Fluence (ASX: FLC) Wins First C-MABR Contract with Strategic Partner QSY in China

Important first containerised C-MABR smart packaged plant win with
QSY is part of a longer term strategic relationship

• Fluence and QSY have signed a binding agreement to design, build and
  operate a commercial fully containerised MABR smart packaged plant in
  Henan Province
• This project is part of a broader cooperation agreement between
  Fluence and QSY covering three provinces in China
• Fluence’s MABR technology was pre-selected by the local government
  authority for its ability to consistently meet Class 1A effluent
  standards, lower operating costs and reduced maintenance requirements
• This is another example of Fluence’s growth in the rural wastewater
  treatment market in China, representing an estimated US$2.6B in rural
  wastewater treatment sales in the three provinces alone covered by
  QSY, over the next five years and further proof of its Smart Packaged
  MABR business model for the rural wastewater treatment market in China.

MELBOURNE, Australia & NEW YORK–(BUSINESS WIRE)–Fluence Corporation Limited (ASX:FLC) (“Fluence” or the “Company”), a
global leader in water and wastewater treatment solutions, today
announced that it has executed a binding agreement with Qingshuiyuan
Environmental Company (“QSY”) to design, build and operate its first
commercial, fully packaged, containerised C-MABR plant with a capacity
of 300,000 liters/day. The system is expected to be commissioned by
December 2017 in Luoyang City, Henan Province in China.

This is an important signing as part of a broader long-term cooperation
agreement between Fluence and QSY and follows a Memorandum of
Understanding entered into in May this year. The cooperation agreement
aims to promote Fluence’s advanced MABR technology and establish a close
strategic cooperation relationship with QSY covering the Xinjiang, Henan
and Sichuan Provinces, and other areas in China. Both parties are
working closely on project site selection and technology optimization.

“We are excited to announce our first Smart Packaged C-MABR project with
QSY,” said Henry Charrabé, Managing Director and CEO of Fluence. “This
project follows the MoU entered into with QSY in May this year and
reinforces our belief that customers in China are increasingly
interested in our low-energy, high-efficiency MABR wastewater treatment
solutions. This project is part of the long-term cooperation agreement
that covers Henan, Xinjiang and Sichuan provinces. It demonstrates that
our business model to provide fully designed, Smart Packaged Plants
rather than merely the MABR modules alone is well positioned to
capitalize on the enormous market opportunity in China, where the total
revenue potential for our MABR solutions for the rural market in Henan
Province alone is estimated at over US$1 billion. We appreciate the
confidence QSY has placed in Fluence and look forward to securing more
projects with QSY and our other strategic partners in China in the
future.”

“Qingshuiyuan Group is committed to the development of the whole
industry chain in environmental protection,” said Mr. Yonghui Liu,
General Manager of QSY (Shanghai). “The cooperation with Fluence aims to
develop upscale, smart and lower operating cost wastewater treatment
solutions that produce high quality Class 1A effluent for the China
rural market. We believe that our cooperation will bring new
technologies and ideas to sewage treatment for Chinese towns and
villages.”

According to the agreement, Fluence will provide QSY the system design
and the smart packaged C-MABR configuration, manufactured at Fluence’s
production facility in Changzhou, Jiangsu Province, China. QSY will
integrate Fluence’s smart packaged C-MABR into the overall wastewater
treatment plant and construct the village collection system.

Fluence’s MABR solution was pre-selected as the technology of choice
based on its superior ability to consistently meet class 1A effluent
standards and its significantly lower energy and maintenance needs,
which results in more than 50% lower operating cost compared to
conventional extended aeration technologies and MBR.

About Qingshuiyuan Environmental Company

Qingshuiyuan Environmental Technology Co. Ltd ("QSY") is a wholly owned
subsidiary of Henan Qingshuiyuan Technology Co. Ltd. QSY is an
integrated company which specializes in environmental engineering
investment and operation. The Company focuses on the treatment of urban
and rural sewage, industrial water and zero emissions. QSY's business
scope covers organic solid waste disposal, oily sludge and other
hazardous waste treatment, river restoration, contaminated soil
assessment and remediation.

About Fluence Corporation

Fluence Corporation’s vision is to become a leading global provider of
fast-to-deploy decentralized and packaged water and wastewater treatment
solutions, a market estimated to grow to US$22B by 20211.

Fluence has experience operating in over 70 countries worldwide and
employs more than 300 highly trained water professionals around the
globe. The Company provides local, sustainable treatment and reuse
solutions while empowering businesses and communities worldwide to make
the most of their water resources.

Fluence offers an integrated range of services across the complete water
cycle, from early stage evaluation, through design and delivery to
ongoing support and optimization of water related assets. With core
operations in the Americas, the Middle East and Europe, one of Fluence’s
main focuses is expanding into the vast market in China for rural
wastewater treatment.

For more information please visit our website: https://www.fluencecorp.com.

1 Sources: MarketandMarkets Analysis, Global Water
Intelligence, company estimates

Contacts

Fluence Corporation Limited
USA
Henry Charrabé,
+1 212 572 3766
President & CEO
[email protected]
or
USA
The
Blueshirt Group
Gary Dvorchak, +1 (323) 240-5796
+86 (138)
1079-1480
CFA, Managing Director
[email protected]
or
Australia
NWR
Communications
Simon Hinsley, +61 401 809 653
Director
[email protected]
or
USA
Richard
Irving, +1 408 382 9790
Executive Chairman
[email protected]
or
Australia
Ross
Kennedy, +61 409 524 442
Company Secretary & Advisor to the Board
[email protected]