Chariot to buy renewable water production firm for USD1.0 million
(Alliance News) – Chariot Ltd on Monday said it will acquire independent water producer ENEO Water PTE Ltd for USD1.0 million.
Chariot is a transitional energy company focused on Africa, while ENEO Water focuses on clean water solutions using renewable energy.
The acquisition will be paid through an initial cash consideration of USD500,000 upon completion of the sale agreement, plus a further deferred consideration of up to USD500,000 payable based on the closing of further projects.
The deal complements Chariot’s transitional energy and green hydrogen businesses in the context of increasing water scarcity across Africa, he said.
He said that ENEO utilizes “efficient, modular and scalable” reverse osmosis technology, which can be 100% powered by solar energy to produce desalinated water.
Chariot said that its intention is to provide affordable access to water for those who sell and private municipalities across the continent, as part of its commitment to socially responsible development.
This includes plans to originate, invest in and own decentralized water supply projects, where water is produced through renewable energy and can be sold to caretakers under long-term agreements.
He also said that a proof-of-concept project is being built in the largest wind farm in Djibouti, and claimed that this would provide access to drinking water for the local communities for the next 20 years.
“Water is a precious commodity with cleanliness, scarcity and sustainability of supply becoming growing themes across Africa,” said Head of Transitional Energy Benoit Garrivier.
“This acquisition of ENEO is a strong strategic fit for Chariot with the renewable energy and water sectors sharing similar geographic and off-take markets.
“The treatment of brackish and contaminated water is an important consideration for commercial and industrial companies and desalinated water is also an important component of green hydrogen production, so we also have a natural overlap within the portfolio and network our current.”
Shares in Chariot were down 1.1% at 15.93 pence each in London at midday on Monday.
By Greg Rosenvinge, Alliance News reporter
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