Carbonxt (ASX:CG1) takes centre stage at carbon pellet market amid growing demand - Kalkine Media

Highlights

• The demand for emission-reducing technologies has zoomed in manifold in recent times, with cleantech firms like Carbonxt taking centre stage
• Carbonxt is one of the leading players in the market, offering a robust pipeline of novel and innovative solutions, including Activated Carbon Pellets and Powdered Activated Carbon
• CG1 won an eight-year extension of a crucial ACP supply contract with its largest customer, Wisconsin Public Service
• The company is on the path to advance Phase 2 development of technology after securing an additional grant of AU$0.2 million to address the mitigation of Florida Red Tide algae blooms

The demand for technologies which can lower emissions and control pollution is rising. It is a clear reflection of the growing strength of the US economy. Also, it highlights the significant role of the cleantech companies involved in designing and developing environmental solutions through advanced carbon technologies.

In the present-day cleantech sector of the United States, Carbonxt Group (ASX:CG1) is one of the leading players. The company believes it is at the forefront of this market with its superior products and a robust pipeline of novel and innovative technologies. CG1 has been drawing a strong demand for its Activated Carbon Pellets (ACP) and Powdered Activated Carbon (PAC). 

Image source: Company website

Let’s look at some facts reflecting Carbonxt’s growing reputation in the market for its environmental solutions and customer service.

In the September quarter, Carbonxt registered an increase of about 17% quarter-on-quarter growth in sales of Powdered Activated Carbon. The company attributes a major share of this revenue hike to voluminous orders from its largest industrial customer. Similarly, there was an increase of 19% in customer receipts, taking it to AU$A5.1 million during the last quarter.

According to Carbonxt, it has a highly successful partnership with its largest customer, Wisconsin Public Service. It might have been proven with the long-term renewal of a contract between the two parties. CG1 won an eight-year extension of a crucial ACP supply contract with the customer until 2030. Prior to the extension, CG1 had signed an original six-year agreement.

The company is on the path to advancing Phase 2 development of technology as it has secured an additional grant of AU$0.2 million to address the mitigation of Florida Red Tide algae blooms (concentration of harmful algae blooms that can kill marine animals and be harmful to humans). Carbonxt will use the proceeds from the grant to continue its focus on research and development work, which the company started last year in collaboration with the Marine Policy Institute at Mote Marine Laboratory.

Image source: Company website

What’s the priority for CG1?  

Aligning with the pace of the soaring demand for emission-reducing products, the company plans to multiply its sales from current plants with increased focus and efforts. It is also looking forward to a game-changing occurrence with the development of its planned Kentucky plant.

CG1 shares were last spotted at AU$0.105 apiece on 24 November 2022 with a market capitalisation of AU$23.27 million.