Energy Recovery Inc.
ERII, the leader in pressure energy technology for industrial fluid
flows, today announced its entry into the hydraulic fracturing (fracking)
market through today's launch of a revolutionary new product at an investor
and analyst event in New York City.
The largest operational challenge facing the fracking industry today is the
constant breakdown of high-pressure pumps caused by abrasive frac fluid
(containing sand and ceramic proppants), which halts operations until the
pumps can be repaired, resulting in lost runtime and lost profits.
Using its proven Pressure Exchanger (PX) technology, Energy Recovery has
engineered the first product of its kind that will entirely protect the frac
pumps from frac fluid, and in doing so, will prevent damage and significantly
reduce the costs and time associated with maintenance, making for a cleaner,
more efficient and cost-effective process.
"We have been deliberate in our efforts to diversify into markets where our
technologies can be deployed to improve the overall efficiency of industrial
fluid flow processes. The fracking industry represents the latest result of
these efforts and further cements Energy Recovery's transformation into a
diversified energy solutions provider. Of all market opportunities being
pursued, fracking presents the greatest combination of size and need. In
analyzing the fracking market, it became immediately evident that onsite pump
failures were a leading cause of downtime and generally, the greatest
challenge faced by Pumpers. In addition to significant maintenance costs, the
frequency of pump failures requires levels of redundancy that further
exacerbate an operationally complex process and impede market growth. Our
solution is an industry-changing technology that not only increases runtime
and reduces operating costs, but more importantly will change the way Pumpers
approach fracking. This is the largest addressable market that Energy Recovery
has entered, and we look forward to providing additional information on the
product itself and customer interest after its official launch later this
morning," said Tom Rooney, CEO of Energy Recovery.
According to PacWest Consulting Partners, the global hydraulic fracturing
services market is estimated to be roughly $50 billion in 2014, and is
projected to grow at a double-digit rate for the foreseeable future. Energy
Recovery's solution presents multiple frontiers of value creation for the
hydraulic fracturing industry.
Immediately, it allows for the reduction of pump maintenance costs and a
reduction in excess capacity required to mitigate pump failures. Eventually,
as the market adopts the technology, it will act as the gateway to new pumping
operating models, all of which represent a step-change in the fracking
paradigm. Energy Recovery's solution empowers both fracking service providers
and well completion engineers with newfound freedom from the pumps they choose
to the fluid they use. Considering just the reduction of pump maintenance
costs and excess pumping capacity, Energy Recovery's solution will avail the
hydraulic fracking industry of more than $1 billion in annual savings. These
savings will materially improve the operating margins of fracking service
providers worldwide.
While the annual global addressable market is estimated to be roughly $1.4
billion, Energy Recovery's initial focus will be on North America, which
presents a market opportunity of approximately $1 billion.
To ensure the solution's longevity in the market place, over the past 12
months, Energy Recovery has filed more than 40 patent applications.
Energy Recovery intends to issue another press release announcing details
about the new product later this morning. Additionally, the Company will
unveil its new technology during today's analyst day in New York City. For
more information please visit the Company's website www.energyrecovery.com.
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