374Water advances waste tech with Orange County deal

DURHAM, N.C. - 374Water Inc. (NASDAQ: SCWO), a $51 million market cap cleantech company specializing in organic waste destruction technology, announced an updated timeline for the deployment of its AirSCWO 6 system at the Orange County Sanitation District (OC San) Plant No. 1. According to InvestingPro analysis, the company maintains a strong liquidity position with more cash than debt, though it faces challenges with cash burn. The installation aims to enhance waste management and resource recovery, potentially eliminating the need for offsite biosolids reuse.

OC San, which serves over 2.6 million people and processes more than 180 million gallons of wastewater daily, currently transports over 525 wet tons of Class B biosolids for agricultural reuse across California and Arizona. The AirSCWO system promises a more advanced solution for biosolids destruction.

Following the deployment and improvements made during the system’s installation in Orlando, FL, 374Water has tailored the system design to meet OC San’s specifications. The manufacturing of the AirSCWO 6 system is expected to be completed in March 2025, with the Factory Acceptance Test (FAT) slated for May 2025, ensuring compliance with OC San’s performance requirements. The system is scheduled for delivery and on-site commissioning at OC San’s Fountain Valley plant in May 2025. These milestones are projected to generate approximately $1.3 million in revenue for 374Water from Q2 to Q4 of 2025, a significant potential boost considering the company’s current trailing twelve-month revenue of just $310,000. Want deeper insights into 374Water’s financials? InvestingPro subscribers have access to over 20 additional financial tips and metrics.

The initial six months of operations will be managed by 374Water engineers and operators, during which a Controlled Performance Study will assess the system’s commercial viability. Subsequently, OC San staff will be trained to take over operations with continued support from 374Water engineers.

Looking forward, OC San may upgrade to a larger AirSCWO 30 system, capable of handling 30 wet tons of biosolids per day, after a year of operations. There are also plans to potentially install up to five AirSCWO 200 systems at its Huntington Beach facility.

Rob Thompson, General Manager of OC San, expressed enthusiasm for the partnership’s potential to transform waste management practices. Chris Gannon, President and CEO of 374Water, echoed the sentiment, highlighting the alignment with OC San’s innovative approach to wastewater treatment.

374Water Inc. is recognized for its cleantech solutions in wastewater and waste management across municipal, federal, and industrial markets. The company’s AirSCWO technology is designed to efficiently destroy a wide range of organic wastes, producing safe dischargeable water streams, mineral effluent, safe vent gas, and recoverable heat energy. While the company currently operates at a negative gross profit margin, InvestingPro data shows it maintains a healthy current ratio of 3.81, indicating strong short-term financial stability. This announcement is based on a press release statement.

In other recent news, 374Water Inc. has made significant strides in both technological advancements and financial growth. The company recently reported that its AirSCWO system achieved over 99.9% PFAS removal in trials, a significant result in the waste treatment market. This new technology offers a revolutionary approach to the destruction of hazardous substances, resulting in safe dischargeable water streams, safe mineral effluent, safe vent gas, and recoverable heat energy.

In the financial realm, 374Water secured approximately $12.2 million through a registered direct offering of shares and warrants. The sale involved 9,783,496 shares of common stock and warrants to purchase an additional 14,675,244 shares. D. Boral (OTC:BOALY) Capital LLC acted as the exclusive placement agent for the offering.

These are the latest developments for 374Water, a company that continues to position itself as a leader in the waste treatment market. It’s worth noting that the company’s forward-looking statements regarding the completion of the offering are subject to risks and uncertainties. 374Water’s AirSCWO system’s capabilities are detailed in a white paper available on the company’s website.

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