Feasibility study client wants major project to move forward
Industrial wastewater specialist Australian cleantech company Parkway Corporate (ASX: PWN: FRA: 4IP) continues to steer a successful course operationally and strategically. In its just-released quarterly report for the period ended 30 September 2023, Parkway again reported strong quarterly revenue of $1.29 million, coupled with record quarterly cash earnings ($1.56 million). The company also completed a successful $4 million placement in August, enabling key investments in technology, facilities and equipment. As of 30 September 2023, the company had cash reserves of $4.91 million.
Feasibility study client wants major project to move forward
Beyond the “bread-and-butter” business, there is an increasing focus on the development and commercialisation of the company’s proprietary technologies. Parkway reports “active progress in the implementation of its major project in Queensland” in connection with its recently completed feasibility study for the treatment of CSG brine waste. It said the client, a leading global energy company, had recently made an enquiry to Parkway to progress the project evaluated in the feasibility study. The “discussions are progressing positively”, it says. Parkway has been advised by the client that the next phase will proceed under the existing contractual relationship. So, no new contract is needed. Parkway is also confident that its solution will be classified as best available technology (BAT) by the relevant Queensland authorities and can provide a complete solution for the entire industry.
MOU with renewable energy company expected soon
Parkway is also in discussions with a leading developer of renewable energy projects in Central Queensland who has a strategic interest in developing green chemical supply chains. Parkway expects to sign a memorandum of understanding (MOU) soon.
Upstream technology at centre of commercialisation efforts
Parkway aims to deliver near-term solutions by providing standardised, modular container-based equipment for the pre-concentration of residual brines. These upstream technologies are therefore the focus of near-term commercialisation efforts, it says. Pre-concentration of brine would, as a first step, reduce the volume of problematic residual brine and thus reduce costs for the otherwise necessary storage in brine ponds. In the context of its master plan, however, Parkway sees the resulting concentrated residual brines only as an intermediate stage for complete treatment in a (later) downstream process, which the company also has its eye on in the long term. The goal is a circular economy that almost completely transforms problematic residual brines into marketable industrial raw materials. This concept has the strong support of regulators and stakeholders.
New centre for brine technologies – Parkway consistently expands its capabilities
In the coming weeks, Parkway is expected to consolidate its Melbourne warehouse space and commence establishment of a new ‘Parkway Centre for Brine Technologies’. The centre will be supported by Parkway’s existing strategic partners. In addition, Parkway anticipates that some of the funding required to establish the centre will come from external sources, including grants.
Conclusion: Despite investment by the CSG industry in Queensland being at over $100million $100 million over a 15-year period, no sustainable solution has yet been found to the significant industry-wide problems associated with salt. Parkway's two-stage approach of an upstream and a (later) downstream component has disruptive potential because it could point the entire industry towards a circular economy. Parkway intends to bundle its activities in this regard in its wholly owned subsidiary Queensland Brine Solutions (QBS). At its core, QBS promises CSG companies a highly attractive brine concentration service with lower costs and better outcomes. The phased implementation through the separation of upstream and downstream business reduces risks for all parties involved and, not least, avoids financial overstretch for Parkway itself. Given the size of the projects and their long duration, the statement that Parkway can build and operate the upstream components for the brine pre-concentration itself (Build, Own, Operate; BOO) carries weight. But it is also possible to work with partners, depending on the project-specific parameters. It speaks for itself how quickly it has been possible to involve the various stakeholders - industry, government and other key parties - in the "master plan" project. There is a simple reason for this: Parkway offers a real win-win-win solution.
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