Highlights

• Today, it has become essential for corporations to address ecological challenges due to changing consumer behaviour and strict government regulations.
• Companies are putting in efforts to limit pollution emissions using innovative cleantech solutions that meet compliance-related requirements. 
• Specialised activated carbon products by Carbonxt Group capture harmful pollutants such as mercury and other contaminants in industrial processes. 
• Following rising demand, Carbonxt sold out of its CTC pellet inventory in FY21 and continues to receive more orders for its products.
• The company registered AU$9.9 million in revenue for the six-month period ended 31 Dec 2021, 38% higher on pcp.

The focus on minimising emissions and managing waste in today’s world is unprecedented as increasing number of individuals take proactive steps to mitigate environmental risks. Factors such as changing weather patterns, exacerbating health challenges, and deteriorating air and water quality have motivated people to exercise their power through purchasing decisions. 

Meanwhile, responding to the growing ecological challenges is not just a choice but an impertinent need for corporations as consumer behaviour changes and governments tighten the standards.

In the current scenario, many companies owing to the nature of their industries have been able to tick off the compliance-related requirements. Unfortunately, many others still need to limit pollution emissions, that often need innovative cleantech solutions.  

One such cleantech company is Carbonxt Group Limited  (ASX:CG1), which develops, and markets specialised activated carbon products to typically cater to the US market. These products capture harmful pollutants such as mercury and other contaminants in industrial processes.  

You may read: Carbonxt (ASX:CG1) marks entry into LNG sector with $2M contract, shares soar

Carbonxt’s Strong Track Record 

The cleantech company registered revenue of AU$9.9 million for the six-month period ended 31 December 2021, up 38% year-on-year.

Image source: © Eamesbot | Megapixl.com

The strong performance reflects several factors including increased economic activity at the tail end of the pandemic, higher natural gas pricing, warmer summer, and successful business development initiatives. 

Gross margin stood at 36% for the period, up from 26% in the year-ago period, principally due to increased sales volume combined with lower production costs across all product lines. 

Related Read: Carbonxt (ASX:CG1) delivers solid first half with booming AC pellet business

Soaring demand for Activated Carbon: The mainstay of CG1’s revenue growth

There has been a sharp rise in demand for activated carbon solutions in the market. Carbonxt sold out of its CTC pellet inventory in the last fiscal year 2021 and still there is good flow of orders for its products.

Carbonxt is focusing on developing potential paths forward and has gripped on several means to boost output to meet the increasing demand. The company expanded operations at its Arden Hills and Black Birch facilities to 24/7 operations in January 2022.

Do read: Carbonxt (ASX:CG1) wins Florida Innovative Technologies Grant for HydRestor™

Carbonxt’s R&D squad at work

Image source: © Kentoh | Megapixl.com

Also read: Carbonxt Group (ASX:CG1) riding high on US economic recovery tailwinds

One of the prime reasons for the company’s high performance across vital development indices is its Research & Department team. The R&D team is led by a force of well-respected and recognised PhDs from the industry.

They are dedicated to enhancing the company’s existing product portfolio as well as exploring and building new innovative solutions for its customers.

The research-driven company is working with an array of partners across industries to engineer new sorbents for pollutant absorption. It is committed to design custom solutions and systems for use across the globe.

Related Read: Learn how Carbonxt Group is unlocking opportunities in water treatment space

CG1 shares were trading at AU$0.265 midday on 6 April 2022.