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Highlights
- Construction activities at the activated carbon plant in Kentucky are advancing well ahead of schedule.
- The plant is due to kickstart operations in January next year.
- CG1 has made the milestone payment of US$500k as the major equipment has been received at site.
Carbonxt Group Ltd (ASX: CG1) has shared an update on construction progress at the state-of-the-art facility in Kentucky, the USA. Owing to the advancing developments, the activated carbon facility is now expected to commence commissioning production in January 2024. Moreover, the project is progressing within budget.
Technical mechanical work has been finalised.
As per the agreement with NewCarbon, LLC and Kentucky Carbon Processing (KCP), CG1 confirms that the milestone payment of US$500k has been made as all major equipment has reached the site.
Meanwhile, the company is considering options to sell its Arden Hills-based activated carbon pellet manufacturing plant.
More
Besides the accelerating construction work, the company is witnessing substantial interest from market participants. The feedback from existing and potential clients has been highly encouraging.
The company expects production of preliminary batch runs of AC pellets at the NewCarbon facility and distribution to customers for testing, over the next couple of months.
Image source: Company update
The product pipeline of the NewCarbon facility is attracting customers’ attention for multiple reasons, such as the enhanced pressure drop performance at the water filtration plants.
Once the plant becomes operational, it will be the only coal-based pelletising AC manufacturing unit in the US, which by itself creates an entry point into the water filtration utility industry.
To date, this market remains unserved by the company’s AC pellets.
Data source: company update
CG1 shares traded at AU$0.065 apiece on 15 November 2023.