Chariot Ltd on Monday said it will acquire independent water producer ENEO Water PTE Ltd for $1.0 million.
Chariot is an Africa-focused transitional energy company, while ENEO Water focuses on clean water solutions using renewable energy.
The acquisition will be paid via an initial $500,000 cash consideration on completion of the sales agreement, plus a further deferred consideration of up to $500,000 payable based on closing further projects.
The deal complements Chariot’s transitional power and green hydrogen businesses within the context of increasing water scarcity across Africa, it said.
It said ENEO utilises an ‘efficient, modular and scalable’ reverse osmosis technology, which can be 100% powered by solar energy to produce desalinated water.
Chariot said its intention is to provide affordable access to water for private offtakers and municipalities across the continent, as part of its socially responsible development commitment.
This includes plans to originate, invest in and own decentralised water supply projects, where the water is produced through renewable energy and can be sold to off-takers under long-term agreements.
It also said a proof-of-concept project at the largest wind farm in Djibouti is under construction, claiming this would provide local communities access to potable water for the next 20 years.
‘Water is a precious commodity with cleanliness, scarcity and sustainability of supply becoming growing themes throughout Africa,’ said Head of Transitional Power Benoit Garrivier.
‘This acquisition of ENEO is a strong strategic fit for Chariot with the renewable power and water sectors sharing similar geographic and off-take markets.
‘The treatment of brackish and contaminated water is an important consideration for commercial and industrial companies and desalinated water is also an important component of green hydrogen production, so we also have a natural overlap within our current portfolio and network.’
Shares in Chariot were down 1.1% to 15.93 pence each in London on Monday at midday.
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