The Fluence Corporation Ltd (ASX: FLC) share price is up 10% in late afternoon trading. That puts the company in the enviable position of being among the biggest gains posted on the All Ordinaries Index (ASX: XAO) today, with the All Ords down 1.8%.
The share price surge comes following today's update on the company's Ivory Coast water treatment project. And it will come as welcome news to shareholders who've watched the share price slide for much of the year.
With today's gains, the Fluence share price is down 50% year-to-date. That compares to a 10% loss for the All Ords.
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What does Fluence do?
Fluence is involved in the decentralised water, wastewater and reuse treatment markets. Its smart products solutions include Aspira, NIROBO and SUBRE. The company's range of services range from early stage evaluation to design and delivery through to ongoing support and optimisation of water related assets. Fluence operates in 70 countries, with established operations in North America, South America, the Middle East, Europe and China. It aims to help businesses and communities make the most of their water resources.
Why did the Fluence share price leap higher?
Fluence announced that the Israel Discount Bank had confirmed the final conditions precedent for the 165 million euro (AU$275 million) Ivory Coast water treatment plant. The Ivory Coast finance facility will now begin funding contractual payments to Fluence for the plant.
Fluence plans to start construction immediately. The surface water treatment plant will be capable of treating 150,000 cubic metres of water daily. It will treat contaminated water from Lagune Aghein, the biggest freshwater reserve in Ivory Coast, helping to supply fresh water to Abidjan, the nation's most populous city.
Commenting on the news, Fluence CEO Henry Charrabe said:
Despite challenging logistics and COVID-19 related delays, we are very pleased to have been able to meet this key milestone to progress the Ivory Coast Project and to officially commence construction. This is an immensely important project for the people of Ivory Coast, and we look forward to now fully mobilising.
