Clean TeQ Water has secured a Clean TEQ Water Syerston Engineering Contract valued at $665,160 with Sunrise Energy Metals (ASX: SRL). The 16-week engagement updates critical engineering designs for the Syerston Scandium Project, with delivery expected in May 2026, positioning CNQ for potential future engineering, procurement and construction opportunities subject to Sunrise’s Final Investment Decision.
Clean TeQ Water wins $665,160 engineering contract for major scandium project
Clean TeQ Water (ASX: CNQ) announced on 27 January 2026 that it has been awarded an engineering services contract by Sunrise Energy Metals to advance the Syerston Scandium Project in central-west New South Wales. The binding agreement, valued at $665,160, requires CNQ to update and refine engineering designs from the 2016 and 2025 feasibility studies, specifically focusing on the continuous Resin-in-Pulp circuits and refinery circuits.
The scope centres on CNQ’s proprietary Moving Bed Ion Exchange (MBIX) technology, which will underpin the scandium recovery process. Engineering work commenced immediately upon contract execution, with completion scheduled for May 2026. The updated designs will form part of Sunrise’s broader investment readiness package and directly inform the company’s Final Investment Decision for the project.
The contract represents near-term revenue generation whilst establishing CNQ’s technical credentials for substantially larger opportunities. Sunrise Energy Metals recently announced a material increase in scandium inventory at Syerston, which the company stated substantially enhances project economics. This inventory expansion increases the likelihood of a positive FID and the potential scale of future construction work.
What scandium is and why investors should care
Scandium is a critical mineral classified as a rare earth element, primarily used in high-performance aerospace alloys, defence applications, and advanced materials. When added to aluminium in small quantities (typically 0.1-0.5%), scandium dramatically improves strength, heat resistance, and weldability, making it essential for aircraft components and military equipment.
The Syerston Scandium Project hosts one of the world’s largest and highest-grade primary scandium resources on a granted mining lease. Unlike secondary scandium sources (derived as a by-product from other mining operations), Syerston offers a standalone primary resource, providing supply certainty and scale advantages. Sunrise Energy Metals has positioned the project as a potential long-term supplier of high-purity scandium oxide to global advanced materials markets.
Growing demand across aerospace, defence, and emerging energy applications, combined with limited global supply, has elevated scandium’s strategic importance. The recent inventory increase at Syerston enhances the project’s commercial viability and underscores its relevance within the broader critical minerals investment theme.
Clean TeQ’s MBIX technology at the heart of the contract
The engineering update centres on CNQ’s proprietary Moving Bed Ion Exchange (MBIX) technology, which will be applied to the scandium recovery circuits. MBIX represents a continuous counter-current ion exchange platform designed for superior efficiency compared to conventional fixed-bed systems. The technology operates with moving resin beds rather than stationary columns, enabling higher stage efficiency, improved resin utilisation, and stable performance under variable feed conditions.
Key advantages of MBIX for the Syerston application include:
- Lower water consumption: Reduced freshwater requirements compared to traditional batch processes
- Reduced reagent consumption: More efficient chemical usage through continuous operation
- More concentrated product streams: Higher-grade outputs requiring less downstream processing
- Continuous operation: Eliminates extended downtime associated with bed cycling in fixed-bed systems
- Solids tolerance: Ability to process streams containing suspended solids without performance degradation
Whilst Sunrise Energy Metals retains exclusive rights to MBIX technology for scandium, nickel and cobalt applications, Clean TeQ Water applies the platform more broadly across water treatment, industrial processing, and emerging critical minerals recovery, including uranium and rare earths. This diversification provides multiple commercialisation pathways for the technology beyond the Syerston engagement.
The contract scope requires CNQ to update both the Resin-in-Pulp circuits and refinery circuits, ensuring the engineering aligns with Sunrise’s enlarged scandium inventory and current project economics. The $665,160 contract value reflects the technical complexity and strategic importance of these updates.
Strategic pathway to larger opportunities
The current engagement positions Clean TeQ Water for materially larger contracts subject to Sunrise reaching a positive Final Investment Decision. Whilst no commitment currently exists for CNQ to provide engineering, procurement and construction (EPC) services, the company’s track record in delivering advanced ion exchange systems and metallurgical process plants provides a competitive foundation for project execution at scale.
| Element | Current Status | Timeline | Significance |
|---|---|---|---|
| Engineering Contract | Binding, underway | May 2026 delivery | $665,160 revenue |
| Sunrise FID | Pending | Post-May 2026 | Triggers larger opportunity |
| Future EPC Work | Subject to negotiation | To be determined | Substantially larger value |
The relationship between Clean TeQ Water and Sunrise Energy Metals reflects long-standing technical collaboration and mutual expertise in critical metals recovery. CNQ’s appointment to update key engineering elements validates the company’s technical capabilities and positions it as the preferred partner for subsequent project phases, assuming Sunrise proceeds with development.
Any future EPC engagement would be subject to separate contractual arrangements and approvals. However, successful delivery of the current engineering work by May 2026 strengthens CNQ’s competitive positioning for these materially larger contracts. The updated designs will inform Sunrise’s FID decision and subsequent development strategy.
CEO perspective on strategic value
Management Commentary
“We are delighted to work with Sunrise on this pivotal phase of the Syerston Scandium Project. The increased scandium inventory underscores the project’s growing strategic relevance, and this contract exemplifies our core strengths in critical metals process design. We look forward to supporting Sunrise through FID and beyond,” said Peter Voigt, Chief Executive Officer of Clean TeQ Water.
The CEO’s statement reinforces CNQ’s positioning within the critical minerals sector and highlights the strategic nature of the engagement. The reference to supporting Sunrise “through FID and beyond” signals management’s expectation of continued involvement in subsequent project phases, contingent on a positive investment decision.
What happens next for Clean TeQ Water
The engineering work commenced immediately following contract execution and will continue through the first half of 2026. The report outputs will be delivered in May 2026, providing Sunrise Energy Metals with updated technical information to inform its Final Investment Decision.
The progression pathway includes:
- Engineering work continues through Q1-Q2 2026
- May 2026 delivery of updated designs and technical reports
- Sunrise reviews outputs as part of broader FID assessment
- Potential future EPC engagement negotiations subject to positive FID
Clean TeQ Water remains engaged to support further engineering and EPC delivery phases. The $665,160 contract is a binding engineering services agreement not conditional on Sunrise reaching a Final Investment Decision. There are no material termination provisions, and the agreement is subject to standard commercial terms typical of contracts of this type.
For investors, the near-term revenue provides modest financial contribution whilst the strategic positioning for larger future work represents the primary value driver. Monitoring Sunrise Energy Metals’ FID announcements post-May 2026 will be critical to assessing the likelihood and potential scale of subsequent CNQ engagement. The company’s track record in delivering complex ion exchange systems and metallurgical process plants positions it favourably for project execution should Syerston proceed to construction.
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