Anaergia and East County JPA Expand Water Purification Project

Anaergia and East County Advanced Water Purification Joint Powers Authority Expand Project Scope with New Change Order

Anaergia Inc. (“Anaergia,” “the Company,” “us,” or “our”) proudly announces a major expansion in its ongoing collaboration with the East County Advanced Water Purification Joint Powers Authority (“JPA”) through its subsidiary, Anaergia Technologies LLC. This expansion is being formalized through a newly secured change order that calls for the delivery of additional engineering services and critical equipment supply as part of the larger, transformative water infrastructure project currently underway in East San Diego County.

The latest change order builds upon the foundation of the original contract that Anaergia disclosed publicly on July 18, 2023. Under the original agreement, Anaergia was engaged to support the development of a state-of-the-art water purification facility located in Santee, California. Now under construction, the facility is projected to become operational before the close of 2026, marking a significant milestone in Southern California’s efforts to address water security and sustainability challenges.

With this change order, Anaergia anticipates an increase of approximately C$8.6 million in revenue derived from the project, highlighting both the scale and importance of the work to be undertaken. The Company’s strengthened involvement reflects growing recognition of its expertise in providing sustainable and innovative solutions for resource recovery and clean energy generation.

Expanded Scope and Key Deliverables

The new scope of work specified by the change order includes procurement of long-lead time components critical to the facility’s function and efficiency. Specifically, Anaergia Technologies LLC will be responsible for acquiring and supplying a comprehensive gas treatment system, combined heat and power systems (CHPs), and essential electrical equipment.

The gas treatment system plays a pivotal role in the project’s overall design. It is engineered to cleanse biogas that is generated by the anaerobic digesters on site. Once purified, the biogas will serve as the primary fuel for the facility’s CHP units. These CHP systems will then generate electricity and thermal energy required to power various operations within the water purification plant. This energy self-sufficiency model will help the facility minimize its reliance on external energy sources, driving down operational costs significantly while advancing environmental sustainability goals.

The importance of securing these long-lead components early cannot be overstated. Given the current complexities in global supply chains, early procurement mitigates potential risks of project delay, ensuring that the construction and commissioning schedules remain on track.

Strategic Value to East County’s Water Future

Mark Niemiec, Director of the East County Advanced Water Purification JPA, emphasized the broader significance of the development, stating, “This development is an important step as we pursue our goal of providing a new source of high-quality water, while reducing operating costs by generating energy on-site, which ultimately benefits the JPA’s ratepayers. This early work package will help us accomplish this mission in the most cost-effective manner possible.”

Indeed, the East County AWP Program represents one of the most ambitious regional water recycling initiatives in California. Upon completion, it will create a reliable, drought-proof water supply by recycling wastewater into purified drinking water. In a region where water scarcity and reliance on imported water have long been challenges, the project promises to bolster resilience and promote local water independence.

Not only does the project offer environmental benefits through water reuse, but its integration of energy recovery systems aligns perfectly with California’s climate action and sustainability targets. By using onsite-generated renewable energy to run the purification plant, the JPA is setting a model for how future infrastructure can simultaneously address both water and energy needs in a circular, resource-positive manner.

Anaergia’s Role in Accelerating the Clean Energy Transition

Anaergia’s contribution to the project aligns seamlessly with its mission of leading the global transition to clean energy by transforming waste into valuable resources. Speaking on the significance of the expanded contract, Assaf Onn, CEO of Anaergia, noted, “This change order with the JPA leverages Anaergia’s suite of integrated solutions. It exemplifies how we work with customers to pursue our mission of accelerating the world’s clean energy transition by transforming waste into valued resources.”

Founded with a commitment to providing technological solutions that deliver environmental, economic, and social value, Anaergia has built a reputation for engineering and implementing advanced systems for waste recovery, renewable energy production, and carbon reduction. In this project, the Company’s ability to deliver comprehensive, turnkey solutions—from digester gas treatment to energy generation—demonstrates its capacity to address complex infrastructure needs with integrated and innovative approaches.

Broader Industry Context and Market Implications

This project is emblematic of larger trends driving infrastructure development globally. Governments and utilities are increasingly investing in projects that not only provide essential services but do so in a sustainable, resource-efficient manner. By integrating water purification and renewable energy production, the East County AWP Program represents a future-forward model that other regions are likely to emulate.

Furthermore, the successful execution of this expanded contract could position Anaergia to capture additional opportunities as municipalities and industries around the world seek to build resilient infrastructure that meets the dual challenges of climate change mitigation and resource scarcity.

The financial significance of the new change order is also notable. The additional C$8.6 million in expected revenue bolsters Anaergia’s project backlog and underscores the Company’s robust pipeline of high-quality, high-value contracts. Such projects contribute to sustainable long-term growth and enhance shareholder value by reinforcing the Company’s leadership position in the rapidly expanding waste-to-resource sector.

About the East County Advanced Water Purification Program

The East County Advanced Water Purification Program is a collaborative effort led by the East County Advanced Water Purification Joint Powers Authority. This regional partnership includes multiple agencies working together to develop a facility that will produce up to 11.5 million gallons of purified water per day—enough to meet approximately 30 percent of the potable water needs for participating communities.

By creating a locally controlled water supply and significantly reducing reliance on imported water, the program helps protect the region against future droughts and increases resilience to climate variability. Moreover, the project will significantly reduce wastewater flows to the ocean, improving environmental outcomes for the region as a whole.

Anaergia was founded with the goal of eliminating a major source of greenhouse gases by cost-effectively turning organic waste into renewable natural gas, fertilizer, and water. Its proven, proprietary technologies uniquely enable the Company to integrate processing of wastewater, food waste, agricultural waste, and biosolids in a single platform, creating renewable energy while reducing greenhouse gas emissions and landfilling.

Anaergia has successfully delivered sustainable solutions to customers on four continents, across the municipal, industrial, commercial, and agricultural sectors. Its extensive track record and strong technological portfolio position it as a leader in the global movement toward circular economy principles and carbon neutrality.

As construction continues on the East County Advanced Water Purification Facility, Anaergia and its partners remain committed to delivering an exemplary project that meets the highest standards of engineering excellence, sustainability, and community benefit. The additional scope secured through this change order reflects the trust that the JPA has placed in Anaergia’s capabilities and vision.

By combining water purification with onsite energy generation, the project not only ensures more sustainable water supplies but also points the way to an integrated, climate-resilient infrastructure future. Anaergia is proud to be at the forefront of this transition, supporting communities in California and around the world to realize the promise of sustainable development.

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