Carbonxt Group Limited, a Leading Player in the Activated Carbon Market
The demand for activated carbon is increasing due to growing concerns about emissions and environmental conservation. The global Cleantech market is expected to reach $2.5 trillion by 2025, growing at a Compound Annual Growth Rate (CAGR) of 6.1% from 2020 to 2025.
The increasing market for activated carbon generates several opportunities for green tech companies. Companies are utilising activated carbon pellets to capture CO2 from industrial emissions, a crucial step towards reducing greenhouse gas emissions. Another area of focus is on sustainable production methods for activated carbon. Instead of relying on fossil fuels, companies are exploring the use of biomass or recycled materials to produce activated carbon.
Additionally, companies are developing technologies that capture CO2 from industrial sources and convert it into valuable chemicals or products.
Carbonxt Group Limited, a Leading Player in the Activated Carbon Market
Carbonxt Group Limited (ASX: CG1) (the “Company” or “Carbonxt”) is a leading provider of premium activated carbon products and solutions. The Company’s innovative products and services are used in various industries, including air and wastewater treatment, waste management, and renewable energy. With its strong track record of innovation and customer satisfaction, Carbonxt Group is well-positioned to capitalise on the growing demand for activated carbon.
Carbonxt has secured a $24M four-year contract extension with Reworld, allowing the Company to supply premium PAC products from its Black Birch facility in Georgia. Carbonxt’s recent contract extension with ReworldTM, a US-based leading provider of sustainable waste solutions, shows the strong demand for Carbonxt’s products and services.
The contract, which begins in October 2024, is expected to generate annual revenues of approximately $6 million for the duration of the agreement, representing a 25% increase in the group’s total annual revenues. The expanded contract will also result in significant gross margins for the Black Birch facility, exceeding 40%.
The companies will also collaborate on various sustainability efforts, including developing and purchasing of renewable energy credits (RECs).
Carbonxt Managing Director Mr.Warren Murphy said,
“This contract expansion and extension with Reworld is a significant development for the Company, and firmly establishes Carbonxt’s presence in the US waste-to energy sector. Reworld’s expansive network of sustainable waste facilities coupled with Carbonxt’s renewable products enables large-scale emission compliance through a greener supply chain. This is an industry where the need for technologies to meet sustainability and decarbonisation goals is growing rapidly, and our suite of renewable best-in-class PAC products are a perfect fit. With an increase in demand from additional new sectors and ongoing solid performance from our technology portfolio, we remain in a strong position to scale up operations and deliver further value to our shareholders.”
Figure 1: Carbonxt Group’s Managing Director, Mr Warren Murphy
Carbonxt Group Limited’s Managing Director, Mr Warren Murphy, brings extensive experience and achievements across various sectors. He has played key roles in the energy sector, including positions at Australian Infrastructure and Project Finance Group, Alinta Limited, and Sydney Gas Limited.
Under Managing Director Warren Murphy’s leadership, Carbonxt Group Limited has achieved continuous growth and success.
Carbonxt’s Renewable Product Portfolio
Reworld’s decision to extend and expand its contract with Carbonxt was driven by the company’s commitment to sustainability and renewable products. Carbonxt’s renewable product portfolio, which uses recovered wood-based material to produce carbon products, aligns with Reworld’s focus on a circular economy and zero-waste-to-landfill initiatives.
Carbonxt offers three powdered activated carbon pellets that use recovered wood-based material in the wastewater treatment industry: Cxt-Aqua+, Cxt-BB500, and Cxt-BB600. These products are designed to remove taste and odour compounds from water and meet the AWWA B600 specifications.
Carbonxt’s industrial gas purification products, Cxt-ACP60 and Cxt-ACP80, may also include recovered wood-based material. These high-quality activated carbon sorbents are engineered to remove VOCs and hydrogen sulphide from industrial gas streams.
Recent Sales Momentum
The contract with Reworld follows a recent $4.3 million sale of activated carbon pellets to Wisconsin Public Service (WPS), a US utility provider. This sale was agreed upon on forward-sale terms, leading to a material increase in Carbonxt’s short-term cash. The recent sales momentum for premium activated carbon products in the US market comes ahead of the forthcoming commissioning of Carbonxt’s flagship activated carbon production facility in Kentucky.
Investor Outlook
- Carbonxt’s strong sales momentum, its expanding product range, and strategic partnerships position it well for continued success in the US waste management market
- With the commissioning of its Kentucky facility imminent, investors can expect further updates on negotiations with large customers to sell premium AC products.
- Carbonxt Group’s future looks bright, with its strong product portfolio and strategic partnerships set to drive growth and profitability
- Carbonxt’s share price traded at AUD 0.0.085 per share as of 22nd July 2024, with a 52-week range of AUD 0.049 – 0.120 per share
- Carbonxt’s market capitalisation is AUD 25.34 million as of 22nd July 2024, with 92 million issued shares
About Carbonxt Group
Carbonxt Group Limited (ASX: CG1) is a prominent player in the energy sector, renowned for its advanced carbon products that effectively address industrial pollution control needs. The company’s success can be attributed to its efficient manufacturing logistics, corrosion prevention technology, and customised solutions tailored to specific pollutant capture requirements.
Under the leadership of Managing Director Mr Warren Murphy, Carbonxt Group is poised for continued growth and poised to make a significant impact on the industrial pollution control sector. For the latest news and updates, visit their official website.
Stay tuned to the official website for the latest news and updates.
