Carbonxt Group Ltd (ASX:CG1) (‘‘Carbonxt” or “the Company”) has released its Appendix 4E Preliminary Final Report.
Revenues for the group were essentially stable (decreased by 2.2% in FY24 compared to FY23). During the year, the team was able to renegotiate multiple of its current powdered carbon contracts to increase pricing, much of which will be realised in the next fiscal year.
In May 2024, the group announced a forward sale for $4.2M to a major utility provider and Carbonxt’s largest AC pellet customer, with the cash received prior to year-end.
Adjustments to optimise existing operations across the group’s two production facilities at Arden Hills and Black Birch, along with forward-looking production planning, have reduced the average cost of production with savings expected to flow through to future periods
Logistics efforts with carriers and shipping vendors resulted in improvements in shipping rates with additional shipping lanes.
Annual gross margin was 38%, compared to 30% in FY23.
Underlying EBITDA for FY24 was a loss of $2.7m, compared to FY23 EBITDA of a $2.3m loss.
Post balance-date in July 2024, the Company made another material revenue announcement with confirmation of a 4-year, $24m contract extension with a major waste to energy provider.
In line with strong market conditions for Powdered Activated Carbon (PAC) products in the US market, PAC sales made up an increased percentage of group revenues for the third straight year
Activated Carbon Pellets
Pellet sales represented 59% of revenue in FY24, down from 66% of revenue in the prior period.
This decrease was driven by the strategic decision to reduce production of vapor phase CTC pellets, as the forthcoming commissioning of the Kentucky JV facility will be able to produce AC pellets at higher margins for the business in the near future.
Tolling activities remained strong for the fiscal year, as a result of the management team’s ability to optimize production efficiencies and increase selling volumes of this product line by over 59% from the previous fiscal year.
Powdered Activated Carbon
The utilization of recovered wood-based char material from local Georgia based lumber sawmills to create a renewable powdered activated carbon continues to support strong margins in our powdered carbon business.
Powdered carbon sales accounted for 41% of revenue and 61% of sales volume, both an increase from the previous reporting period (34% and 55% respectively).
The group was able to extend a growing contract with a major waste to energy provider which is expected to see in excess of 25% increase in annualized group revenue, commencing in October 2024. In addition, the group renegotiated multiple of its current powdered carbon contracts to increase pricing, much of which will be realised in the next fiscal year.
The group is looking in 2025 to invest in additional redundancy for the present mill to provide capacity for up to 5,000 tons per annum of incremental PAC volume. Additionally, renegotiations of the Carbon Concepts lease agreement are ongoing and expect to be concluded in 1H25.
FY24 GROWTH OPPORTUNITIES
Company Outlook
Growth from existing operations will be underpinned by the new contract win with a major waste-to-energy provider, which is expected to see an increase of over 25% in annualized revenue. This does not include any additional contribution from the commencement of the Kentucky investment mentioned below. We expect gross margins to exceed 40% as the portfolio-wide price increases and operational improvements flow through. In turn, with the commencement of the Kentucky plant, we expect to see a step change in the scale of Carbonxt’s business in FY25.
Update on Kentucky JV – NewCarbon Processing LLC.
The construction of the new activated carbon plant in eastern Kentucky, USA is nearing completion. The plant will have an initial capacity of 10,000 tons per annum, with the ability to expand to 20,000 tons per annum for a small additional investment.
The investment in NewCarbon Processing, LLC (“NewCarbon”), is alongside our US partner KCP. Carbonxt currently holds a 35.5% ownership interest in NewCarbon, with options to invest a further USD $4.5m to move to 50% ownership interest.
This article includes content from Carbonxt Group, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
In an increasingly eco-conscious global market, Carbonxt makes a compelling investment case leveraging a current, approximate US$900 million addressable market, driven by a strategic joint venture that presents strong revenue and growth potential. This addressable market is anticipated to grow three to five fold to more than US$2 billion following the introduction of new rules to capture forever chemicals.
Overview
Activated carbon is typically derived from sources such as coconut husks and coal, and is among the most common ways to filter contaminants from both water and air.
Activated carbon is so named because the process by which it's produced oxidizes the carbon, 'activating’ a series of small, low-volume pores that considerably increase its surface area. There are a few different methods for producing the material, including carbonization, gas treatment and chemical treatment. It is also invaluable for a wide range of use cases across multiple industries, including healthcare, chemistry, agriculture, oil & gas and even food preparation.
For large-scale industrial use cases, activated carbon typically comes in one of three forms: powdered, pellet and granular. Depending on how the material is treated post-oxidation, activated carbon can be tailored to a multitude of individual use cases. For large-scale use, material cost can range from US$2,000 per tonne to as high as US$6,000 per tonne, presenting a considerable opportunity in activated carbon.
Carbonxt Group (ASX:CG1) is positioned to take full advantage of that opportunity. An innovative manufacturer of custom activated carbon, Carbonxt has locked in a joint venture with US-based partner Kentucky Carbon Processing, forming the joint venture NewCarbon, and effectively expanding Carbonxt’s addressable market and gross margin.
Much of this growth will be courtesy of a new Kentucky facility focused primarily on water treatment. This facility will leverage two pieces of legislation recently announced in the United States — the Environmental Protection Agency's (EPA’s) Clean Water Act and the Bipartisan Infrastructure Deal. The former aims to reduce pollution caused by polyfluoroalkyl substances (PFAS), while the latter provides a total of $10 billion in funding to help companies reduce PFAS contamination.
PFAS are a set of widely-used chemicals that take an incredibly long time to break down. Found in soil, water, air, fish and humans, multiple studies have linked PFAS to severe health problems, which include birth defects, developmental delays, thyroid disease, high blood pressure and increased risk of several types of cancer.
Carbonxt provides products specifically targeting PFAS removal. Through the NewCarbon joint venture, the company intends to convert a waste-to-energy plant into an activated carbon plant, considerably increasing its production capacity and allowing it to directly serve the roughly 50,000 water utilities in the United States, which together account for roughly 50 percent of the granular activated carbon market.
If all goes as planned for Carbonxt, it will fully disrupt that market, unseating the current leader.
Company Highlights
Carbonxt Group is a manufacturer of patented activated carbon products designed to treat toxic pollutants in both air and water. For example, Carbonxt Group has been awarded a US$159,000 (AU$240,000) research grant by the Florida state government to advance a groundbreaking water remediation study to combat the negative impacts of algae growth on coastal communities.
Carbonxt currently has an addressable US market of US$290 million with a 5 percent market share. Its joint partnership with Kentucky Carbon Processing has the potential to increase this addressable market to more than $900 million.
Together, Kentucky Carbon Processing and Carbonxt will form the joint venture company NewCarbon, affording Carbonxt several advantages:
Increased US-based production capacity to over 20,000 tons per annum with the potential for further expansion.
Control over input costs, considerably improving base margins.
High-quality raw materials.
In the near future, much of Carbonxt's growth will be driven by the United States Environmental Protection Agency's increasing regulation of PFAS.
There are currently 50,000 water utility companies in the United States, 4,000 of which serve 10,000 or more customers. Collectively, they account for roughly 50 percent of the granular activated carbon market with annual expenditures of over US$300 million.
Carbonxt is well-positioned to serve these companies, providing activated carbon pellets that offer improved filtration with a lower pressure drop as a replacement for granular activated carbon.
In addition to a highly experienced leadership team, Carbonxt’s strong revenue and earnings growth potential from NewCarbon make the company an attractive investment prospect.
Core Product
High-performance Activated Carbon
Carbonxt designs specialized activated carbon products for its customers, which consist primarily of industrial sector organizations and power utilities. Available in pellet and powder form, the company's oxidizing, non-brominated activated carbons are non-corrosive and designed to remain efficient throughout their entire lifecycle. Although Carbonxt’s origin and listing is in Australia, its products are manufactured and distributed exclusively within the United States.
Carbonxt is currently focused on developing an activated carbon manufacturing facility in Kentucky, the result of a joint partnership with Kentucky Carbon Processing. Once this facility is operational, water utility companies are expected to form a much larger part of its customer base. The facility is also expected to re-invigorate the company's industrial pellet market sales.
Highlights:
Strong Market Outlook: Industry demand for powdered and pelletized activated carbon remains strong. Prices have trended considerably upwards over the past year and will likely continue to do so for the foreseeable future.
Pricing Trends: Carbonxt's primary competitors in the activated carbon market have both announced price increases ranging from 15 to 40 percent. The company's activated carbon products have the potential to offer better filtration at a considerably lower price point.
Looking Up: Carbonxt has also recently improved its existing carbon manufacturing facilities. This has translated to a more than 20 percent increase in gross margins in the last financial year, with further double digit percentage gains expected in FY24.
Making a Good First Impression: Carbonxt's high-specification sample products have been well-received by end customers. Management is currently in talks with numerous water utilities to purchase capacity from the company's new facility once it comes online.
Use Cases: Carbonxt currently manufactures activated carbon products for the following:
Powdered activated carbons for mercury and flue gas component removal. Customers for this use case include coal-fired power plants, cement plants and industrial boilers & incinerators. Carbonxt manufactures a specialized activated carbon for each type of customer.
Pelletized activated carbon for the removal of VOCs and hydrogen sulphide from gas streams.
High-quality pelletized activated carbons designed to remove drinking water contaminants as well as taste and odor compounds.
Contract Agreements: Carbonxt has secured a $4.3 million purchase order for activated carbon (AC) products from US utility Wisconsin Public Service. The company also secured a four-year contract extension to supply premium PAC products to Reworld, a global leader in sustainable waste solutions. The deal will generate group revenues of approximately $6 million per annum for the duration of the contract.
Management Team
David Mazyck – President, NewCarbon (the Kentucky JV) and Director of Technology
Dr. David Mazyck is a world-leading expert on activated carbon (AC) and its applications including mercury capture. He has developed AC products for major multinational AC manufacturers and has regularly consulted them on technical issues. Mazyck is the former chairman of the Activated Carbon Standards Committee for the American Waterworks Association and has developed products for NASA.
He received his PhD in environmental engineering from Penn State University, where he also earned a PhD minor in fuel science.
Matthew Driscoll - Chairman
Matthew Driscoll has significant experience across several industries, including online technologies, financial services, fintech, cleantech, property and resources. He has more than 30 years’ experience in capital markets and the financial services industry and is an accomplished company director in roles across listed and private companies.
He has significant experience in international business growth, mergers and acquisitions, equity and debt raisings and building strategic alliances. His current directorships include NED Energy Technologies, NED Blina Minerals, NED Eco Systems, and NED Smoke Alarms Holdings.
Warren Murphy - Managing Director
Warren Murphy has led a large number of acquisitions and financings across the energy, resources and infrastructure sectors. This includes the development of over 2,000 MW of Greenfields power stations and the acquisition of over 3,000 MW of generation assets.
He was co-head of the Australian Infrastructure & Project Finance Group and Head of Energy at Babcock & Brown based in the Sydney office and led the development of Babcock & Brown’s energy sector capability in Australia and New Zealand, including the founding of Infigen Energy and its unlisted predecessor, Global Wind Partner, where he served as a director from inception until June 2009.
Murphy was also a director of the ASX-listed Alinta and Sydney Gas, as well as the unlisted Coogee Resources.
Dr. Regina Rodriguez - Senior Executive
Dr. Regina Rodriguez has a PhD from the University of Florida, where she received the prestigious National Science Foundation Graduate Student Fellowship. She was the chairperson of the Activated Carbon Standards Committee for the American Waterworks Association.
Rodriguez holds nine patents. Her leadership has resulted in one-of-a-kind sorbents and systems for power stations and water treatment.
Imtiaz Kathawalla – Independent Director
Imtiaz Kathawalla was a vice-president at NYSE-listed Cabot Corporation, a global specialty chemical company where he had a 27-year career. Kathawalla's most recent position with Cabot Corporation was as general manager of Cabot's purification solutions division. He ran the group's US$300-million global activated carbon business where he oversaw a material increase in EBITDA before managing the sale of the business to a large private equity group.
Nicholas Andrews – Independent Director
Nicholas Andrews has held the role of executive chairman and CEO at Magontec (ASX:MGL), an established business in the global magnesium sector. He is a member of the executive committee and serves on the board of the International Magnesium Association. Prior to his executive career, Andrews held several senior roles in the financial services sector across both investment management and investment banking.
Reworld™, a leader in sustainable waste solutions, is announcing the launch of ReCredit a groundbreaking program designed to help customers achieve their net-zero goals through the purchase of sustainable carbon offsets. Reworld™ processes nearly 10 percent of the United States' garbage, significantly reducing net carbon emissions by avoiding methane-generating landfills. This effort prevents over 40 million metric tons of greenhouse gases annually, equivalent to the amount sequestered by 48 million acres of forest—an area spanning eight U.S. states.
ReCredit is one of several key solutions introduced by Reworld™ in its April rebrand, designed to support businesses in reducing greenhouse gas emissions and advancing toward net-zero. This partner program strengthens its relationships and offers exclusive ReCredits to preferred Reworld™ partners, empowering them to manage their carbon footprint.
To qualify for this program, Reworld™ partners must demonstrate dedicated sustainability goals with tangible results. Its inaugural member is cleantech company, Carbonxt .
"Reworld™ is committed to reimagining waste as a resource through reducing, reusing, recycling, recovering and renewing materials. This approach keeps waste out of landfills and helps our partners reach their decarbonization goals faster," said Gagan Sood , Chief Strategy & Growth Officer at Reworld™.
"At Carbonxt, our focus is on achieving optimal environmental outcomes for the carbon we produce. Our collaboration with Reworld™ represents a significant stride in fulfilling this dedication to sustainability stewardship. Initiatives like ReCredit are instrumental in helping us manage our Scope 1 and 2 goals effectively to make meaningful progress towards net zero and set a precedent for others in the industry to follow," stated Dr. Regina Rodriguez , CEO of Carbonxt.
ReCredit is one of many solutions that Reworld™ customers leverage on their sustainability journeys.
To learn more about ReCredit and explore Reworld™ focused solutions, including ReDirect360™ (Zero Waste-to-Landfill), ReKiln™ (Alternative Fuel Engineering), ReDrop™ (Wastewater Treatment), and ReMove (Transportation and Logistics), please visit reworldwaste.com .
About Reworld™ Reworld™ is a leader in sustainable waste solutions, providing innovative and environmentally responsible services to a global community. Reworld™ is committed to advancing zero waste initiatives and supporting sustainability goals through state-of-the-art technologies that reimagine, reduce, reuse, recycle, recover and renew. For more information, visit www.reworldwaste.com .
About Carboxt Carbonxt (ASX:CG1) is a cleantech company that develops, and markets specialized activated carbon products, focused on the capture of contaminants in industrial processes that emit substantial amounts of harmful pollutants. The company produces and manufactures powdered activated carbon and activated carbon pellets for use in industrial air purification, water/wastewater treatment and other liquid and gas phase markets.
St. Anthony Gold Corp. ("St. Anthony" or the "Company") (CSE:STAG)(Frankfurt: M1N)(OTC PINK:MTEHF) is pleased to announce that it has entered into a right of exclusivity agreement (the "ROE") to acquire the Mallay Mine in Peru
The Mallay Mine is located five hours drive north of Lima and three kilometers from the community of Mallay. The 10,562 hectare Tres Cerros Au-Ag Project, mine and processing plant are currently in care and maintenance mode. The existing 600 tpd plant was constructed in 2010.
The Mallay Mine was developed, capitalized and permitted by the multi-billion dollar, globally recognized mining company Compania de Minas Buenaventura S.A.A. (NYSE: BVN), a company that adheres to the highest of industry standards. Buenaventura sold the property to the third party with whom the ROE was entered into with. As part of the ROE, the Company lent to the arms-length third party $200,000 as a demand loan at 8%.
Peter Wilson, CEO stated "The opportunity to acquire such an advanced asset that provides this level of depth in investment [cg1] and optionality, in my view, is unparalleled. The market is aggressively searching for projects quick to cash flow with district scale mineral potential in globally recognized jurisdictions."
The Company intends to conduct a thorough review of the existing resource base and mine development plan to bring the historical resources and reserves into current estimate status under National Instrument 43-101 and create a new mine plan that will incorporate bulk tonnage underground mining methods.
During the 90 days exclusivity period the Company shall complete further due diligence on the project and, if satisfied, negotiate terms of a definitive purchase agreement.
Additionally, the Company announces that Mr. Chris Foster has been appointed as chief financial officer. Mr. Foster is a consultant providing accounting and financial management services for both public and private companies across a broad spectrum of industries. Mr. Foster is the current chief financial officer for DGTL Holdings Inc, former chief financial officer for Perpetua Resources Corp, former controller for the Ivanhoe Group's Global Mining Management Corporation and Peregrine Diamonds Ltd, former controller for Roca Mines Inc and former accountant at Canadian Forest Products Ltd. Mr. Foster is a member of the Chartered Professional Accountants of Canada (CPA Canada).
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Further information about the Company is available on www.SEDAR.com under the Company's profile.
Certain statements contained in this release may constitute "forward-looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated", "anticipates" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
[cg1] Want to quantify that by mentioning the $US$120 million in capitalized expenditures?
Provaris Energy Ltd (Provaris, ASX.PV1) is pleased to provide an update to shareholders on the Joint Development Agreement (JDA) with Yinson Production Offshore Pte Ltd (Yinson), as announced on 1 October 2024.
Yinson has made a payment of USD 200,000 related to Technical Service Fees for Provaris’ provision of its background IP and other technical information and services for the CO2 Tank project scope of work under the JDA, which commenced in October 2024. The agreed project scope and timetable for concept design activities runs into Q1 2025 where an update will be provided in conjunction with Yinson.
Background to the JDA for new CO2 Tank design
As announced on 1 October 2024, Yinson and Provaris are jointly evaluating the technical and economic viability of adapting Provaris’ proprietary tank design for compressed hydrogen to develop innovative and cost competitive alternatives for bulk-scale storage and transport of liquid CO2. The collaboration will also assess the potential for other gases such as ammonia.
Currently, there is no ship transport of CO2 in a low pressure and temperature range suitable for long sailing distances and large cargo volumes. This collaboration aims to help develop a new CO2 Tank design solution that will address current CO2 transit and storage limitations.
The development of CO2 storage and transport infrastructure is crucial for the widespread deployment of carbon capture, which is a critical pillar in meeting global emission reduction targets. The design of bulk scale CO2 Tanks is important for maximizing the amount of CO2 that can be stored and transported in a single cargo.
Provaris is being advised by the Energy Infrastructure Group, Clarksons Norway AS.
This article includes content from Provaris Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Leveraging its long-history and reputation as a cable manufacturer, Energy Technologies’ (EGY) push to capitalize on the growing renewable energy sector through strategic global partnerships present a compelling investment opportunity.
Overview
Australia-based Energy Technologies (ASX:EGY) has a strong foothold in the manufacture and distribution of copper-insulated cables through its wholly owned subsidiary, Bambach Wires and Cables. Since its acquisition by Energy Technologies, the company has served as a cornerstone of the company’s operations. Founded in 1936, the company is the oldest cable manufacturer in Australia, and its extensive history underpins a reputation for reliability and quality. With a manufacturing facility in Rosedale, Victoria, and sales offices in New South Wales, Western Australia, and Victoria, the company provides comprehensive solutions tailored to the needs of critical sectors including infrastructure, renewable energy, defense and mining. Energy Technologies’ commitment to supporting Australian industry is reflected in its products. Over 90 percent of raw materials used for its cable products, like copper and plastic, are locally sourced.
Energy Technologies employs a balanced strategy of manufacturing and purchasing cables for sale. The company focuses its factory operations on higher-margin product lines, while lower-margin cables are sourced from strategic manufacturers located around the globe, coupled with a wholesale distribution department, which capitalises on complimentary products & services in strategic market segments. This approach enhances cash flow management and operational efficiency.
The company’s Rosedale facility is a significant upgrade in its manufacturing capabilities. Situated on 122 acres, this location provides ample space for future expansion. The plant’s high level of automation supports production efficiency, processing up to 250 tonnes of copper monthly, with room for additional capacity if demand rises.
Strategic Review of Business Operations
Energy Technologies has focused on building strong partnerships to expand its product range and market reach. A key strategy for growth is to develop alliances with larger entities to enable Bambach to scale its distribution and provide specialized products to niche markets.
One such alliance is with Gantner Instruments, a full-service photovoltaic (PV) monitoring and control supplier for utility scale PV power plants. Under the distribution agreement with Gantner, Bambach supplies the renewable energy sector with certified, specialized low-voltage cables, connectors, weather stations and DC combiner boxes. These products are essential for delivering power from solar panels to inverters, which is a critical component in renewable energy infrastructure.
According to projections, the annual spending on utility-scale solar farms in Australia will reach AU$6 billion over the next decade. This growth is segmented into three phases:
Initial surge (2024 to 2026): AU$2.5 billion to $3.5 billion annually.
Accelerated growth (2027 to 2029): AU$3.5 billion to $5 billion annually.
Mature market phase (2030-2034): AU$4.5 billion to $6 billion annually.
Another critical partnership for Energy Technologies is with Tratos Group, a leading Italian cable manufacturer. This agreement has significantly expanded Energy Technologies’ product portfolio, allowing the company to offer medium- and high-voltage cables, as well as solutions for subsea transmission lines, offshore and onshore wind turbines, and mining operations. These additions bolster the company’s ability to address the growing demand in the renewable energy and mining sectors, while also diversifying its market reach.
Manufacturing and Purchased Sales Strategy
Energy Technologies employs a dual approach to sales through a combination of manufactured and purchased products. Its factory in Rosedale focuses on high-margin, specialized cable products that cater to sectors such as renewable energy, rail road, and infrastructure.
For FY25, the company is forecasting manufactured gross margins exceeding 23 percent. To complement its manufacturing capabilities, the company also engages in purchased sales by sourcing lower-margin products from rigorously vetted suppliers throughout the globe. This approach ensures Energy Technologies can meet market demand without overextending its manufacturing resources. Purchased sales for FY25 are projected to contribute an additional AU$6.7 million to the company’s revenue.
Company Highlights
Energy Technologies produces low-, medium-, and high-voltage cables, with over 90 percent of its materials sourced locally in Australia.
The company is strategically aligned with electrification and renewable energy trends, catering to infrastructure, solar, wind and mining industries.
Key partnerships with Gantner Instruments and Tratos Group expand its product offerings for solar farms, wind turbines and subsea transmission lines.
The company’s partnerships position it as a comprehensive supplier for large-scale renewable energy projects, projected to grow to AU$6 billion annually by 2034.
Energy Technologies (ASX:EGY)CEO Nick Cousins shared that the company is refocusing its business strategy, focusing on the burgeoning renewable energy sector in Australia.
"We're looking at what is essentially a new business," said Cousins in an interview with the Investing News Network, highlighting the fundamental shift to capitalise on tailwinds supporting renewable energy initiatives.
Disclaimer: This interview is sponsored by Energy Technologies (ASX:EGY). This interview provides information which was sourced by the Investing News Network (INN) and approved by Energy Technologies in order to help investors learn more about the company. Energy Technologies is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Energy Technologiesand seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
Provaris (ASX:PV1), a leading innovator in the green hydrogen sector is well-positioned to be an important part of the European green hydrogen supply chain through its groundbreaking compressed hydrogen solutions. The company's proprietary tank IP and innovative ship design support its vision to develop a portfolio of integrated green hydrogen projects.
Provaris’ innovative H2Neo carrier solution offers a more efficient and cost-effective alternative to traditional methods of hydrogen storage and transport. These carriers are designed to address the growing global demand for clean energy while overcoming the logistical challenges associated with green hydrogen distribution.
Provaris is expanding its portfolio to include CO2 storage technologies, a move that aligns with the company's core competencies in gas handling and storage, while addressing the growing demand for large scale CO2 storage and transport solutions in the European market, and beyond.
Company Highlights
Provaris is a leading innovator in the green hydrogen sector, leveraging its proprietary compressed hydrogen technology to develop sustainable, clean energy supply chains across Europe.
The company combines proven technology and unique IP for cost-effective hydrogen storage and transport solutions, with a first-mover advantage through its proprietary ship design and low-cost delivery.
Provaris has established strong strategic partners across Europe, enhancing its credibility in delivering hydrogen to market
In addition to green hydrogen, the company is leveraging its tank IP for application into the established CO2 storage and shipping market.
This Provaris Energy profile is part of a paid investor education campaign.*
Provaris presents a unique and attractive investment proposition in the rapidly expanding green hydrogen sector in Europe. With its proprietary technology, strategic partnerships and integrated business model, Provaris is well-positioned to capitalize on the growing demand for clean energy solutions.
Company Highlights
Provaris is a leading innovator in the green hydrogen sector, leveraging its proprietary compressed hydrogen technology to develop sustainable, clean energy supply chains across Europe.
The company combines proven technology and unique IP for cost-effective hydrogen storage and transport solutions, with a first-mover advantage through its proprietary ship design and low-cost delivery.
Provaris has established strong strategic partners across Europe, enhancing its credibility in delivering hydrogen to market
In addition to green hydrogen, the company is leveraging its tank IP for application into the established CO2 storage and shipping market.
Overview
Provaris (ASX:PV1), a leading innovator in the green hydrogen sector, is well-placed to become integral to the European green hydrogen supply chain through its groundbreaking compressed hydrogen solutions. The company focuses on developing regional projects that span the entire value chain, from production to export, with a particular emphasis on delivering hydrogen with the highest energy efficiency and the lowest cost.
With a vision to develop a portfolio of integrated green hydrogen projects, Provaris leverages its proprietary tank IP and innovative ship design, with a focus on collaborating with world-class partners.
Compression supports the development of simple, scalable and energy-efficient green hydrogen supply chains for the European market.
Provaris stands at the forefront of the green hydrogen revolution, dedicated to developing innovative and efficient supply chains for zero-carbon energy in the European region. With its rapid adoption of green hydrogen, the European market presents a golden opportunity for Provaris. As countries across the continent seek to decarbonize their economies, the demand for sustainable energy sources has skyrocketed. Provaris’ use of compressed hydrogen technology offers a compelling solution to the logistical challenges associated with hydrogen distribution, replacing complexity with simplicity to lower the delivered cost.
Core Product: H2Neo Carrier
At the heart of Provaris’ innovative H2Neo carrier solution is its proprietary compressed hydrogen technology. The H2Neo offers a more efficient and cost-effective alternative to traditional methods of hydrogen storage and transport. These carriers are designed to address the growing global demand for hydrogen while overcoming the logistical challenges associated with green hydrogen distribution.
Key Features and Benefits
Enhanced Safety: Provaris’ compressed hydrogen technology prioritizes safety in storage and transportation.
Cost-effectiveness: By eliminating the need for complex liquefaction or ammonia synthesis processes, the company's solutions reduce overall costs.
Scalability: The technology is adaptable to various project sizes, from regional supply chains to large-scale international exports.
Environmental Sustainability: Compressed green hydrogen aligns with global efforts to reduce carbon emissions and transition to cleaner energy sources.
Recent Concept Design Study reaffirms simplicity and efficiency of compressed hydrogen enables low-cost supply for Europe.
Innovative Vessel Designs
Complementing its innovative compressed hydrogen technology, Provaris is developing new vessel designs specifically tailored for hydrogen transport. These specialized ships are engineered to safely and efficiently carry compressed hydrogen across maritime routes, opening up new possibilities for international green energy trade.
CO2 Storage and Transport
As part of its commitment to sustainable energy solutions, Provaris is expanding its portfolio to include CO2 storage technologies. This strategic move aligns with the company's core competencies in gas handling and storage, while addressing the growing demand for large scale CO2 storage and transport solutions in the European market, and beyond.
Provaris is leveraging its expertise in compressed gas handling to develop innovative CO2 solutions, through the following strategies.
Adapting Hydrogen Tank Designs: The company is modifying its proprietary compression systems to efficiently capture and store CO2 from industrial processes.
Collaboration with Global Partner: Provaris announced a Joint Development Agreement with Yinson Product AS, a global energy infrastructure and technology company, which is developing CO2 infrastructure and supply chains.
Extension to Onshore Storage Solutions: Utilizing its experience in gas storage, Provaris is developing land-based facilities for intermediate CO2 storage before permanent sequestration.
Strategic Partnerships
At the forefront of Provaris Energy's European strategy is a groundbreaking Memorandum of Understanding (MoU) with Norwegian Hydrogen and Germany-based international energy company Uniper Global Commodities. This tripartite agreement marks a pivotal step in developing hydrogen supply chains, leveraging each partner's unique strengths.
The collaboration strategically capitalizes on the Nordic region's geographical advantages, facilitating efficient hydrogen distribution across Europe, with a particular focus on the German market. Germany is reliant on the import of over 70 percent of its hydrogen demand by 2030. This partnership not only underscores Provaris' role as an enabler for hydrogen transport at scale, but also a commitment by Uniper to support the development of Provaris’ unique approach.
A significant milestone is expected in the December 2024 quarter, including a maiden Term Sheet for supply and offtake.
Provaris also has a joint development agreement with Yinson Production, a global energy infrastructure and technology company, to explore CO₂ storage and marine transportation solutions, leveraging Provaris' hydrogen tank technology for enhanced carbon capture capabilities.
In The Netherlands, Provaris is collaborating with Global Energy Storage (GES) to develop a bulk-scale hydrogen import facility within Rotterdam’s global energy hub. The agreement involves the completion of a comprehensive prefeasibility study to demonstrate the technical and economic viability of berthing and unloading of Provaris’ H2Neo compressed hydrogen carriers. Provaris will be responsible for the transportation of the hydrogen in the H2Neo carriers and GES will be responsible for the discharge and injection into the hydrogen grid.
CleanTech Lithium PLC (AIM: CTL, Frankfurt:T2N, OTCQX:CTLHF), an exploration and development company advancing sustainable lithium projects in Chile, is pleased to provide a corporate activity update which includes appointment of Anthony (Tony) Esplin as the Chief Executive Officer Designate ("CEO Designate") and an update to the planned Australian Securities Exchange ("ASX") listing.
Mr Esplin, who has over 30 years of experience at international mining companies including in Latin America, Australasia and Indonesia, is joining the Company with immediate effect under a part-time consultancy contract and will subsequently assume the role of CEO on a full-time basis, and become a board director, once the Company lists on the ASX.
Given the various holidays and the fact that the Company needs to update the ASX prospectus a decision was made to target the ASX listing in early Q1 2025.
The Company confirms it is working towards submitting the Special Lithium Operating Contract ("CEOL") for the Laguna Verde project before the deadline of 31st December 2024.
Significant quantities of battery-grade lithium carbonate will be produced before the end of the year for potential strategic partners to start product qualification.
Steve Kesler, Executive Chairman and Interim Chief Executive Officer, CleanTech Lithium PLC, said:
"We are delighted that Tony has agreed to join us as CEO, initially under a consultancy arrangement to assist us with our planned ASX listing, and then as our full-time CEO once we commence trading on the ASX. This concludes a relatively long process to identify the right candidate for this important role and we were very encouraged at the quality of the candidates who were keen to take up the reins at CleanTech Lithium.
"Tony's experiences of leading challenging international gold and base metal projects of scale through development into production, especially in Latin America, will be invaluable as the Company moves our Laguna Verde project forward towards the commercial production of battery grade lithium from 2027 onwards. As a fluent Spanish speaker, he will also be in prime position to engage with the Chilean Government, regulatory bodies and especially the local communities whose continuing support for our projects will be critical to their success.
"In the meantime, I will continue in my role as Executive Chairman intending to move back to being the Company's Non-Executive Chairman when our Board believes the time is right. I look forward to working with Tony and continue to be confident in the future potential of our Company".
Tony Esplin, CEO Designate, said:
"I am excited to be joining CleanTech Lithium and looking forward to the opportunity to work in Latin America again. It is well known that the lithium market is going through a challenging time, but all analysts agree that the lithium price will recover in due course to meet the growing international demand for EVs and other forms of battery storage. In the meantime, CleanTech Lithium has placed itself very nicely to be the next major mover in the lithium sector in Chile, through the use of Direct Lithium Extraction ("DLE") and by adopting more sustainable methods of extracting lithium for a market keen to see more "green lithium" supply. We intend to be delivering on this vision for our shareholders over the next few years.
"I am impressed at the results I have seen from the Company's DLE pilot plant and downstream processing, as well as the innovative community relations programmes where the Company has entered into alliances with local communities and universities. I look forward to working with the Board, management and staff to deliver a successful project at Laguna Verde. Whilst that project will be our major focus for the time being, we also have other assets in Chile which we can progress over time, adding real upside to our Company's value proposition for investors".
Appointment of CEO Designate
Since April 2024, when the Company's Executive Chairman, Steve Kesler, also took on the role of Interim CEO, the Board has been actively searching for a CEO with the skills and experience to move the Company from its early "exploration & technical testing phase" in Chile towards a "development and production phase" on its key assets. This role requires experience in driving and managing mineral resource projects in Latin America, delivering on development plans, raising the necessary funds for such projects and working with Government representatives and local communities to ensure those projects achieve their objectives in a sustainable manner. Following completion of the Laguna Verde "PFS" due to complete in Q1 2025, the Company will enter a new phase. Key activities will be bringing in a strategic partner, negotiating offtake agreements, completing the Definitive Feasibility-Study "DFS", permitting and putting in place the project finance to start construction and commencement of production at Laguna Verde, which is anticipated by end 2027. The Company has been working with executive search firm Heidrich & Struggles, based out of Melbourne Australia, to identify the best candidate for this important role and the Board is confident that Tony Esplin is the right appointment.
Tony Esplin
Mr Esplin is an Australian national who has over 30 years' experience in mining including at senior executive and board level positions primarily with tier one gold and base metals producers, including with Newmont Corporation, which ranked for more than a decade amongst the leading miners on the Dow Jones Sustainability World Index.
He has significant experience in managing large-scale emerging markets assets, including in Peru, Mexico, Suriname, Indonesia, Australia and Papua New Guinea ("PNG"). Mr Esplin worked and lived for over 12 years in Latin America and is fluent in Spanish. Most recently, he was Chief Operating Officer at Discovery Silver Corporation, a TSX-listed company with development projects in Mexico, where he also had broader responsibilities in developing project finance options and investor relations.
Prior to this, Mr Esplin spent three years as Executive Managing Director of Barrick Niugini, responsible for all facets of the business in PNG. Barrick Niugini is a joint venture between Barrick Gold and Zijin Mining and the role involved challenging negotiations with the PNG Government, regulators and with local community stakeholders, as well as establishing complex licence extensions.
Before Barrick Niugini Mr Esplin spent over 10 years at Newmont in various roles including as General Manager for the Suriname Merian project, a joint venture with state-owned petroleum company, Staatsolle Maatschappij Suriname N.V., which was successfully brought onto commercial production on time and under budget. The role encompassed all aspects of managing the business in Suriname.
Before that, Mr Esplin spent 10 years at Newmont´s Yanacocha project in Peru, latterly as General Manager Operations responsible for mining, processing and infrastructure activities.
Anthony (Tony) Ian Esplin, aged 58, has held the following directorships and/or partnerships in the past 5 years:
Current
Past
Sierra Nevada De Santa Maria Pty Ltd
Barrick (Nuigini) Limited
Mr Esplin currently holds no ordinary shares or other securities in the Company.
There is no further information on Tony Esplin required to be disclosed under Schedule Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies.
Mr Esplin will support the Board immediately in the planned dual listing on ASX in a part-time consultancy role, with his full-time appointment commencing immediately upon the Company listing on the ASX. A further announcement will be made on that in time. He will be based in Australia increasing CleanTech Lithium's profile with investors, analysts and media before and after the ASX listing, developing relationships with potential strategic partners and off-takers whilst travelling to Chile to work with the team on the Company's projects, build a team with capacity to take the Laguna Verde project into production and liaise with Government, regulators and local communities.
Steve Kesler will continue as Executive Chairman for a few months to support Mr Esplin in his new position and will then step back to being Non-Executive Chairman as corporate governance guidelines in UK and Australia recommend.
After thorough discussion with the Company's ASX advisors, the Company considered various time constraints, including Australian summer holidays, and decided that it will be better positioned for a successful ASX listing by proceeding in early Q1 2025. This is a strategic move as the revised timeline means the Company will have produced substantial amounts of battery grade lithium carbonate for potential strategic partners to start product qualification, will have submitted the CEOL application for the Laguna Verde project and will be nearing completion of the Laguna Verde PFS. This will ensure the timing of the proposed listing is optimal to deliver the highest possible value to investors. It will also allow Mr Esplin to get up to speed on the Company's position and plans and then actively participate in the ASX listing.
CEOL application and sample lithium product
The Company is working towards submitting the CEOL for the Laguna Verde project before the deadline of 31st December 2024 and a further announcement confirming submission will be made in due course.
As announced on 21st November 2024, the downstream conversion process is successfully producing pilot scale samples of lithium carbonate. CleanTech Lithium is a leader in Chile in producing lithium carbonate using Direct Lithium Extraction ("DLE") at the pilot scale, marking a major milestone for the Company. The samples will be sent to a laboratory to confirm the grade and impurity profile, which is expected to be battery-grade and prepared for strategic partner qualification.
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain. The person who arranged for the release of this announcement on behalf of the Company was Gordon Stein, Director and CFO.
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
Notes
CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and development company advancing lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium's mission is to become a new supplier of battery grade lithium using Direct Lithium Extraction technology powered by renewable energy.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Viento Andino, and exploration stage projects in Llamara and Arenas Blancas (Salar de Atacama), located in the lithium triangle, a leading centre for battery grade lithium production. The two most advanced projects: Laguna Verde and Viento Andino are situated within basins controlled by the Company, which affords significant potential development and operational advantages. All four projects have good access to existing infrastructure.
CleanTech Lithium is committed to utilising Direct Lithium Extraction with reinjection of spent brine resulting in no aquifer depletion. Direct Lithium Extraction is a transformative technology which removes lithium from brine with higher recoveries, short development lead times and no extensive evaporation pond construction. www.ctlithium.com
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