Comprehensive Update Including ‘Strategic Developments’ Announced
The Australian wastewater cleantech Parkway Corporate (ASX: PWN; FRA: 4IP) has systematically expanded its technical and practical capabilities over the past quarter. According to the recently published quarterly report for December 2023, Parkway has leased a warehouse where a new ‘Centre for Brine Technologies’ is currently being established. The warehouse is adjacent to the existing PPS facility in Melbourne, which also serves as the headquarters of the Parkway Group. The new center aims to improve in-house analytical capabilities and test customer-specific brine treatment on a large pilot scale. In particular, the new center will be used to advance the construction of modular containerized systems with Parkway’s PPT technologies. Existing strategic partners as well as potential customers and cooperation partners support the Center for Brine Technologies and want to use the new possibilities for their purposes.
Go-To-Market Strategy – Work on Standard Design
Parkway Corporate has set out to achieve the transition to commercialization of its PPT technologies (see Figure 1) in 2024. The Parkway management believes that a standardized modular plant design for upstream brine concentration best meets customer requirements. Such standard containers with PPT technologies would, according to Parkway’s assessment, also be attractive for applications outside the CSG industry in Queensland. With regard to CSG companies in Queensland, Parkway believes it can offer an extremely attractive brine concentration service (lower costs, better results) based on toll treatment.
Parkway has already ordered parts for a large-scale pilot plant to be tested in the coming months at the Centre for Brine Technologies. The company expects to be able to reduce the costs of building and maintaining brine tanks by introducing certain upstream technologies. Thanks to this optimization, the company aims to offer the industry a permanently cost-effective solution for dewatering residual brines. Through targeted investment in new capabilities, Parkway aims to build, own and operate (BOO) projects of different sizes in the future, possibly together with one or more partners, depending on the project-specific parameters.
As of December 31, 2023, the company had cash reserves of AUD 3.90 million. The reported cash balance does not take into account existing grant entitlements, the expected R rebate for FY23 ($0.53 million), or other receivables. Parkway attributes the net cash outflow in the past quarter to ongoing investments in the technology portfolio, including the Center for Brine Technologies, as well as the expansion of PPS activities, including funding ongoing work.
Parkway has announced a comprehensive update including ‘strategic developments’ for February 2024.
