During early afternoon trade, the De.mem share price has climbed 1.56% higher to 32 cents.

What did De.mem announce and what does this mean for their share price?

The De.mem share price is on the rise after reporting another contract award in the power generation market.

According to its release, the company advised it has received a purchase order from energy giant, AGL Energy Ltd (ASX: AGL). AGL is one of Australia's largest energy providers and is an integrated company that focuses producing renewable energy.

In addition, AGL retails electricity and gas to both residential and commercial sectors. Its energy is sourced from its diversified power generation portfolio that includes thermal power, natural gas, wind power, hydroelectricity, solar energy and others.

Terms of the deal

Under the agreement, De.mem will deliver water treatment equipment to an Australian power station. This will be used for boilers, turbines, and cooling towers. This allows a power station to run effectively and smoothly. Furthermore, the treated water can be used for AGL's hydroelectricity plants.

The contract is worth around $550,000. However, no details were given in terms of the contract start date and timings.

Continued momentum for De.mem

The latest contract award represents the company's continued momentum in Australian power generation industry.

In September last year, De.mem received a $400,000 purchase order for an ultrapure water treatment system. The contract was considered significant as it represented the company's first revenues, and created a product offering within the sector.

What did the CEO say?

De.mem CEO, Mr Andreas Kroell welcomed the deal, saying:

We are delighted to be growing our presence in the highly attractive Australian power generation segment with high quality institutional clients. The power generation industry is an important target market for De.mem as it requires large volumes of the highest quality treated water for use in boilers, turbines and cooling towers. We look forward to continuing to grow our presence within this segment.

De.mem share price performance overview

The De.mem share price has risen over 35% when looking at its chart over the last 12 months.

Hitting a 52-week low of 10 cents in March, the company's shares began its upwards trajectory. Today, its shares reached within a whisker of its 52-week high of 34 cents achieved just last week.

Based on the current share price, De.mem commands a market capitalisation of roughly $57 million.

The post Why the De.mem (ASX:DEM) share price is climbing higher today appeared first on The Motley Fool Australia.