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Carbonxt (ASX:CG1) burnishes ESG credentials with new Kentucky plant - Kalkine Media

September 08, 2022 11:46 AM AEST | By Manisha
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Highlights

  • Carbonxt (ASX:CG1) provides patented AC products that aid in removing toxic pollutants from wastewater streams and industrial gases.
  • The company recently inked term sheets for a 50% ownership in an activated carbon production facility in Kentucky.
  • The new plant is expected to be amongst the greenest facilities of its kind in the world.
  • The Kentucky plant will increase the production capacity of Carbonxt by 57%.

Carbonxt Group Limited (ASX:CG1) is steered by its mission to reduce emissions and toxic pollutants from wastewater streams and industrial gases.

The ASX-listed cleantech company is the sole producer of industrial activated carbon pellets in the United States. The company operates in huge target markets that have high demand for its patented activated carbon products for industrial applications. In the last six months, as of July 2022, cost of all the products offered under the company’s portfolio have seen an increase of 40%.

Moreover, the activated carbon market has been witnessing strong demand from the energy intensive industries committed to reducing emissions.

Carbonxt gains scale and cost benefits with new investment

Recently, Carbonxt got its hands on a transformational investment opportunity. As part of term sheets signed, the company is eyeing an ownership of 50% in a Kentucky plant. The new state-of-the-art activated carbon plant based in Kentucky, United States, will be run by Carbonxt in collaboration with KCP.

With this development, the production capacity of Carbonxt is expected to mount up to more than 25,000 tonnes, representing a 57% increase from the current capacity of around 16,000 tonnes.

The new plant, currently under construction, is expected to be a bonanza for the company. Even though there will be incremental production at Kentucky, the production cost is likely to be lower than earlier. This would be primarily because of feedstock with higher quality, renewable power source of low cost, and shared services with KCP.

According to initial contracts, it can be estimated that the Kentucky plant will bring about gross margins of approximately 55%. The plant is likely become operational before June 2023.

Read more about the plant here

World-class ESG credentials

Image source: © 29mokara | Megapixl.com

Carbonxt made this investment as it strongly believes that the new facility will be one of the greenest and the most sustainable plants of its kind in the world.

Unlike its peers, Carbonxt will not utilise any kind of fossil fuels as its primary heating source during the production process.

The plant is located next to Inez Power’s renewable waste-to-energy facility. Carbonxt will source electricity from the WTE facility for the Kentucky plant, which will further improve operating costs as well as maintain quality control.

In short, all the pellets, powders as well as granular activated carbon products will be manufactured at the plant using a fully renewable energy source. Even the high-quality gas emissions from the plant will be channelised to Inez Power’s WTE facility for use in power generation.

CG1 shares traded at AU$0.11 apiece on 6 September 2022.

 

 


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