ATEC Water Systems Secures $12M Contract for Manganese Removal in California

ATEC Water Systems, a subsidiary of Cadiz Inc., has been awarded a $12 million contract to supply 140 filters for manganese removal in the Cascade Groundwater Alliance treatment project in Gresham, California. The filters are expected to be delivered over the next 12 months, supporting the project's goal to expand Gresham's groundwater system and reduce reliance on imported surface water.

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Aqsa Younas Rana
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ATEC Water Systems Secures $12M Contract for Manganese Removal in California

ATEC Water Systems Secures $12M Contract for Manganese Removal in California

ATEC Water Systems LLC, a subsidiary of Cadiz Inc., has been awarded a $12 million contract to supply 140 filters for manganese removal in the Cascade Groundwater Alliance treatment project in Gresham, California. The filters are expected to be delivered over the next 12 months.

Why this matters: The removal of manganese from groundwater sources is crucial for ensuring access to clean and safe drinking water, particularly in communities that rely heavily on groundwater. As the threat of groundwater contamination continues to grow, innovative solutions like ATEC's filtration systems will play a vital role in protecting public health and meeting the increasing demand for clean water.

The Cascade Project is a partnership between the City of Gresham and Rockwood Water People's Utility District, formed in 2020 to expand Gresham's groundwater system and reduce reliance on imported surface water from Portland. The new groundwater system is under construction and will be complete in 2026, serving approximately 100,000 people in Gresham.

"We believe ATEC solutions offer the most affordable and effective water treatment solution on the market to address iron, manganese, arsenic, nitrates, and many other constituents of concern," said Susan Kennedy, Chairman and CEO of Cadiz. "Addressing the growing threat of groundwater contamination is the key to making the human right to water a reality for all. We welcome the opportunity to support the Cascade project and improve access to clean water in Gresham."

ATEC has experienced rapid growth in orders in 2024, propelled by tightening water quality regulatory standards and the need to integrate groundwater into the portfolio of water supply for growing communities. Cadiz acquired ATEC in a 2022 asset acquisition for $2 million and expects gross ATEC segment revenues to reach $15 million in 2024, revised upward from $12 million.

ATEC is a leading producer of specialized water filtration solutions for contaminated groundwater sources. The company has successfully bid on several projects in the last 14 months, including a $10 million contract to provide wellhead filters for the Central Utah Water Conservancy District and the installation of arsenic filtration systems at wells on tribal lands in California.

"ATEC pioneered the first successful municipal iron and manganese removal system using dioxide media, and we've built hundreds over the last 20 years," said Lee Odell, COO of ATEC. Manganese is currently being considered for regulation by the U.S. EPA, as it can cause aesthetic impacts and pose potential risks to public health, particularly for young children and babies.

With the $12 million Cascade Project contract, ATEC continues to establish itself as a leader in groundwater treatment solutions. As communities increasingly turn to groundwater to meet growing water supply needs, ATEC's specialized filtration systems are poised to play a crucial role in ensuring access to clean, safe drinking water for residents in Gresham and beyond.

Key Takeaways

  • ATEC Water Systems wins $12M contract for manganese removal filters in Gresham, CA.
  • Filters will be delivered over 12 months for the Cascade Groundwater Alliance treatment project.
  • Manganese removal crucial for clean drinking water, especially in groundwater-reliant communities.
  • ATEC's revenue forecast increased to $15M in 2024 due to growing demand for water treatment solutions.
  • ATEC's filtration systems address iron, manganese, arsenic, and other contaminants in groundwater sources.