Carbonxt Group Limited (ASX: CG1) (Carbonxt or the Company) is pleased to announce that it has been awarded a research grant of US$159,000 (~A$240,000) from the Florida state government. This significant funding will support an ambitious water remediation Project aimed at combating the harmful effects of Red Tide algae growth on Florida’s coastal communities. The collaborative research initiative will be undertaken with Mote Marine Laboratory, a globally recognised nonprofit marine research institution based in Sarasota, Florida. Both organisations will work on developing a novel approach to mitigating marine algae by leveraging Carbonxt’s expertise in activated carbon technologies.
A New Frontier in Environmental Protection
The Project’s core objective is to address the devastating impacts of harmful Karenia brevis algae (K. brevis), the algae responsible for Florida’s recurrent Red Tide events. These toxic algal blooms have severely damaged marine ecosystems and coastal economies, with the 2018 Red Tide event alone costing Florida an estimated US$2.8 billion (~A$4.3 billion) in lost tourist revenue. By mitigating these blooms, the Project aims to prevent such economic losses in the future, making it a promising investment opportunity. The toxins released by K. brevis also pose significant health risks to marine life and humans, leading to widespread environmental and public health concerns.
Innovative Solutions for a Global Challenge
Carbonxt and Mote Marine Laboratory aim to advance the science of water remediation by developing and pelletising new, environmentally friendly algicides combined with activated carbon. The innovative technology promises to deliver a scalable solution capable of being deployed across extensive coastal areas.
A recently published study in the Florida Water Resources Journal, stemming from prior collaborations between Carbonxt and Mote Marine, demonstrated the efficacy of similar compounds in laboratory settings. With this new grant, the research team will expand upon these findings, moving from controlled experiments to real-world applications. The pelletisation process, a critical Project component, will enable the technology’s widespread deployment, offering a practical and effective response to one of Florida’s most pressing environmental challenges.
Strategic Support from the Florida State Government
The grant is part of a broader initiative under Florida Statutes, which were legislated in 2019 by Governor Ron DeSantis, aimed at fostering collaboration between public and private research entities to combat Red Tide and other harmful algal blooms. This state-supported effort highlights the importance of innovative technologies in safeguarding Florida’s coastal communities and marine environments from the escalating threats posed by algal blooms.
Carbonxt’s CEO, Dr. Regina Rodriguez, commented on the significance of the grant:
“Along with our commercialisation initiatives, Carbonxt’s industry-leading R&D capabilities and strong commitment to environmental remediation position us to make significant strides in addressing harmful algae blooms that affect US waterways. This Project exemplifies our dedication to developing sustainable and effective solutions for water quality challenges and improving the quality of the environment. Carbonxt is pleased to leverage its own in-house expertise in direct collaboration with government policymakers and our research partners in pursuit of environmental outcomes which are in the public interest.”
Path Forward
As Carbonxt and Mote Marine Laboratory advance this groundbreaking research, they remain committed to delivering the solutions potentially adopted worldwide. This technology’s successful development and deployment could have far-reaching implications for regions grappling with similar environmental challenges.
Critical Factors for Investors’ Consideration
- Strategic Partnership with Mote Marine Laboratory: Collaborating with Mote Marine Laboratory, a globally respected marine research institution, enhances Carbonxt’s credibility and opens doors to future marine and environmental science opportunities. This partnership provides access to cutting-edge research and strengthens Carbonxt’s position as a leader in developing sustainable technologies.
- Expansion into High-Impact Environmental Solutions: The focus on combatting harmful algal blooms, particularly Red Tide, positions Carbonxt at the forefront of a critical environmental issue with far-reaching economic and ecological implications. The success of this Project could lead to the commercialisation of new products and services, opening up additional revenue streams and expanding Carbonxt’s market reach.
- Alignment with Government Initiatives: Securing funding under a state-backed initiative underscores Carbonxt’s alignment with government priorities in environmental protection and public health. This alignment facilitates access to additional funding sources in the future and increases the likelihood of government support for the commercial deployment of successful technologies.
- Potential for Scalable Solutions: Developing an all-in-one mitigation tool that combines activated carbon with environmentally friendly algicides offers significant scalability. Once proven effective in Florida, the technology could be adapted and marketed to other regions facing similar challenges, providing a substantial growth opportunity for Carbonxt.
- Market Growth in Cleantech: The global Cleantech market is poised for significant growth, driven by increasing environmental awareness and regulatory pressures. Carbonxt’s innovative solutions position the Company to capitalize on this trend, offering investors exposure to a high-growth industry with substantial long-term potential. This exciting prospect should inspire confidence and optimism in investors.
Market Information
In Bourses, Carbonxt’s stock was traded at AUD 0.083 on August 19th, 2024. The Company has a market capitalisation of AUD 26.31 million, with 324.92 million ordinary shares outstanding as of the same date.
