ThermoEnergy Corporation has announced the signing of a contract to deliver ThermoEnergy's first commercial frack water production system to an oil and gas services company. In early 2012, the company made a strategic decision to focus on providing water generation and treatment services associated with hydraulic fracturing (frack-water) used in recovering oil and gas from shale formations. The estimated market for recycling and the treatment of this water was $18 billion in 2011 and rapidly growing in 2012. The contract was awarded to ThermoEnergy following two highly successful pilot tests performed using ThermoEnergy mobile demonstration units. The first demonstrated technology capable of upgrading local waters for use in fracking operations on a highly economical basis. The second demonstrated technology for providing an improved and more cost effect approach for treating produced waters associated with oil and gas extraction.