Eco Investor April 2016
International Deals for Pacific Environment
Pacific Environment's work to commercialize its EnviroSuite software offshore is paying off with two new deals: in England with Thames Water Utilities Ltd and in Spain with Libelium.
Thames Water has 15 million customers and is the UK's largest water and wastewater services company. However, traditional approaches in wastewater do not give an adequate understanding of the impacts of odour on local communities, and this can adversely affect the social licence to operate. EnviroSuite will allow for proactive management and enable alternative operating options instead of expensive engineering controls.
The software will be deployed at two key sites for an initial one year contract with an option to significantly extend the term and number of sites. The software will provide real-time monitoring, analysis, modeling, forecasting and incident intelligence for odour complaints. This will be done through three modules: Modelling of weather and air quality; Monitoring of weather and indicators of odour risk; and Incident Investigation with analysis of complaints and peak events.
The Thames Water deal will allow for the first time the software to demonstrate
its usefulness to the wastewater industry, which has over 100,000 public
wastewater facilities around the world. Pacific Environment said the project
has the potential to set the benchmark for environmental management technology
in the industry. The wastewater sector also doubles the size of the global
market for EnviroSuite.
Chief executive Peter White said EnviroSuite was selected after a competitive worldwide tender. "We intend to use this cornerstone client to build our business in the water services sector in the UK and Europe. We will be looking at establishing a permanent office in the UK in due course."
In Spain, Libelium is an Internet of Things (IoT) platform provider that designs and manufacturers hardware and software for wireless sensor networks. It enables fast, efficient delivery of IoT, M2M and Smart Cities solutions. The new partnership allows Pacific Environment to be a member of the Libelium IoT Marketplace Partner Program. The aim is to commercialize IoT kits that combine Libelium's hardware with the EnviroSuite technology. The companies will collaborate to produce hardware/software solutions to sell to Libelium's customer base.
Libelium is building a global distribution network and has resellers in Asia, North and South America, Europe and Oceania. Alicia Asín, chief executive of Libelium, said the potential for the application of EnviroSuite and Libelium solutions across a diverse range of industries around the world is huge. "We are excited to collaborate with EnviroSuite to create world- leading proactive environmental management solutions. The combination of EnviroSuite's industry-leading dashboard and Libelium sensors will empower the user with real-time environmental monitoring, forecasting and archived data in order to make the best possible decisions."
Libelium joins other EnviroSuite resellers: Odournet in the UK, France and Spain; blacktogreen consulting in Spain; SigmaSpace in the US; EET in Malaysia; and ESC in Singapore.
For investors, it is encouraging that Pacific Environment won the Thames Water deal in a competitive tender and that Libelium is growing its worldwide distribution network. Data released by Pacific Environment shows how large is EnvironSuite's addressable market and how early is its penetration so far.
For example, in wastewater there are 7,000 potential clients but only one signed up so far; in bulk ports there are circa 1,800 potential clients with only 8 as current clients. It is the old venture capital story of entrepreneurs trying to win a slice of a huge, potentially company- making market. Investors who like the story will have a realistic and fun way of measuring their progress. The current score is 35 clients in Australia, SE Asia and Europe.
Another score is Pacific Environment's half year revenue. To 31 December it was $9.7 million, up 34 per cent on the previous December half. (ASX: PEH)
Search Eco Investor