SciDev is an Australian leader in PFAS remediation
\nThe company is on a strong trajectory as PFAS makes headlines
\nStockhead reached out to SciDev\u2019s CEO, Sean Halpin<\/p>\n
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They call PFAS<\/strong> the \u201c forever chemicals\u201d because they tend to stick around forever.<\/p>\n Short for Per-and Polyfluorinated Substances,<\/em> PFAS are used in tons of stuff, like non-stick cookware, waterproof clothing, and even in firefighting foam.<\/p>\n But these sneaky little compounds don\u2019t break down easily (hence the name forever chemicals), so they end up lingering in our environment, water, and even in our bodies for ages. Studies have linked them to all sorts of health issues, from cancer to liver problems.<\/p>\n PFAS has been getting some bad press lately after the largest maker of these chemicals, 3M (NYSE:MMM),<\/strong> offered to pay US$10 billion to clean up PFAS-contaminated waterways in the US.<\/p>\n Australia meanwhile is amongst the world\u2019s hotspots for this toxic stuff, along with some other places like China, Europe, and North America.<\/p>\n Cleaning up PFAS is no easy feat, but there\u2019s one ASX-listed company that might be up to the challenge: SciDev (ASX:SDV)<\/a><\/strong>.<\/p>\n The ~$67m market capped company is a chemical water treatment outfit that owns a world-leading tech to deal with PFAS.<\/p>\n \u201cPFAS is both a domestic and overseas issue \u2013 it\u2019s a global problem,\u201d explained SciDev\u2019s CEO, Sean Halpin.<\/strong><\/p>\n \u201cWhat makes them so troublesome is how useful they were, and the fact they were used in a wide range of consumer and industrial products.<\/p>\n \u201cBecause of that, there\u2019s been widespread contamination of PFAs in drinking water sources, freshwater sources, groundwater aquifers, and so on.\u201d<\/p>\n \u00a0<\/p>\n PFAS is also highly soluble and mobile, which means it can easily migrate long distances into groundwater and surface water, making its way into rivers through rainwater runoff.<\/p>\n Humans can be exposed to PFAS through a range of different ways such as contaminated drinking water and food consumption.<\/p>\n The negative effects PFAS have on human health are well documented \u2013 including fertility issues, birth defects, and a wide range of cancerous thyroid issues.<\/p>\n \u201cAnd when coupled with the fact that PFAS chemicals don\u2019t break down in the environment or within our bodies, they continuously accumulate and the longer we\u2019re exposed, the higher their concentration within our bodies and in the environment.<\/p>\n \u201cSo this makes PFAS a really serious problem,\u201d Halpin told Stockhead<\/em>.<\/p>\n \u00a0<\/p>\n The Australian Government, for its part, has worked since 2002 to reduce the use of certain PFASs.<\/p>\n The Department of Defence<\/strong> for instance has a comprehensive PFAS Investigation and Management Program<\/em> underway, which has identified around 27 Defence sites that are now undergoing investigations.<\/p>\n The Department of Infrastructure, Transport, Regional Development, Communications and the Arts<\/strong> is also undertaking a PFAS investigation program at airports where firefighting services have historically used PFAS-containing foams.<\/p>\n For most people living in PFAS affected areas, the government has advised that the highest risk of exposure is likely to be through the consumption of contaminated groundwater (i.e. bore water) and food grown using contaminated groundwater.<\/p>\n \u00a0<\/p>\n SciDev has so far remediated over 30 PFAS\u2011impacted sites in Australia to combat this problem, treating in excess of 7 billion litres of PFAS\u2011contaminated water across a range of applications.<\/p>\n SciDev has also done PFAS remediation work in the US, where the market across 55,000 PFAS sites is estimated at a whopping $220 billion.<\/p>\n The company has developed what some say the most effective, compliant, sustainable, and commercially viable treatment solution available on the market for addressing the growing issue.<\/p>\n \u201cWhen we talk about PFAS, SciDev has two core technologies \u2013 Fluorofix<\/em> which is the PFAS treatment stage, and RegenIX<\/em>, a regeneration process that extends the life of the Flurofix,\u201d said Halpin.<\/p>\n Fluorofix is the only commercially available solution that can treat large volumes of highly contaminated water to below the limit of reporting of 0.00023ug\/l ,and generate waste volumes of less than 0.001%.<\/p>\n FluorofIX is also highly effective at removing the full profile of long-chain and short-chain PFAS molecules, whereas other solutions currently target long-chain PFAS molecules only.<\/p>\n This feat is made possible by using SciDev\u2019s world-leading, cutting edge ion-exchange technology, the\u00a0Anion Ion Exchange<\/strong><\/p>\n RegenIX meanwhile is SciDev\u2019s ion exchange resin regeneration technology, which is integrated into all of the company\u2019s treatment systems without significant additional capital expenditure costs.<\/p>\n \u201cWe have tried and tested our products in everything from highly contaminated liquid waste, all the way to low level contamination in groundwater aquifers.<\/p>\n \u201cWe have improved our process over the last eight years through all that, and we now have fully commercialised products that we\u2019ve developed for the Australian market.<\/p>\n \u201cWe now see global opportunities through the more widespread regulations, and a huge market that\u2019s developing in front of us.<\/p>\n \u201cAnd we have the right technology to take it up,\u201d Halpin said.<\/p>\n \u00a0<\/p>\n SciDev\u2019s clients include ASX giants like Cleanaway Waste Management (ASX:CWY)<\/a> <\/strong>where it\u2019s deploying a Build Own Operate (BOO) water treatment plant in Queensland to treat PFAS-impacted leachate.<\/p>\n Last month, SciDev also secured a contract with Ventia<\/em> to supply a BOO temporary water treatment plant in Victoria to treat PFAS contaminated surface water. The contract is estimated at approximately $2m in revenue over a 6-month period.<\/p>\n \u201cOur gross margins for building operate projects range from 30% right up to 90%. But as a general rule of thumb, Build Own and Operate contract\u2019s margins are around 30% to 50%, but they can go north of that,\u201d says Halpin.<\/p>\n Scidev also works with clients in construction and infrastructure, as well as mining, oil & gas companies including those in the US.<\/p>\n Its product Maxiflox <\/em>is used by mining companies to treat mine site tailings water that have high salinity levels, to assist in maximising water recovery whilst minimising the tailings footprint.<\/p>\n While the company already has an established business here in Australia, Halpin says he wants to grow and develop new frontiers.<\/p>\n \u201cWhat we\u2019re exploring right now are the European and the North American markets,\u201d said Halpin.<\/p>\n \u201cAround eight or nine months ago, we put boots on the ground over there. So although we are focused on domestic growth, some of the big opportunities that we\u2019re looking at are in fact overseas.\u201d<\/p>\n \u00a0<\/p>\n Revenue for Q3 came in strongly at $29.1m, up 38% on the pcp.\u00a0On a year to date basis, unaudited underlying EBITDA was $6.8m, up 12% on the pcp.<\/p>\n \u201cWe\u2019re very much in an aggressive growth trajectory at the moment. And that\u2019s one thing we feel we\u2019re able to to continue on doing, especially on the chemical services business segment,\u201d said Halpin.<\/p>\n \u201cWe\u2019ll be focusing on delivering our strategy of taking our PFAS technology into international markets, and continuing to grow market share within mining oil and gas globally.<\/p>\n \u201cThis is certainly a good time for the company, given the extent of the opportunity in front of us, and how well we\u2019re positioned to capitalise on that,\u201d said Halpin.<\/p>\n \u00a0<\/p>\n \ufeff<\/span><\/span>\u00a0<\/p>\n \u00a0<\/p>\n Fluence Corp (ASX:FLC)<\/a><\/strong><\/p>\n Fluence specialises in providing plug-and-playm and cost-effective water and wastewater treatment solutions that can be quickly installed, automatically operated, and easily maintained.<\/p>\n The company offers a range of services across the complete water cycle, from early-stage evaluation, through design and delivery, to ongoing support and optimisation of water-related assets.<\/p>\n In its latest update, Fluence reported Q1 2024 recurring revenue of $3.1m, up 82% growth over the pcp.<\/p>\n \u00a0<\/p>\n De.Mem (ASX:DEM)<\/a><\/strong><\/p>\n De.mem\u2019s water treatment business offers \u201cone stop shop\u201d solutions to industrial customers.<\/p>\n De.mem has workshops in Melbourne, Perth, Brisbane and Launceston, and internationally in Singapore and Velbert\/Germany. The company serves a long term client base which includes leading corporates from the mining, food & beverage, agricultural and other industrial sectors.<\/p>\n De.mem offers a wide range of services, equipment, chemicals and pumps, around its portfolio of proprietary hollow fibre membrane technologies and specialty water treatment chemicals.<\/p>\n Hollow fibre membranes manufactured by De.mem include the company\u2019s Ultrafiltration, Nanofiltration and Graphene-Oxide enhanced technologies.<\/p>\n \u00a0<\/p>\n Duxton Water (ASX:D2O)<\/a><\/strong><\/p>\n Duxton owns and manages a portfolio of water entitlements and assets, primarily located in the Southern Murray Darling Basin.<\/p>\n In the past, irrigators received a permit to access water based on their agricultural plantings; but in the 1990s, it was realised that further issue of water permits was not sustainable, so a cap was placed on the further issuance.<\/p>\n To allow water-users to continue to develop however, the Government developed a trade capability by recognising the permit as a perpetual right to the resource, and by separating this asset from the land. So, one can own water without land, and land without water.<\/p>\n Today, these rights are called water entitlements, which are a perpetual right to a particular volume of water.<\/p>\n Duxton has said that a forward sale of water allocations is important to farmers as it mitigates their risk.<\/p>\n \u201cForward allocation sales act as a price hedging tool for irrigators, as they provide visibility to cost and supply of allocation for the year ahead,\u201d it said.<\/p>\n \u00a0<\/p>\n The views, information, or opinions expressed in the interview in this article are solely those of the interviewee and do not represent the views of Stockhead.<\/em><\/p>\n Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.<\/em><\/p>\n <\/span><\/p>\n The post Why ASX water tech stock SciDev is on the front line in fight against \u2018forever chemicals\u2019 PFAS<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"How humans get exposed to PFAS<\/h2>\n
What Australia is doing about it<\/h2>\n
SciDev on front line in fight against PFAS<\/h2>\n
Blue chips clients and new markets<\/h2>\n
\u201cAggressive growth trajectory\u201d<\/h2>\n
SciDev share price today:<\/h2>\n\n
A few other water-focused stocks on the ASX<\/h2>\n