Energy Recovery says to wind down CO2 retail grocery business

In a letter to shareholders, Energy Recovery (ERII) announced that it has made the decision to wind down our CO2 retail grocery business effective immediately. “As discussions with customers have evolved in the last several months, it has become increasingly evident that scaled adoption would require significant time, investment, and risk. We believe this investment no longer meets our capital allocation criteria and thus acted quickly in an effort to maximize shareholder value. We expect to generate $7M of annual run-rate savings from the wind down, or 10c in adjusted EPS.”