By - Ankit Sethi
- CG1 develops activated carbon products that play an important role in water treatment and other processes
- The prepayment by Carbonxt is aimed at advancing the development of an activated carbon production centre in Kentucky
- The final sign-off for the first phase of construction work at the US-based site is likely to happen soon
ASX-listed Carbonxt Group (ASX:CG1) has informed the market about the latest development concerning its joint venture with US-based Kentucky Carbon Processing, LLC. Carbonnxt has contributed to the JV in the form of a prepayment of US$500,000. The activated carbon production site to be developed under this JV is in Kentucky, and legal documentation and other development negotiations are in progress.
Against the backdrop of Carbonxt Group's Kentucky project development in the US, the company has now announced the first contribution toward the JV with Kentucky Carbon Processing, LLC. This prepayment of US$500,000 would go into developing the state-of-the-art activated carbon plant, the field in which Carbonxt specialises. Further, the company has asserted that the payment would facilitate procurement of "longer lead-time items" with respect to the facility's construction (Phase 1).
Carbonxt has informed that the legal documentation process to finalise the framework of company's partnership with Kentucky Carbon Processing is also progressing smoothly. Final terms are pending before the construction begins and are expected to be worked out in near future.
Carbonxt's funding would also enable maintaining the timeline of operations commencement at the plant, with the prepayment reflecting a strong commitment from parties to expedite the construction. The facility, Carbonxt says, would "significantly increase" the company's production capacity and CG1's gross margins with respect to sale of activated carbon products in the US market.
Notably, the company asserts that its products would play a big role in processes like water treatment and air purification spanning multiple sectors. The new Kentucky facility is expected to consolidate the company's market position, thanks to elevated production of activated carbon (AC) pellets and powder.
Source: CG1 ASX announcement dated 28 March 2023, © 2023 Krish Capital Pty. Ltd.
The ASX listed clean technology (cleantech) company develops and sells specialised AC products. The focus of Carbonxt is to assist in capturing of contaminants in various industrial processes that produce large amounts of toxic pollutants. AC pellets and powder are the primary products manufactured and marketed by the company.
The company's Managing Director has lauded the latest development and said that "negotiations now moving into the advanced stages”.