06 Apr, 2023
I would like to share an update on PET’s activities and continued progress during the first quarter of 2023.
These include several successful application projects and sales leads across our key regions as we start to see some positive outcomes from our newly implemented distribution-led sales model (see more below). Research and trial works continue, with development initiatives and efforts to expand our reach and relevance in the global market and in more water treatment segments.
PET’s financial results for the full year ended 31 December 2022 were released in late February, along with the Group’s strategic outlook for the period ahead. The presentation and results can be found here and you can watch the webinar here.
Distribution-led sales model
We have introduced a focused distribution-led market approach across all our operations globally.
The model is supported by our direct sales approach, which is focused on the Large Lakes and Waterbodies segment while our distribution and application partners provide faster access to other opportunities within their regions. These distribution partners are now leading the smaller but more accessible and repeatable projects involving nutrient control in drinking water catchments, private waterways, golf courses, recreational water, treatment plants, mining, and water reclamation.
Part of our focus for the coming months is to build our network of trusted application and distribution business partners, to expand the platform for further growth and strengthen relationships.
The first quarter of 2023 has seen significant sales engagement and application activity for both Phoslock® and Phosflow™ in Europe and the UK.
Across the region, Phoslock application projects were completed in Belgium, the Netherlands and Poland, with applications scheduled later this month in Germany and the UK (noting recent weather events may slightly delay the treatment in Germany). These works will total more than 46 tonnes. The sites include camping and leisure lakes, with potential for expanded applications to ensure nutrient levels are managed.
In the UK, both Phoslock and Phosflow will be applied to manage nutrient levels (from sediment-bound phosphorus, surface water sources and stormwater inflows) in a Sustainable Drainage Scheme (SuDS) lagoon. These systems are used for water reuse / recycling to reduce reliance on potable water, delivering a wide range of sustainability and environmental benefits.
The team is also assessing the nutrient load of a Site of Scientific Interest (SSI) lake and its wider catchment area for potential Phoslock application in Winter 2023.
A series of Phosflow trials is underway to assess waterbodies for potential application and efficacy in various environmental settings, as well as assessments to confirm phosphorus removal from dairy streams and effective phosphorus absorption from wastewater treatment for safe discharge. One of the trials represents a significant opportunity with a major UK wastewater drainage infrastructure manufacturer and supplier to manage domestic and commercial wastewater.
We continued to make progress and raise awareness in the USA, with the successful treatment of Lake Leslie, Indiana, using Phoslock and Phosflow. This was an important application for the team and our partner, Aquatic Control, resulting in the health of this lake being restored for the local community’s benefit. Initial data received indicates Phosflow applications resulted in a significant reduction in external loading of phosphorus into the lake, proving that when both products are used together, they provide a total solution.
The team is working with other clients across the USA to address the growing issue of nutrient pollution in our waterways, building awareness and creating opportunities for the Company. Sales continue to grow, and many larger projects are being discussed, with several project quotations pending. This is a positive indication that the new distribution sales strategy is performing in the region.
Australia and New Zealand
We are seeing positive engagement and activity regionally, with several project leads expected to progress to confirmed sales in the near future. A number of repeat applications have been scheduled for the second half.
One of our first mining applications for Phoslock was confirmed with a lithium operation in the Northern Territory. The mining and resources segment has significant opportunity for PET throughout Australia, helping to address the sector’s sustainability and governance requirements.
Additional projects are in the pipeline and in planning across both Australia and New Zealand, including Phosflow trials in Victoria, New South Wales, Tasmania and Western Australia and a number of commercial sales in both countries.
Recently I was in Western Australia and had the opportunity to confirm some significant trial work with Phosflow. We will conduct a mid-size trial for a municipal project in the south of the state with this same municipality treating with Phoslock later in the year.
Two further Phosflow trials are confirmed with other municipalities in the Perth region and ongoing treatments of the Narrows will continue later in the year.
PET has also engaged with Hunter Water in NSW, where we are conducting trial work with Phosflow.
We are in the final stages of signing distribution agreements with a number of partners throughout the major water regions of China. Like other regions, these distribution partners provide us quick and secure access to water bodies throughout China. Substantial work has been undertaken to ensure our new China business model meets the governance and risk management standards that we have put in place.
We also remain very focused on pursuing all avenues to collect the outstanding debts in China.
Activities in South America continue to be solid, with product ordered for ongoing treatments of regional lakes.
Please visit the Projects section of our website for up-to-date information about all our open (in progress) activities. A map of completed projects will be live shortly.
Conferences and events
In addition to our on-the-ground efforts, we have also been actively engaging with the scientific community through participation at various conferences and events.
Damian Whelan and Dr Kate Waters-Hart have been invited to present at a leading conference in Finland in April, to share how PET’s technology can help address the challenges faced by the water industry. Attendees will include leading scientists, limnologists and stakeholders responsible for managing the country’s many waterbodies.
The PET USA team has participated in various events and conferences across the region, meeting with industry experts and discussing lake management techniques, strategies and technologies with water professionals. These included the Northeast Aquatic Plant Management Society Conference, the Society of Lake Management Professionals Summit, the Pennsylvania Lake Management Society Annual Conference, the Joint Western Society of Weed Science, and Western Aquatic Plant Management Society events.
Research & Development
Our team continues to develop the potential use of nitrogen binding compounds, working with the US EPA and various other research organisations. The objective is to assess formulation and product opportunities for nitrogen capture in flowing water.
The plant development upgrades to our China facility have been completed, with the new machinery installed and fully operational.
With a core Global team now mostly in place, we have a good complement of the right people in the right roles around with world. Their professionalism, hard work and dedication will drive the success of the Company, delivering innovative solutions and building partnerships that make a meaningful difference in the world.
We are confident that the second quarter of 2023 will continue to see positive progress in terms of PET’s growth and development. With several major projects in the pipeline for later in the year and your support and partnership, I am confident that we will achieve our goals, build value in the business and make a lasting impact on the environment.
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Managing Director & Chief Executive Officer