Anaergia and East County, California, Advanced Water Purification Joint Powers Authority Expand Project Scope

Ottawa Citizen

28-04-2025

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Anaergia to provide increased services and procurement of equipment for current project
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CARLSBAD, Calif. & BURLINGTON, Ontario — Anaergia Inc. ('Anaergia,' 'the Company,' 'us,' or 'our') (TSX: ANRG) (OTCQX: ANRGF) is pleased to announce that its subsidiary, Anaergia Technologies LLC, has secured a change order to provide more engineering services and supply of equipment as part of an ongoing project with the East County Advanced Water Purification ('AWP') Joint Powers Authority ('JPA') located in East San Diego County.
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This builds on the contract that was disclosed on July 18, 2023. The water supply project is now under construction in Santee, California, and this facility is expected to commence operations before the end of 2026. This change order is expected to increase Anaergia's revenues from the project by C$8.6 million.
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The scope of work includes the procurement of long-lead time components including a gas treatment system, combined heat and power systems ('CHP'), and the required electrical equipment. The gas treatment system will cleanse the biogas generated by the anaerobic digesters, which will then be utilized to power the CHPs. This power will be used by the JPA to operate the water purification plant. These key equipment procurements are crucial for the planned design-build project.
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'This development is an important step as we pursue our goal of providing a new source of high-quality water, while reducing operating costs by generating energy on-site which ultimately benefits the JPA's ratepayers,' said Mark Niemiec, Director of the East County AWP JPA. 'This early work package will help us accomplish this mission in the most cost-effective manner possible.'
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'This change order with the JPA leverages Anaergia's suite of integrated solutions,' said Assaf Onn, CEO of Anaergia. 'It exemplifies how we work with customers to pursue our mission of accelerating the world's clean energy transition by transforming waste into valued resources.'
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The East County Advanced Water Purification Program is a collaborative effort between Padre Dam Municipal Water District, the City of El Cajon, the County of San Diego and Helix Water District. It will create a new, local, sustainable and drought proof drinking water supply using state-of-the-art technology to purify East San Diego County's recycled water. This water recycling opportunity will diversify East San Diego County's water supply, reduce our dependence on imported water and produce up to 30 percent of East County's current drinking water needs.
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Anaergia is a pioneering technology company in the renewable natural gas (RNG) sector, with over 250 patents dedicated to converting organic waste into sustainable solutions such as RNG, fertilizer, and water. We are committed to addressing a significant source of greenhouse gases (GHGs) through cost-effective processes. Our proprietary technologies, combined with our engineering expertise and vast experience in facility design, construction, and operation, position Anaergia as a leader in the RNG industry. With a proven track record of delivering hundreds of innovative projects over the past decade, we are well-equipped to tackle today's critical resource recovery challenges through diverse project delivery methods. As one of the few companies worldwide offering an integrated portfolio of end-to-end solutions, we effectively combine solid waste processing, wastewater treatment, organics recovery, high-efficiency anaerobic digestion, and biomethane production. Additionally, we operate RNG facilities owned by both third parties and Anaergia. This comprehensive approach not only reduces environmental impact but also significantly lowers costs associated with waste and wastewater treatment while mitigating GHG emissions.
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This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects Anaergia's current expectations regarding future events including, but not limited to, the value of the contract and the change order and the development, funding, goals and benefits of the project. Forward-looking information is based on a number of assumptions, including, but not limited to, counterparty contractual performance, the full development and funding of the project, the capability of the Company's technology and performance with respect to the project objectives, the enforcement of organic waste recycling laws such as SB1383, and the actual diversion of food waste from regional landfills. The Company is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to, the factors discussed under 'Risk Factors' in the Company's annual information form for the fiscal year ended December 31, 2024, and under 'Risks and Uncertainties' in the Company's most recent management's discussion and analysis. Actual results could differ materially from those projected herein. Anaergia does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws. Additional information on these and other factors that could affect Anaergia's operations or financial results are included in Anaergia's reports on file with Canadian regulatory authorities.
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