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H2O Innovation Inc. has acquired Virginia-based NextEra Distributed Water in a carve-out transaction, adding its sustainable wastewater treatment and reuse projects to the Quebec City-based company’s water treatment technology umbrella.
NextEra’s products and projects will operate as H2O Innovation’s water infrastructure and development business line.
The two companies have had a commercial partnership for years, with H2O Innovation using NextEra’s WaterHub assets which are wastewater treatment and reuse facilities. The wastewater recycling systems are said to reduce water consumption and effluent, cutting costs and helping water-stressed communities.
WaterHub has also been used in hospitals and universities, as well as commercial and industrial sites.
“This acquisition is a significant milestone for H2O Innovation,” Frédéric Dugré, president and CEO of H2O Innovation, said in a release. “The holistic approach to sustainable water management offered by WaterHubs aligns seamlessly with our core values and expertise.”
The financial terms of the acquisition were not released, but it is supported by follow-on investment from funds managed by H2O Innovation’s majority owner Ember Infrastructure Management, LP, and minority owners such as Caisse de dépôt et placement du Québec and Investissement Québec.
H2O Innovation’s primary offering is a membrane filtration system that treats water, using filters and reverse osmosis instead of chemicals.
What the acquisition means for both parties
The Canadian company will use the transaction to fold in NextEra’s large-scale asset development and ownership capability in-house, it said, toward the goal of building a “leading water infrastructure solutions company and offering a new set of innovative financing solutions for its clients across North America.”
An example of NextEra’s work is detailed in a case study with Philip Morris in Richmond, Va., where WaterHub is expected to slash total potable water use by approximately 40 per cent and decrease total wastewater discharge by up to 70 per cent.
H2O Innovation said NextEra’s team has extensive experience in water and energy management strategies such as biological and process water treatment, water-based heat transfer and central utility plant operations.
On the financing side, WaterHub offerings are said to complement H2O Innovation’s mobile water treatment systems that are offered under short- and long-term leases.
NextEra, a company formerly named Sustainable Water, was acquired by Juno Beach, Fla.-based NextEra Energy Resources in 2022.
The new water infrastructure and development business line will be managed by Casey Allen, the former senior director of distributed water at NextEra, who is now vice president and managing director. The rest of the leadership team from NextEra will be carried over as well, H2O Innovation said.
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