Fluence Signs First Commercial SUBRE Order in China, page-4

The first SUBRE order in China was always going to be the hardest to sign up ... but they finally got it with Panjin City.

For Fluence to achieve its growth ambitions in FY20 and beyond, it was critical to get a SUBRE reference site in China. It is only a matter of time before other governments follow. In fact any water treatment facility looking to be commissioned going forward (or upgrade) should be looking to have SUBRE installed.

In terms of magnitude, today's order was on the lower end of what SUBRE is able to achieve. SUBRE installations are for treatment plants ranging from 2,000 - 100,000 m³ a day. Today's falls into the lower end with 3,000 m³ being treated at Panjin City, but should still gross in excess of US$1m at 50% margin.

For context, the first two greenfield installations announced in Mar19 (Jamaica) were for 12 and 6 SUBRE units (or 54 MABR modules). Today's is for 28 SUBRE units, or 84 MABR modules. So whilst it is on the lower end, it is still larger than the first two order combined.

More importantly it demonstrates Fluence's versatility and ability to leverage its technical expertise across product ranges. Having SUBRE operate in -20 degrees is very impressive and opens up the northern part of China and colder climate countries around the world.

The US$1m+ should bring SPS YTD sales to approx US$7m, with US$26m in SPS sales the target for FY19. This means a further US$19m in SPS sales to be announced by years end...