374Water completes Phase 2 of Minnesota AirSCWO pilot, begins next testing stage

374Water Inc (NASDAQ:SCWO, FRA:8LL) announced that it has completed Phase 2 of its mobile AirSCWO deployment in St. Cloud, Minnesota, and has begun the third phase of the project as the state continues evaluating the company's technology for the destruction of PFAS-contaminated waste.

The deployment is being carried out under a $600,000 waste destruction services contract with the City of St. Cloud, in partnership with Barr Engineering, at the city's Nutrient, Energy, and Water Recovery Facility. The pilot is part of Minnesota's assessment of AirSCWO technology for destroying PFAS-containing waste streams, with support from the Legislative-Citizen Commission on Minnesota Resources and the state's Environment and Natural Resources Trust Fund.

374Water said Phase 2 involved processing Class A biosolids produced through a low-temperature thermal hydrolysis process supplied by Lystek International. The company said the campaign concluded with processing at solids concentrations of up to 12%, and that all planned sampling had been completed. It added that analysis of the performance data is underway and that initial results are consistent with previous AirSCWO campaigns.

The company said Phase 3 has now begun and will focus on processing pre-anaerobic digestion sludge, an untreated waste stream that it said has previously been processed at its Orlando, Florida operations. According to 374Water, the phase is intended to demonstrate solids reduction of 97% and PFAS reduction of up to 99.99%+, based on results from earlier campaigns.

374Water said multiple biosolid waste streams have been processed during the St. Cloud deployment, with additional waste streams planned as the project progresses.

The company said a successful pilot could support Minnesota's broader evaluation of AirSCWO technology for permanent PFAS destruction. It added that it believes such an outcome could create recurring revenue opportunities, estimating that each mobile AirSCWO unit has the potential to generate between $500,000 and $1.5 million in annual revenue, depending on deployment frequency, waste stream composition, and contract terms.

374Water’s chief operating officer Brad Meyers said the completion of Phase 2 marked another operational milestone for the company's mobile system and highlighted the performance achieved during the campaign.

“As we move into Phase 3 and take on untreated pre-anaerobic sludge - a waste stream we've already processed very successfully in Orlando - we're continuing to prove that mobile AirSCWO can go where the problem exists and perform,” Meyers added.

“This campaign is reinforcing what we're hearing from the market: demand for mobile AirSCWO services is real and growing, and we believe it is opening the door to a meaningful, recurring opportunity with the State of Minnesota and beyond."

374Water said it plans to provide further updates on the St. Cloud pilot, Phase 3 results, and additional mobile deployment opportunities as they become available.

Shares of 374Water added nearly 3.2% on Tuesday morning in New York.