On Monday, Crown Electrokinetics Corp (NASDAQ:CRKN) announced that its Water Solutions division plans to construct and co-own a reverse osmosis (RO) water treatment plant in Cabo San Lucas, Mexico, to desalinate water collected from its proprietary design slant wells.
The company and 529 Capital, a real estate development firm in the Baja Peninsula, will co-build and co-own the new RO plant. Together, they will provide the region with a new, reliable supply of clean, safe drinking water.
Also Read: Chipmaker Taiwan Semiconductor Should See Business Grow 20% Fueled By AI Demand: Analyst
The company said the initiative has the potential to generate up to $40 million in recurring annual revenue for Crown Electrokinetics.
The Baja Peninsula heavily relies on groundwater aquifers as a water source, many of which need to be more exploited. This creates severe challenges in securing a consistent, clean water supply in a region well known for its growing population and tourism industry.
Crown is providing an innovative solution to this critical problem by tapping into an unlimited rechargeable water source with its proprietary design slant wells.
The seawater collected by the slant wells must then undergo purification, which takes place in an RO plant. Advanced membrane filtration technology is used to desalinate, removing up to 99% of dissolved salts and contaminants.
The proposed RO plant should enable Crown and 529 Capital to provide clean drinking water to a select few resorts in Cabo San Lucas through a five-year cooperative partnership.
The cooperative partners will be able to have a reliable water supply, ensuring a sustainable and efficient solution.
In addition, Crown and the cooperative plan to impact the broader community by looking for opportunities to donate up to 500,000 gallons of clean drinking water per day to nearby needy areas, fostering a positive and lasting contribution to the region.
Crown’s Water Solution division, spearheaded by Corey Boaz, President of Construction, plans to commence an environmental impact study immediately. At the same time, 529 Capital will start gathering the necessary permits in Mexico. Construction will likely begin in the summer of 2025, with an anticipated operational date in 2026.
Price Action: CRKN stock is up 11.10% at $0.277 premarket at last check Monday.
Also Read:
Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today’s competitive market.
Get the latest stock analysis from Benzinga?
This article EXCLUSIVE: Crown And 529 Capital To Co-Build and Co-Own Reverse Osmosis Plant in Mexico originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
