Clean TeQ Water secures FEED contract worth up to A$5.4 million at Syerston Scandium Project
Clean TeQ Water (ASX: CNQ) has been awarded a Front End Engineering Design (FEED) and early works contract by Sunrise Energy Metals (ASX: SRL) for the scandium recovery circuit at the Syerston Scandium Project in New South Wales. The engagement carries a contracted FEED scope of approximately A$2.0 million (ex-GST), plus provisional long lead deliverables of approximately A$3.4 million (ex-GST), bringing the total potential engagement value to approximately A$5.4 million if all deliverables are released.
The award follows completion of Clean TeQ Water’s preliminary testwork and engineering package, announced on 27 January 2026.
The FEED award builds directly on the A$665K scandium engineering contract CNQ secured earlier in 2026, which covered the preliminary testwork and engineering package that forms the technical foundation for the current engagement.
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Breaking down the contract structure
Clean TeQ Water’s scope comprises two of the packages that make up the project: the continuous Resin-in-Pulp (cRIP) ion exchange circuit, underpinned by MBIX (Moving Bed Ion Exchange) technology, and the downstream scandium refinery. The contract advances the engineering design of both circuits, building on the preliminary stage work and supported by confirmatory and optimisation testwork in the company’s laboratories.
The full FEED scope is contracted, with an estimated value of approximately A$2.0 million excluding GST. It is delivered on a schedule-of-rates basis that is firm for twelve months from award, under which Sunrise pays for the hours worked, together with external expenses at cost plus a margin. Revenue from the FEED scope is expected to be recognised substantially in the 2027 financial year.
The long lead deliverables required to protect the project’s delivery schedule are carried at a provisional sum of approximately A$3.4 million excluding GST. These deliverables are expected to be released in tranches during the FEED engagement.
| Component | Value (ex-GST) | Status | Basis | Revenue timing |
|---|---|---|---|---|
| FEED scope | ~A$2.0m | Contracted | Schedule-of-rates | Substantially FY2027 |
| Long lead deliverables | ~A$3.4m | Provisional / uncommitted | Released in tranches at Sunrise’s election | During FEED |
| Total potential | ~A$5.4m | Conditional on full release | — | — |
Several commercial caveats apply to the engagement:
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The stated value is the company’s estimate of the cost of completing the scope, not a fixed or capped amount, and the amount actually invoiced will depend on the hours worked and expenses incurred.
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No part of the A$3.4 million provisional sum is committed at the date of the announcement, with each tranche released only on Sunrise’s written instruction.
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Sunrise may suspend or terminate the engagement, in which case it remains liable for the hours worked to that date and for third-party commitments already placed, and the company would not receive the balance of the estimated value.
What is MBIX and why it matters
Moving Bed Ion Exchange (MBIX) is Clean TeQ’s proprietary ion exchange technology platform, designed to deliver continuous counter-current operation. Unlike conventional fixed-bed systems, which cycle resin through repeated load-and-flush stages, MBIX operates with moving resin beds, allowing higher stage efficiency, improved resin utilisation, and stable performance under variable feed conditions.
According to the company, the advantages of MBIX include:
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Lower water consumption
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Reduced reagent consumption
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More concentrated product streams
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Significantly lower losses of target ions compared to traditional fixed-bed approaches
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The ability to process streams containing suspended solids while maintaining continuous operation without the extended downtime associated with bed cycling
MBIX is the core technology underpinning the contracted cRIP ion exchange circuit, which makes the split of technology rights central to understanding the engagement. Sunrise retains exclusive rights to MBIX for scandium, nickel and cobalt. Clean TeQ Water applies the MBIX technology more broadly in water treatment, industrial processing, and emerging applications across uranium, rare earths and other high-value critical minerals.
The Heathgate uranium installation provided the earliest proof of MBIX technology at commercial scale, with performance testing exceeding all contracted specifications and establishing a working reference for the platform across multiple critical minerals applications.
The investment case for CNQ shareholders
For CNQ shareholders, the contract provides revenue visibility into FY2027 and validates the company’s role as an engineering and technology services provider on a major critical minerals project. The appointment reflects both companies’ long-standing technical collaboration and deep expertise in critical metals recovery, a relationship that reaches back to the earliest development of the scandium flowsheet.
The Syerston Scandium Project hosts one of the world’s largest and highest-grade scandium deposits. Scandium oxide produced by the project will service key technology markets, including fuel cells, advanced aluminium alloys and semiconductors. Sunrise is developing the project with the stated aim of delivering the world’s first source of mineable, high-grade scandium.
Peter Voigt, CEO of Clean TeQ Water
“This award continues a collaboration that reaches back to the earliest development of the scandium flowsheet, and it is a strong endorsement of the work our team has delivered on the project to date. Moving from preliminary work into FEED and early works is a natural next step for both companies and our team is ready to deliver the ion exchange and refinery packages at the scale the project demands. The Company’s track record in delivering advanced ion exchange systems and metallurgical process plants provides a strong foundation for project execution at scale”.
What comes next
The engagement marks a natural progression from preliminary work into the FEED and early works phase for both companies. The confirmatory and optimisation testwork in Clean TeQ Water’s laboratories supports the advancement of the engineering design for both the cRIP ion exchange circuit and the scandium refinery.
The long lead deliverables may be released in tranches during the FEED engagement to protect the project’s delivery schedule, though the company gives no assurance as to the amount, if any, that will ultimately be released. Revenue from the contracted FEED scope is expected to be recognised substantially in FY2027.
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