SAN LEANDRO, Calif.,
April 5, 2017 /PRNewswire/ -- Energy
Recovery, Inc. (NASDAQ:ERII), the leader in pressure energy
technology for industrial fluid flows, today announced a new
licensing agreement with Alderley plc, a leading global supplier of
integrated modular skid systems for oil and gas applications.
The 10-year licensing agreement will grant Alderley exclusive
rights to sell and promote the Energy Recovery centrifugal line of
products, including the IsoBoost™ and
IsoGen™ systems for gas processing and pipeline
applications in the Middle East
region, including Saudi Arabia,
Kuwait, the United Arab Emirates, Qatar, Bahrain, Oman, Iraq
and Iran to the extent
international sanctions and laws permit. In return, Energy Recovery
will receive a one-time royalty for each IsoBoost or IsoGen unit
sold.
Energy Recovery has continuously expressed the drive to
establish a solid beachhead in the GCC, or Gulf Cooperation Council
countries. Progress toward this strategic imperative began in
2015 when the company commissioned its first energy recovery device
for gas processing, an IsoGen turbogenerator, within one Saudi
Aramco's larger facilities in the southeastern province of The
Kingdom of Saudi Arabia. This
beachhead was later fortified in 2016 when Energy Recovery
announced the largest purchase order in the company's history,
committing to the provision of multiple IsoBoost units for what
will be one of the world's largest gas processing plants for the
largest global producer of hydrocarbons.
Through this agreement with Alderley, the company progresses to
the next phase of its centrifugal product strategy, allowing Energy
Recovery to focus on technology and innovation while leveraging
Alderley's expertise in project execution. The partnership
with Alderley aims to accelerate a critical mass of installations
for the IsoBoost and IsoGen product lines in the GCC by leveraging
Alderley's strong relationships and installation expertise within
the region. Ultimately, the agreement was consummated to
generate more predictable and profitable revenue streams within the
product line. Throughout 2016, Energy Recovery executed a
rigorous corporate development effort to identify and qualify
partners for the Centrifugal product line, with Alderley rising as
the ideal fit.
Energy Recovery's President and CEO Joel
Gay stated, "This agreement is yet another step toward
realizing and unlocking the value of our long term strategy,
moreover evidence of the continued evolution of Energy Recovery's
business model to that of a licensor of differentiated and
disruptive technology. In early 2015, we explicitly
prioritized the GCC for the deployment of our IsoBoost and IsoGen
technologies within gas processing and pipeline applications; this
a function of the then pending economic malaise within the North
American midstream and upstream and more importantly, the untapped
energy density throughout the oil & gas infrastructure of the
Middle East. Our focused go-to-market strategy yielded
success by way of the maiden installation of an Energy Recovery
device within one of Saudi Aramco's larger facilities in the first
quarter of 2015, followed by securing the largest purchase order in
the Company's history for multiple IsoBoost units approximately one
year later. These proof points of early adoption inexorably
lent to a comprehensive corporate development effort to identify
and engage the next licensing partner for the Company,
Alderley. Alderley's distribution channel, project management
and product delivery expertise, coupled with our technology will
make a potent combination in further institutionalizing hydraulic
energy recovery solutions within the target region. We are
therefore elated to announce this licensing agreement and look
forward to executing within its construct to further create value
for our shareholders."
Mark Colebrook, Chief Executive
Officer, Alderley plc, added, "Alderley is excited to be working
with Energy Recovery, Inc. in the selling and promotion of the
company's innovative and proven centrifugal products, as well as
further driving the adoption and installation of these products
across the GCC. Our knowledge and experience within the region, as
well as the oil and gas industry will further bolster the execution
and delivery of this innovative technology to an increasing number
of plants and operators."
About Energy Recovery
Energy Recovery (NASDAQ:ERII) recycles and converts wasted
pressure energy into a usable asset and preserves pumps that are
subject to hostile processing environments. With award
winning technology, Energy Recovery simplifies complex industrial
systems while improving productivity, profitability, and efficiency
within the oil & gas, chemical processing, and water
industries. Energy Recovery products save clients more than
$1.8 billion (USD) annually.
Headquartered in the Bay Area, Energy Recovery has offices in
Houston, Ireland, Shanghai, and Dubai. Learn more at
www.energyrecovery.com.
About Alderley
Alderley plc is a multi-disciplined engineering company
operating in the oil, gas and petrochemical industries producing
effective and efficient solutions for the metering, processing,
treatment and control of hydrocarbon products. Alderley has a long
heritage in the oil and gas industry and has supplied more than 750
systems to more than 50 countries. Alderley has headquarters in the
UK, and regional facilities in the UAE, Kingdom of Saudi Arabia and Singapore. More about Alderley can be found
at www.alderley.com.
Forward-Looking Statements
Certain matters discussed in this press release are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including our belief
that Alderley will be successful in accelerating a critical mass of
installations for the IsoBoost and IsoGen product lines in the GCC,
that the agreement will generate more predictable and profitable
revenue streams within the product line, that the
agreement will help realize and unlock the value of our long
term strategy and create value for our shareholders, and that
Alderley's distribution channel, project management and product
delivery expertise, coupled with our technology will make a potent
combination in further institutionalizing hydraulic energy recovery
solutions within the target region. These forward-looking
statements are based on information currently available to us and
on management's beliefs, assumptions, estimates, or projections and
are not guarantees of future events or results. Potential risks and
uncertainties include our ability to achieve the milestones under
the licensing agreement with a subsidiary of Schlumberger Limited
and the risks discussed under "Risk Factors" in our Form 10-K filed
with the U.S. Securities and Exchange Commission ("SEC") on
March 8, 2017 as well as other
reports filed by us with the SEC from time to time. Because such
forward-looking statements involve risks and uncertainties, our
actual results may differ materially from the predictions in these
forward-looking statements. All forward-looking statements are made
as of today, and we assume no obligation to update such statements,
whether as a result of new information, future events, or
otherwise.
Contact
Brian Uhlmer
buhlmer@energyrecovery.com
(713) 858-2284
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SOURCE Energy Recovery, Inc.