Carbonxt raises $3m to meet high demand for its unique environmental product
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Carbonxt raises $3m to meet high demand for its unique environmental product
The pollution control company said the funding is predominately to build additional manufacturing capacity to meet the high level of demand for its AC pellet product.
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CarbonxtMatthew Quinn, Chairman of Carbonxt (Left) & Warren Murphy, MD of Carbonxt (Right)
Australian-based cleantech company, Carbonxt Group Limited has raised approximately $3.0m, amid strong demand for its activated carbon (AC) products.
Carbonxt products are used to reduce environmental pollutants, such as mercury and sulphur, in industrial processes that emit substantial amounts of harmful air pollutants.
The company’s products are used in industrial air purification, waste water treatment and other liquid and gas phase markets.
The funds will be used primarily to build additional manufacturing capacity for the company’s AC pellet product.
Carbonxt Managing Director, Warren Murphy, said the level of demand for the company’s activated carbon pellets has been far higher than expected.
“The demand further validates the company’s strategy to invest in new product development,” Murphy said. “We are keen to start construction of our new plant to meet this demand and take advantage of further revenue growth opportunities as the industry becomes more aware of our capabilities”.
Since listing on the ASX (ASX:CG1) in January 2018, demand for the company’s products has increased significantly, with revenue for the first half of 2019 tracking slightly above the previous forecasts of $8.2m, driven by increases across all product lines.
One of only a handful of AC pellet producers based in the US, Carbonxt is also benefitting from customer concerns about impending tariffs on AC products from China, from where the majority of AC pellets are currently imported.
The company is planning to develop a full-scale US plant in Gainesville, Florida, capable of producing an estimated 3,500 tons a year. The plant will be modelled on the company’s existing ACP plant at Arden Hills, Minnesota, which was commissioned in July 2018.
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