As you know, Dutch Clean Tech’s ambition is to provide clean water to as many people in the world as possible. With our water treatment plants, we want to be more than a drop in the ocean. We want to make a real impact; that is our mission and promise. As a shareholder or bond holder, you contribute to that goal. We would like to keep you updated about the progress of our activities. In this April 2023 Investor Update, we report the following highlights.

 

Focus areas

Presently, we are focusing on Central Asia (Kazakhstan), Central America (Guatemala, Panama) and Mexico. In recent months DCT has opened its own offices and appointed local representatives in these areas. Local stakeholders have been identified, contacts established and networks have been built and maintained with decision-makers in lower and central governments up to the level of governors, ministers and prime ministers. Local presence is essential, as is building relationships and mutual trust. In doing so, Dutch Clean Tech collaborates with local advisers who are able to bring DCT to the table of crucial stakeholders.

Legal anchoring

DCT has formed a good understanding of national legislations to operate successfully in various countries. For example, the laws and regulations for each country have been mapped around issues such as legal entities, discharge requirements and participation in tenders by governments. Local legal experts have provided DCT with the required starting position with which we can now qualify as a full-fledged business partner and investor in sewage and water treatment plants. DCT is thus ready to actually do business in these countries. Our business model has been tailored to comply with the laws of various countries.

Growing interest

DCT plans to invest a total of €200 million by 2023. Interest in DCT has increased considerably. Numerous requests for information have been received and, more importantly, requests for offers from various government organizations and commercial parties. Discussions are ongoing with several municipalities and regional authorities, feasibility studies are in progress, and draft contracts have been submitted. Local DCT staff are studying discharge options, assessing the situation on-site as well as the possibilities of working in cooperation with DCT in the Netherlands on concrete proposals.

Concrete pilot projects and more

Concrete plans are also now in place for pilot projects involving sewage treatment plants. Such projects are planned in Mexico, more precisely in Cancun, and around some rivers on the US border. The municipality of Cancun has confirmed interest in a wastewater treatment plant. DCT is also working on pilots in Kazakhstan. We plan to report more on this in subsequent updates.

Developments with commercial parties

DCT has promising contacts in Mexico with commercial parties supplying clean water to industry. They want to take the municipal sewage water treated by DCT and resell it to factories. This approach is promising, especially in areas where clean water is scarce. Discussions are also ongoing with Nestlé in Panama. Here, they involve the realisation of a drinking water treatment plant. An interesting aspect of the contacts with commercial parties is that the processes run more smoothly because time-consuming public tendering procedures can often be omitted by these parties.

Also interesting: biogas

As a water expert, Dutch Clean Tech is increasingly receiving requests from parties interested in water treatment. But we are also approached for other technological innovations. For instance, at the request of the municipality of Mexico City, Dutch Clean Tech is working on a plan to invest in and build a biogas plant at a 327-hectare market where 90,000 Mexicans sell their wares to half a million visitors a day.

The idea is to process some of the large organic waste streams from this mega-market in this biogas plant. This will generate fuel for a factory to be built to produce tortillas at low prices for local population with low purchasing power. At first this will be a small biogas plant. If this proves a success, a larger plant is expected to be built to process more ‘green’ waste. Then they also want a sewage treatment plant so that the whole market becomes circular by reusing water and recycling waste streams for fertilizer and energy. Again, Dutch Clean Tech applies the innovative financing concept where local governments pay for use.

Solid foundation in focus countries

In short, Dutch Clean Tech has laid a solid foundation in the focus countries. The seeds have been sown; the first plants are growing and receiving water and nutrition, awaiting the first fruits. It is now mainly a matter of making contacts, providing quotations and making plans, after which the wait is for the first actual sales. There are noises from various countries that Dutch Clean Tech’s offers are very good value for money. Thanks to its knowledge and experience and by using innovative technology, DCT is even half the price of some local suppliers in project costs and CAPEX.