Highlights

• CG1 has begun full-scale delivery of additional Powder Activated Carbon (PAC) volumes to Reworld.
• CG1 had secured a four-year contract extension with Reworld, generating annual revenue of AU$6 million.
• Despite Hurricanes Helene and Milton, CG1’s Black Birch facility quickly resumed full operations.
• CG1 shares rose by 12% to AU$0.074.

Shares of Carbonxt Group Ltd (ASX:CG1) jumped by 12% on 17 October 2024, reaching AU$0.074 each, following the company’s announcement of latest development in its contract with Reworld.

Carbonxt has begun full-scale delivery of additional PAC volumes to Reworld, with the product being supplied from its Black Birch facility in Georgia, marking a significant milestone for the company.

CG1 supporting Reworld’s sustainability goals

Reworld is a major international company specialising in sustainable waste solutions. This PAC supply is a crucial component of Reworld's 17 waste-to-energy plants across the United States, helping the company comply with stringent emission regulations regarding dioxins, mercury, and furans while supporting its sustainability goals. Additionally, the partnership reflects Reworld’s commitment to advancing zero-waste initiatives.

In July 2024, the company announced a four-year contract extension with Reworld for the supply of PAC, generating nearly AU$6 million in annual revenue throughout the contract duration.

CG1 completed the first shipment as planned in October 2024, and the delivery of additional volumes represents a scale-up for CG1’s operations.

The extension of this contract underscores the sustainable qualities of CG1's PAC product, which aligns seamlessly with Reworld's strategic shift away from fossil fuels.

Manufacturing operations bounce back

Despite encountering two significant weather events—Hurricane Helene and Hurricane Milton—the Black Birch manufacturing facility has resumed full operations with no major damage reported.

During the hurricanes, production capacity and plant integrity remained intact. With the swift recovery efforts and effective contingency planning, the facility was quickly brought back online, enabling Carbonxt to meet its delivery commitments with minimal disruption.