Consolidated Water Receives Key Approval for $204 Million Seawater Desalination Plant Project in Hawaii

News Release from Consolidated Water Co. Ltd., Tue, May 13, 2025

GEORGE TOWN, Cayman Islands, May 13, 2025 -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading designer, builder and operator of advanced water supply and treatment plants, reported that its wholly owned subsidiary, Kalaeloa Desalco LLC, recently achieved a major milestone for its $204 million project to design, construct, operate and maintain a 1.7 million gallon per day seawater desalination plant in Hawaii.

The Honolulu Board of Water Supply, the client for the multi-year project that commenced in June 2023, approved the pilot test reports and recommendations submitted by Kalaeloa Desalco. The Board concluded that the desalinated water the company produced during the piloting phase is a reasonable match to their existing water supply. They also concluded that the desalinated water from the new plant would not cause any detrimental impact to existing distribution pipes or customer assets.

“This significant project milestone helps pave the way to begin construction once all permits have been obtained,” stated company CEO, Rick McTaggart. “The construction phase is expected to generate the largest portion of the revenue from the project and be a major growth driver for our services segment in 2026 and 2027.”

The Hawaiian project involves a two-year development phase, followed by two years of construction. Once completed and commissioned, the company has been contracted to operate the plant under a 20-year operations and maintenance (O&M) agreement, plus two five-year extension options at the discretion of the client.

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About Consolidated Water Co. Ltd.

Consolidated Water Co. Ltd. develops and operates advanced water supply and treatment plants and water distribution systems. The company designs, constructs and operates seawater desalination facilities in the Cayman Islands, The Bahamas and the British Virgin Islands, and designs, constructs and operates water treatment and reuse facilities in the United States. The company recently entered the U.S. desalination market with a contract to design, construct, operate and maintain a seawater desalination plant in Hawaii.

The company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment.

For more information, visit cwco.com.

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This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "intend", "expect", "should", "will" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to (i) continued acceptance of the company's products and services in the marketplace; (ii) changes in its relationships with the governments of the jurisdictions in which it operates; (iii) the outcome of its negotiations with the Cayman government regarding a new retail license agreement; (iv) the collection of its delinquent accounts receivable in the Bahamas; and (v) various other risks such as economic, operational, and industry-specific risks, as detailed in the company's periodic report filings with the Securities and Exchange Commission (“SEC”). For more information about risks and uncertainties associated with the company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the company’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting the company’s Secretary at the company’s executive offices or at the “Investors – SEC Filings” page of the company’s website at ir.cwco.com/docs. Except as otherwise required by law, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.