Published On: June 1st, 2023
Carbonxt Group Ltd (CG1) – a pioneering cleantech company specialising in designing and manufacturing customised activated carbon products & activated carbon services – is pleased to announce a legally binding joint venture with Kentucky Carbon Processing, LLC.
Carbonxt Group, under the leadership of Managing Director Warren Murphy, continues to show developments in its projects through the implementation of Advanced Carbon Technologies, such as the development of activated carbon products, which filter air and water. This progress underscores Carbonxt Group’s steadfast commitment to environmental responsibility and innovative growth.
Significance of the Carbonxt Group Ltd (CG1) Joint Venture
The joint venture between Carbonxt Group Ltd (CG1) and Kentucky Carbon Processing, LLC marks a significant turning point in their shared journey towards a sustainable future. The flagship Project of this venture is a cutting-edge activated carbon plant, “NewCarbon”, based in Kentucky. This joint venture is a testament to the power of strategic alliances to drive industrial growth and advance clean-tech innovations with advanced carbon technologies.
The newly planned facility is set to give a significant boost to Carbonxt Group’s production capabilities. Alongside this remarkable increase in capacity, the venture also promises economic efficiencies as the production costs of activated carbon pellets are expected to decline considerably.
The Project addresses the increasing demand from the US water and wastewater treatment industry based on new water quality standards from the US Environmental Protection Agency (EPA). The NewCarbon facility is a prime source of activated carbon – a crucial component in the water treatment processes. In addition to this, this initiative will also broaden Carbonxt’s manufacturing presence across North America.
More about the Project
Carbonxt Group Ltd will invest USD 10 million (spread over two years) to create ‘NewCarbon’. Kentucky Carbon Processing will provide vital Inez Power assets: Kiln, turbine, and other facilities to deliver the initial 10,000+ tons of activated carbon plant. Kentucky Carbon Processing will also deliver the operational production facility.
Carbonxt will experience reduced development risk, lower costs, and increased production capacity by converting the current Inez Power facility into an activated carbon plant. This transition will also enable Carbonxt to benefit from a more favourable payment schedule, with 45% of the expenses paid once the manufacturing plant is operational and generating cashflows.
Managing Director Warren Murphy lauded the announcement of this venture, stating – “Formal confirmation of our JV partnership for the construction of a state-of-the-art AC production facility in Kentucky is a landmark development for Carbonxt.” (contd.)
Meet Mr Warren Murphy, Managing Director of Carbonxt Group
Figure 3: Managing Director Warren Murphy
Managing Director Warren Murphy is an esteemed executive with an impressive background in finance and brings a rich experience from several industries. He has influenced top-tier energy firms such as Australian Infrastructure & Project Finance Group, Alinta Limited and Sydney Gas Limited.
Mr Warren Murphy’s exemplary guidance has been a driving force behind Carbonxt’s ongoing success. His contributions to global projects have left an indelible mark on the Company and the industry. Under his stewardship, Carbonxt Group is poised for sustained advancement and growth in the future.
Financial Outlook of Carbonxt Group Ltd (CG1)
Carbonxt Group Ltd (CG1) has displayed resilience in the market. Despite a challenging last year, the Company has shown 96% growth in the past month, and currently, Carbonxt’s stock is trading at AUD 0.098 on the Australian Stock Exchange (ASX: CG1). The Company’s shares fluctuated within a 52-week range of AUD 0.242 to AUD 0.046 per share.
The Company’s market capitalisation is AUD 26,979,920, comfortably positioning it at 451 out of 959 in the sector rank and 1,433 out of 2,424 in the ASX Rank. The Company remains non-dividend paying, focusing instead on growth and expansion activities, as evidenced by its joint venture announcement in Kentucky, USA.
Key Takeaways
- The JV between Carbonxt Group Ltd(CG1) and Kentucky Carbon Processing, LLC will significantly expand the operational capacity and new market access of Carbonxt Group Ltd.
- NewCarbon JV diversifies the Company’s portfolio and solidifies its presence in North America. It also signals the potential for steady growth and attractive returns for investors.
- The venture significantly increases Carbonxt’s annual production capacity to 21,000 tons of high-quality activated carbon products.
- Carbonxt, under the helm of Managing Director Warren Murphy, will invest USD 10 million in the Project over two years, with funding secured to cover working capital, plant completion costs, and contingencies. Its share will build up to 50%.
- Enactment of National Primary Drinking Water Regulations for PFAS in 2023 and EPA enforcement from 2024, supported by USD 10 billion in funding under the Bipartisan Infrastructure Law, will drive compliance with new PFAS standards.
- The Kentucky JV facility will significantly increase production capacity for Activated Carbon (AC) products, the primary solution for water utilities to treat PFAS, enabling Carbonxt to enter the liquid-phase market and expand its addressable market to approximately USD 900 million.
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