Environmental Clean Technologies signs offtake MoU with ESG Agriculture
Testing to determine optimal granulated soil health product
JV eyes eventual production of up to ~52,000tpa of finished product from ECT’s Bacchus Marsh project
Special Report: Environmental Clean Technologies is a step closer towards commercialising its environmentally friendly COLDry technology after signing a binding memorandum of understanding for potential offtake with ESG Agriculture.
The net-zero COLDry process uses low temperature and low pressure to dewater lignite and waste biomass to produce an upgraded feedstock for use in high-value applications targeted at the agriculture, industry and energy sectors.
Environmental Clean Technologies’ (ASX:ECT) immediate target applications for the technology include soil health products and syngas suitable for manufacturing methanol, ammonia, hydrogen and other energy vectors.
Highlighting investor confidence in the tech, the company recently raised $1.5m through a placement of shares priced at 0.5c each – a 25% premium to the last traded price of 0.4c – to support development works at its Bacchus Marsh commercial demonstration plant.
Key step forward
The company is now another step closer towards commercialising COLDry after signing a binding MoU with ESG Agriculture for the offtake of a blended COLDry feedstock suitable for a granulated soil health product.
With the agricultural sector facing unprecedented challenges such as the soaring costs of conventional fertilisers, deteriorating sustainability, collapsing carbon content in soils and the pervasive impacts of climate change, the agreement has the potential to be hugely significant.
Under the first two phases of the agreement, the two companies will carry out a test program to blend and granulate composite COLDry pellets to determine optimal product result, followed by assessment of granulation process design and feedstock blends to drive price and complete the binding offtake agreements this quarter.
Subsequent phases will see expanded field trials and end-user marketing during the construction phase of the Bacchus Marsh project, optimise production up to ~52,000tpa of finished product, and further R&D to expand product options by optimising production processes and formulations.
Once the initial plant capacity volume has been sold under offtake, the JV will assess further optimisation of production capacity at Bacchus Marsh and other locations, as well as develop markets for the char product produced through ECT’s proposed pyrolysis process.
“The MoU with ESG is a pivotal moment for us marking a step towards commercialisation and will build shareholder confidence. It marks the start of an exciting collaboration to enhance soil health,” managing director Sam Rizzo said.
“This joint (venture) reflects our commitment to commercialising the opportunities provided by ECTs innovation and sustainability and sets the stage for significant growth and impact in agriculture and beyond.
“While it’s just the beginning within Australia’s $7 billion fertiliser market, it’s one of many steps we’re eager to take, both here and globally.”
ESG agriculture director Mark Scanlon said the MoU enhanced its capacity to provide end-to-end value chain solutions and to support the agricultural sector.
This article was developed in collaboration with Environmental Clean Technologies, 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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