Energy Recovery, Inc., the leader in pressure energy technology for industrial fluid flows, announced today the finalization of a purchase order associated with the previously announced letter of award totaling up to $11 million to provide its IsoBoost™ technology for integration into a major gas processing plant to be constructed in the Middle East. The contract is for approximately $7 million worth of equipment and services, with an option for an additional $4 million to be determined at a later date. The optional supply may not be confirmed by the client until the latter portion of 2017. Partial recognition of revenue from this project is expected towards the end of 2016.
Energy Recovery will supply and install multiple IsoBoost systems for the new-build plant, each designed with a flow capacity of approximately 6,000 gallons per minute. A shipment could occur as early as the second quarter of 2017.
Energy Recovery estimates its IsoBoost technology will reduce the facility's ongoing power consumption by 6.5 MW, saving over 57 GWh of energy per year, all while reducing CO2 emissions by 39,000 tons per year. When installed, the IsoBoost units will enable the processing of 2,500 MMSCFD of non-associated gas from two fields into clean-burning natural gas.
Energy Recovery's President and CEO Joel Gay stated, "Today, our Company has executed a deal that marks significant progress in our gas processing segment, making good on our commitment to ensure 2016 is a year of execution and delivery. A project of this size validates the IsoBoost value proposition of arbitraging wasted pressure energy, increasing plant availability and reducing the carbon footprint of what is projected to be one of the world's largest gas processing plants. The continued development of this business segment also demonstrates real progress in applying our technologies to new industries and applications, strengthening the omni-cyclical nature of our business and ultimately delivering value to all of our stakeholders."