Zeotech executes MoU with Protekta for potential offtake of manufactured zeolites
Protekta uses manufactured zeolite in product used to prevent milk fever in cows
Large sample of manufactured zeolites to be supplied to Protekta for commercial validation
Special Report: Zeotech could advance its mineral processing technology in North America after executing a memorandum of understanding (MoU) for the potential offtake of its manufactured zeolites with animal nutrition producer Protekta.
Zeolites – also known as molecular sieves – are porous mineral frameworks, naturally occurring or manufactured, composed mainly of aluminium, silicon and oxygen.
Their three-dimensional structures can trap, exchange or release ions and molecules, enabling zeolites to find applications in diverse industrial and environmental contexts.
These include greenhouse gas mitigation, agriculture, animal supplements and environmental remediation.
Zeotech (ASX:ZEO) is looking to be Australia’s first producer of manufactured zeolite using its proprietary mineral processing technology.
It has lodged patent applications for the synthesis of low-cost zeolites from coal fly ash and lithium process by-product, while testing of its manufactured zeolites to reduce landfill methane emissions has returned promising results.
Zeolites for animal nutrition
The company has now taken the first step towards securing offtake of its manufactured zeolites.
ZEO’s MoU with Protekta establishes the framework to negotiate, in good faith, the terms of a potential manufactured zeolite offtake agreement.
Protekta has a portfolio of innovative and evidence-based products designed to prevent illness through optimal nutrition, including a leading solution that contains manufactured zeolite that is used to prevent subclinical hypocalcemia, also known as milk fever, in cows.
ZEO, which previously supplied Protekta with product samples for testing and analysis in December 2022, will aim to provide a large sample of manufactured zeolites for further commercial validation.
The two companies will also consider a potential joint venture or alternative profit-sharing structures that could advance ZEO’s mineral processing technology in North America.
“We are pleased to be collaborating with an innovative company such as Protekta, and the potential to supply our manufactured zeolite as a key ingredient to one of their leading animal nutrition products,” ZEO chief executive Scott Burkhart said.
“The MoU provides a framework for ongoing collaboration, with the aim of supplying a large product sample for further validation, alongside the potential for an offtake agreement that would advance the commercial readiness of the company’s proprietary mineral processing technology.”
Protekta chief executive Morten Jakobsen said his company was delighted to extend its relationship with ZEO, advancing the wellbeing of animals and the potential to use manufactured zeolite for one of its primary products.
This article was developed in collaboration with Zeotech, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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