Carbonxt Group (ASX:CG1) developing high-tech cleantech solutions, November 2021


by Lauren Evans

Carbonxt Group Limited (ASX:CG1) Managing Director Warren Murphy introduces the company's activated carbon products. This technology uses pellets and powders to remove noxious gases and toxins, which assists a range of industries in meeting compliance goals.

Lauren Evans: Hi, this is Lauren Evans for the Finance News Network. Joining me from Carbonxt Group (ASX:CG1) is Managing Director Warren Murphy. Warren, nice to meet you, and welcome to FNN.

Warren Murphy: Thanks, Lauren. Nice to be here.

Lauren Evans: So, first up, Warren, could you start with an introduction to the company?

Warren Murphy: Sure. We're a pollution control company. We specialise in cleaning the air and water from pollutants. That is, a cleantech company.

Lauren Evans: Thanks, Warren. And could you comment on the tailwinds driving cleantech generally?

Warren Murphy: There's a tremendous amount of money flowing into ESG stocks. There's a massive amount of investment, something like $50 billion plus that's been projected over the next couple of years. And, since president Biden has been elected, we've seen tremendous amounts of legislation and proposed legislation coming forward to drive the sector on.

Lauren Evans: And could you tell us about your products in more detail?

Warren Murphy: Principally, we produce activated carbon. Activated carbon looks like a sponge under a microscope. And in all those little holes, we capture the pollutants. And we produce two types of products, powdered activated carbon and pelletised versions of activated carbon products.

Lauren Evans: And would you be able to comment on your customer base and where your products are used?

Warren Murphy: Certainly. In the powdered activated carbon business, we capture mercury from coal-fired power stations. Typical types of companies -- the likes of Duke Energy and Wisconsin Power. In our pellet business, we typically sell to distribution companies. But we do have tolling arrangements with other large filtration companies, such as Purafil.

Lauren Evans: Thanks, Warren. And could you comment on the market opportunity?

Warren Murphy: The market opportunity is very large. The mercury capture market is about $150 million in market size. All of our market is in United States. The pellet market is, we believe, at the moment about US$250 million, but we are branching into other markets which are much larger in size.

Lauren Evans: So, now to financials and strategy, how is the company performing, and what's the goal?

Warren Murphy: The company is performing really well. The last quarter, we bounced back right back to where we were at the beginning of COVID. We were 81 per cent increase in revenue on the quarter. Since then, things have kicked on even further. And, yes, we're very happy to see, finally, cashflow positive, but more than that, just the growth track trajectory in front of us is really, really solid.

Lauren Evans: And the last question from me today, what can investors look forward to in the future?

Warren Murphy: We're planning to open our Kentucky pellet facility next year. That's an extra 5,000 tonnes of pellets, which we believe we've already pretty much sold out of. We've got the decarbonisation agenda that we spoke about earlier with President Biden driving on new products, new opportunities. And, most excitingly, from my perspective, because I'm a massive champion of this, is the nutrient pellets that we've established to capture phosphate and nitrogen from the water supply. I think that's a massive market opportunity for us.

Lauren Evans: Well, Warren Murphy, thanks for the update today. And I look forward to hearing from you again.

Warren Murphy: Thank you very much.


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