Arsenic, iron and manganese filter systems to be delivered in 2025.
LOS ANGELES, CALIFORNIA (10.22.24) – Cadiz, Inc. (NASDAQ: CDZI / CDZIP) (“Cadiz” or the “Company”), a California water solutions company, today announced that its operating subsidiary ATEC Water Systems, LLC (“ATEC”) was awarded three new sales contracts totaling $1.6 million for arsenic, iron and manganese filtration systems. The systems will be delivered in 2025.
“Groundwater contamination is a growing global threat,” said Susan Kennedy, Cadiz CEO and Board Chair. “The demand we’ve been seeing over the last few months for ATEC’s treatment products is setting us on a path for strong segment growth in 2025.”
Under the new sales contracts announced today, ATEC will manufacture treatment systems using its 42” and 48” wide filters to remove arsenic, iron and manganese from groundwater supplies in rural and suburban communities in California, Washington and Oregon that serve close to 100,000 people reliant on groundwater as their principal water supply. The filters will be capable of processing up to 10 million gallons per day.
“I am proud of the work we are doing to help water districts, cities and disadvantaged communities clean up their groundwater, and we are excited to ramp up production at ATEC to meet the growing demand we’re seeing for our products.” said Lee Odell, ATEC’s Chief Operating Officer.”
Since Cadiz acquired ATEC’s assets in 2023 for $2 million, ATEC has experienced rapid growth in orders in 2024 propelled by tightening water quality regulatory standards and the need to integrate groundwater into the portfolio of water supply for growing communities. Cadiz continues to expect gross ATEC segment revenues to reach $15 million for fiscal year 2024 and anticipates strong segment growth in 2025.
The ATEC treatment system uses patent-pending filter media processes to remove common groundwater contaminants by adsorption. The filters and systems are fully scalable and can be manufactured to different sizes and specifications depending on the volume of groundwater treated; contracts to date range from 60 million gallons a day for the largest water conservancy district in Utah to customized smaller systems for isolated smaller communities dependent on groundwater for their water supply. ATEC systems provide treatment for groundwater addressing a wide range of contaminants including arsenic, hexavalent chromium, nitrates, and other groundwater constituents of concern.
