2022 in review: Carbonxt (ASX:CG1) makes a strong mark in cleantech space - Kalkine Media

Highlights

• Carbonxt Group manufactures specialised activated carbon products capable of capturing harmful pollutants emitted during industrial processes.
• In 2022, the company continued to extend its reputation in the industry as an innovative provider of activated carbon solutions with novel materials.
• CG1 entered the massive LNG sector and secured the renewal of its largest ACP contract.
• CG1’s HydRestor™ technology got selected under an innovative technology grant program of the Florida state government.
• Carbonxt signed a term sheet for the development of a new activated carbon production plant in Kentucky.

The world caught in the claws of climate change is looking desperately for technologies to rein in emissions and subdue pollution. While there has been rising demand for such products in the market worldwide, Carbonxt has been at the forefront of this sector with its innovative and robust portfolio of technologies for removal of industrial contaminants.

United States-focused cleantech company Carbonxt Group (ASX:CG1) manufactures specialised activated carbon (AC) products that are capable of capturing harmful pollutants emitted during industrial processes. Its products are employed for industrial air purification, wastewater treatment and other liquid and gas phase markets. 

In 2022, the company steered forward to grow its reputation in the cleantech sector as a provider of innovative solutions with new-age products. It is driven by the mission to emerge as one of the leading innovators and developers of novel systems for cleaner industrial processes.

For key details of 2022 developments, keep reading!

• While existing efforts and technologies such as carbon capture and storage, electrifying existing infrastructure, hydrogen blending and carbon offsetting are in place, Carbonxt entered the LNG sector to equip it with yet another tool to further decarbonise their operations. CG1 signed an agreement worth AU$2 million with renowned chemical products supplier Univar Solutions USA, Inc. As per the contract terms, CG1 will supply its AC pellets to Univar, which in turn will market the pellets to its customer base in the LNG industry. With this contract, Carbonxt entered the massive LNG sector, marking the expansion of its addressable market.

• CG1’s HydRestor™ technology got selected as the treatment option for an Innovative Technology Grant by the Florida Department of Environmental Protection. The state department will be funding pilot testing worth AU$400,000 to treat reclaimed wastewater to meet the regulatory limits for beneficial reuse.

Data source: Company update; Image source: © 2023 Krish Capital Pty. Ltd.

• Carbonxt secured renewal and an 8-year extension of its contract with Wisconsin Public Service until 31 December 2030 for the supply of activated carbon pellets. CG1 and WPS have been working together since 2016 on emissions reduction solutions. 

• In 2022, the company also managed to win an additional AU$0.2 million grant to boost Phase 2 development of technology that addresses the mitigation of Florida Red Tide algae blooms. CG1 is working in collaboration with the Marine Policy Institute at Mote Marine Laboratory for this work.

• CG1 signed a term sheet for a 50% ownership in a new state-of-the-art activated carbon plant located in eastern Kentucky, USA. The facility will boost the company’s production capacity from ~16,000 tonnes to over 25,000 tonnes. The new facility would enable the company to tap the strong demand for its industrial pellets both within its existing customer base and in the opportunity to service new customers.

Strengthening sales from its existing facilities and bringing the Kentucky plant online are among the prime priorities for the company in 2023. During the year, the company also expects to see substantial progress in research & development activities with initiatives in nutrient recovery and in rice husk waste.

As the demand for technologies that reduce emissions continue to be in high demand, Carbonxt believes that it is at the forefront of this market with existing products and a pipeline of exciting new technologies.

CG1 shares last traded at AU$0.075 apiece on 3 February 2023 with a market capitalisation of AU$22.02 million.