Orege (PA:OREGE) has developed a proprietary technology that reduces sludge treatment costs for clients by up to 80% and implies average payback periods of less than three years. FY18 appears to be an inflection point for Orège, with a large pick-up in order intake. Although the early stage of commercial development implies risks, we believe there is large valuation upside if Orège can establish its technology as industry standard.
Significant economic and environmental benefits
Orège operates in the global wastewater equipment market ($9.5bn per year market size with 5–6% annual growth). Orège has developed a proprietary and patented technology (Solid Liquid Gas, SLG) that reduces sludge treatment costs for utilities by up to 80%, with a strong investment case for its clients (payback periods of less than three years). In addition to large economic savings, SLG drives important environmental sustainability advantages to the sludge treatment process (lower energy use and volumes transported, improved sludge quality, etc). Over the last few years Orège has developed several successful references for various applications and geographies and is now ready to achieve its full commercial potential, particularly in the UK and North America. Client feedback on the technology strongly supports the effectiveness of the SLG technology.
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