HydroWorks: deals poised to flow as Kiwi innovation attracts strong international interest
A new strategic direction paves the way for growth as HydroWorks chases a bigger slice of the Asia-Pacific market.
The Canterbury based engineering business specialising in the design and manufacture of hi-tech equipment and support for the hydro-generation industry is close to securing its second major contract and will set new revenue records in the coming year.
Dean Johnson, HydroWorks CEO, says that the company’s design smarts and newly acquired manufacturing capability has created an innovative solution that competes very favourably with international competitors.
“HydroWorks has a world class design/build capability at a price point that is unique in Asia-Pacific, and the market is responding really well.
“We have recently won a large multi-million dollar contract, the largest in our history, and are in the final stages of negotiation for another. We have many bids underway.”
HydroWork’s smart designs are underpinned by advanced computational fluid dynamic analysis software, which came out of Dr Ian Huntsman’s research at the University of Canterbury. This know-how enables HydroWorks to extract the maximum efficiency from a water driven turbine.
“Greater efficiency leads to higher generation capacity, which can lead to higher revenue and profit.
“Some of the jobs we are currently working on have produced efficiency gains of up to 30 percent. This creates enormous financial benefits for customers,” says Johnson.
HydroWorks Chairman John Errington says that HydroWorks is strongly positioned for a double win across two major revenue streams.
“As well as the many maintenance opportunities for existing hydro infrastructure in Australasia and the Pacific, there is a growing awareness and appreciation for renewable energy generation,” says Errington.
In 2010, HydroWorks attracted the attention of IP investor Powerhouse Ventures, (currently a 23.2 percent shareholder). Since then, with the support and guidance of Powerhouse, HydroWorks refined its business strategy, raised capital and purchased the precision engineering division of Mace Engineering, creating the end-to-end offering which has set the platform for growth.
Stephen Hampson, Powerhouse managing director and HydroWorks board member says that HydroWorks is delivering on its potential.
“HydroWorks delivers world class turbine design/build capability. It’s well positioned to benefit from the distributed generation trend and provide ongoing services to local hydro installations requiring significant capital and maintenance expenditure,” says Hampson.
Dean Johnson says that HydroWorks is capital raising to grow and looking to hire in all areas.
“Our plans are ambitious. We need capital and top quality people. We are partway through a capital raising, part of which will be via trans-Tasman equity crowd funding platform Equitise and are planning further fundraising next year. There is a lot of opportunity and HydroWorks has a strong competitive offering. It is a really exciting time for our company.”