Carbonxt (ASX:CG1) announces US$500,000 prepayment to advance Kentucky activated carbon plant

March 31, 2023 12:10 PM AEDT | By Ankit Sethi

Carbonxt (ASX:CG1) announces US$500,000 prepayment to advance Kentucky activated carbon plant — Image source: Carbonxt website

The development

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.

About Carbonxt

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”.

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