Global water treatment firm, H2O Innovation benefits from California drought, increasing world demand for potable water
This brilliantly organized company is emerging as a force to reckon with among the gorillas of water treatment. It is showing healthy growth that shows management’s commitment. For example, H2O Innovation Inc. (TSXV: HEO | OTCQX: HEOFF) reported revenues totaling $13.7 M for the three months ending December 31, 2014 representing a +55.6% increase as compared to the same period in the previous fiscal year.
With 168 employees in offices and/or facilities in Quebec City, Toronto, Minnesota, Calgary and San Diego this company’s potential for growth is worth watching because of its position in the water purification space. According to Mr Marc Blanchet, VP Corporate Affairs: “Among the large players of the industry we are one of the small companies but among the small players we are one of the larger companies.”
Water filtration using membrane technology is a growth sector. The global demand for membrane filtration modules was estimated at approximately 15.6 billion USD in 2012. Driven by new developments and innovations in material science and process technologies, global increasing demands, new applications, and others, the market is expected to grow around +8% annually in the next years. It is forecast to increase to 21.22 billion USD in 2016 and reach 25 billion in 2018.
H2O Innovation designs and provides state of the art, custom built and integrated water treatment solutions based on membrane filtration technology for municipal, energy and natural resources end users. In 2014 it delivered 24 projects in North America, the largest one in support of Fort Hills Suncor operations in Alberta. The average sale price for these projects was $1.2 M.
The Company has built substantial know-how that permits it to address emerging problems with ease. For example, on March 3, 2015 the Company announced the delivery of a containerized water treatment system to the Cambria Community Service District (California) to help this community recycle used water and desalinize water to help offset the impact of the region’s 10 year drought. The system’s nameplate capacity is to provide up to 3,200 m3 of clean water per day.
In waste water treatment, membrane technology is becoming increasingly important. With the help of Ultra/Microfiltration it is possible to remove particles, colloids and macromolecules, so that waste water can be disinfected. This is needed if waste water is discharged into sensitive waters especially those designated for contact water-sports and recreation or if waste water is to be recycled.
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Membrane separation processes operate without heating and therefore use less energy than conventional thermal separation processes such as distillation, sublimation or crystallization.
Think of traditional sugar maple operations where maple sap was evaporated 20 fold from clear maple sap to golden syrup, a market in excess of $200 million per annum. To evaporate the tremendous amount of water in the sap, a large quantity of fuel must be burned. Some producers use oil, however, most sugarmakers use wood cut from their own woodlots as fuel.
Membrane technology is emerging as the single most process for rationalizing energy costs in the maple sugar industry, an opportunity that H20 innovation has secured. Through its maple division the Company provides reverse osmosis systems to the maple syrup industry, which creates a concentrate prior to traditional concentration.
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>