Energy Recovery Inc. (NASDAQ:ERII), the leader in pressure energy technology for industrial fluid flows, announced the commissioning of its first IsoGenTM system for a gas processing plant owned by the Saudi Arabian Oil Company (Saudi Aramco). This marks Energy Recovery’s largest project to date in the oil and gas industry.
The IsoGen system is a turbogenerator system that recycles otherwise wasted pressure energy and converts it into electrical power. The system allows gas processing plants to reduce their reliance on the power grid by powering their plant with recovered pressure energy powered and recycled through their current operations.
The gas plant will use IsoGen to optimize production and energy consumption. Instead of completely relying on electrical power coming from the utility grid, the plant will now be able to power its operations in part through energy generated and recycled through the IsoGen device. Energy Recovery estimates that the plant should recover up to 450 kW of energy annually.
Energy Recovery’s Chief Financial Officer Mr. Joel Gay, said, “Saudi Aramco has a well-earned reputation for being a forward-thinking company, especially when it comes to emerging technologies. We are thrilled to be working with such a giant in the industry, but not surprised that Saudi Aramco has been the first to recognize the value our technology represents. We have found that gas processors and oil pipeline companies are natural customer segments for our IsoGen™ technology, which fulfills a need to control how much power is drawn from the grid to ensure optimal operations. As with this particular gas plant, we feel that multiple operators endeavor to produce to capacity with less concern about energy consumption or the volatility of market pricing. Our IsoGen system meets these needs by giving operators the opportunity to tap into the often overlooked resource of pressure energy. This installation represents not only a significant point of market penetration, but an important milestone in the evolution of Energy Recovery in our ability to successfully design and deliver viable solutions through a technically complex and elongated sales cycle.”
About Energy Recovery’s Line of Iso Devices
The IsoGen system has also been designed to be a solution for oil pipelines, where downhill flows create excess pressure that can easily be converted into useful electricity. IsoGen is part of Energy Recovery’s larger line of Iso devices, which includes the IsoBoost™, a hydraulic system that also taps into the often overlooked resource of pressure energy. Instead of using that energy to generate electrical power, the IsoBoost helps ensure smooth operations in gas processing plants, offering a hydraulic system that is more economical, safer, and with three times the life of a traditional pump. (Original Source)
Shares of Energy Recovery closed yesterday at $2.59 . ERII has a 1-year high of $6.18 and a 1-year low of $2.49. The stock's 50-day moving average is $3.10 and it's 200-day moving average is $3.98.
On the ratings front, Ardour analyst Jinming Liu downgraded ERII to Hold, with a price target of $3.50, The current price targetimplies an upside of 35.1% from current levels, In a report issued on March 11. The current price targetimplies an upside of 35.1% from current levels
According to TipRanks.com, Liu has a total average return of -3.0%, a 53.8% success rate, and is ranked #2899 out of 3562 analysts.
Energy Recovery Inc is engaged in designing, developing, and manufacturing of energy recovery devices that transform untapped energy into reusable energy from industrial fluid flows and pressure cycles.