374Water Inc. (NASDAQ: SCWO) announced a new Waste Destruction Services (WDS) contract with the City of St. Cloud, Minnesota, to eliminate per‑ and polyfluoroalkyl substances (PFAS) from biosolids and water‑treatment residuals using its mobile AirSCWO 1 system. The project will treat undigested and post‑thermal hydrolysis digested biosolids, as well as spent granular activated carbon, and is scheduled to begin in April 2026.
The contract is funded by the City of St. Cloud, the Legislative‑Citizen Commission on Minnesota Resources (LCCMR), and the State’s Environment and Natural Resources Trust Fund (ENRTF). While the deal is a demonstration and evaluation effort rather than a large‑scale commercial contract, it provides a recurring revenue stream that supports 374Water’s growth strategy and helps convert its $1.8 billion backlog into cash flow in 2025 and 2026.
Financially, the project’s direct revenue impact is modest; 374Water’s 2025 revenue target is $4–$6 million and 2026 guidance is $6–$8 million, with this contract contributing a small portion of that pipeline. The announcement, however, was met with a sharp market reaction: the company’s shares fell 25.64% on the day of the announcement, reflecting investor concerns about execution risk and the limited near‑term financial upside of the deal.
Stephen J. Jones, Chairman and Interim President and CEO, said Minnesota’s leadership in addressing PFAS contamination “provides a high‑profile proof point for AirSCWO technology.” He added that the contract “de‑risks the commercial path for AirSCWO by demonstrating non‑detect PFAS destruction in a public‑sector setting.”
The PFAS market is expanding as regulators tighten limits on these persistent chemicals. Minnesota’s new biosolids PFAS strategy, effective September 2025, requires testing and can prohibit land application of high‑PFAS biosolids, creating a growing need for effective destruction solutions. 374Water’s AirSCWO technology, which converts PFAS into safe water, minerals, and heat energy, is positioned to meet this demand as the company builds its WDS operations and mobile fleet across the United
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