Gen 2 Revenue
Q: What are Gen 2 revenue targets?
A: Management expects the Gen 2 system to generate about $10 million annually in late 2025, potentially rising to $20 million in 2026, reflecting a cautious but promising outlook.

DFLAW Volumes
Q: What are initial DFLAW volumes?
A: DFLAW is anticipated to start hot commissioning in summer 2025, with early operations likely producing a couple of million dollars monthly as volumes gradually ramp up.

Tank Waste Extraction
Q: When will tank waste extraction begin?
A: The design calls for approximately 3.5M gallons/year of waste, with operations starting in December 2025 and our expected share at around half that volume over 15 years.

Settlement Agreement
Q: How does the settlement affect DFLAW?
A: The rates are set through WRPS, ensuring DFLAW operates with a long-term commitment through 2060 and a minimum engagement of 10 years, reinforcing a stable revenue foundation.

PFAS Q4 Revenue
Q: What PFAS revenue is expected in Q4?
A: Forecasts are conservative, anticipating close to $1 million in Q4 from PFAS operations, based on processing roughly 700 gallons per day.

PFAS Partnerships
Q: What partnerships are in place for PFAS?
A: Management has established collaborations with universities, complementary competitors, large firms, and federal agencies to build a robust PFAS treatment program.

Capital Investments
Q: What CapEx is planned?
A: Planned capital expenditures total around $11 million for upgrading systems across PFAS and other facilities, alongside short-term maintenance allocations.

Backlog Trends
Q: How is the backlog evolving?
A: There is a clear uptick with strong receipt trends in Q3, multiple service bids underway, and expectations for improved revenue by Q4 moving into next year.

Richland Readiness
Q: Is the Richland plant ready?
A: New system designs and permit modifications are in progress at Richland, positioning the facility to handle higher volumes by 2026.

RTO Repair
Q: What was the RTO repair cost?
A: The Florida plant’s RTO repair was handled as a maintenance expense of about $100K, allowing operations to resume smoothly.

PFAS Licensing
Q: Could PFAS technology be licensed?
A: Licensing is being considered for after 2025 once the Gen 2 system is fully proven and performance data is solidified.

OSMS Update
Q: Any update on OSMS?
A: There is still no new information on OSMS, with delays continuing and details remaining undisclosed.

International Opportunities
Q: What’s the status internationally?
A: Efforts in Europe are progressing with bids in Hungary, Norway, and Italy, while new projects in Canada and Mexico are expected to start shortly.

Hanford Timeline
Q: Any changes in Hanford timing?
A: Despite minor cold commissioning delays, hot commissioning for Hanford remains on track as DOE shows strong optimism for progress.

Trucking Permits
Q: Are permits required for trucking waste?
A: Yes, shipping untreated radioactive liquid waste requires permits at state and local levels, highlighting higher risks compared to rail transport.

ITDC Legal Impact
Q: What about the ITDC lawsuit?
A: The lawsuit may influence procurement timing, but it is unlikely to affect the DFLAW startup since Bechtel is managing its operations.

Small Business Requirement
Q: What’s the small business quota?
A: At least 20% of the cumulative value under the ITDC must be subcontracted to small businesses, which benefits PESI.

U.K. Plant Update
Q: What is the U.K. plant status?
A: Discussions with Westinghouse are ongoing, with the aim to establish a U.K. facility within about 18 months, subject to evolving market conditions.

Gen 2 Fabrication Time
Q: How fast can Gen 2 be built?
A: Once the design is finalized, the Gen 2 unit can be delivered and installed in roughly 12 weeks from contract sign-off.