Iofina, the London-listed iodine producer and specialty chemicals group, has struck an agreement with US pipeline operator Western Midstream Partners to develop what will become the company’s largest IOsorb® iodine extraction plant, marking its first move into the Permian Basin.

Under the terms of the deal, Iofina will deploy its WET IOsorb® technology to process Western Midstream’s produced water, extracting iodine for commercial sale. The proposed facility, to be built, financed and operated by Iofina, will be capable of handling roughly 50,000 barrels of brine per day – twice the throughput of the company’s existing plants. Capital expenditure is estimated at $8mn–$9mn.

Iofina expects the site to deliver annual output of 170–220 tonnes of crystalline iodine once operational, making it the group’s largest single contributor to production. Western Midstream will supply up to 50,000 barrels a day of produced water in return for a royalty on the plant’s output; the water will be returned to the midstream operator for disposal, transport or recycling after iodine extraction.

Western Midstream, among the largest handlers of produced water in the Permian and now owner of Aris Water Solutions, is expanding its footprint in recycling and beneficial reuse, a growing priority in a basin where water-to-oil ratios can reach 11:1 and total oil output accounts for nearly half of US crude production.

Site preparation is expected to begin by the end of 2025, with the plant targeted to come online in the second half of 2026.

Dr Tom Becker, Iofina’s chief executive, said the partnership offered a platform for further expansion in the Permian. :

“The ability to double brine-water capacity to 50,000 barrels per day will be a step-change for Iofina and will help accelerate our crystalline iodine production strategy.”

Western Midstream chief executive Oscar K. Brown said the project would support the company’s efforts to scale produced-water reuse technologies in the region. “The magnitude of produced water coming from the Permian Basin will require an all-of-the-above approach.” he said, noting Western’s role in managing more than 2.7mn barrels of water per day.