Environmental Clean Technologies Limited (ASX: ECT) (‘ECT’ or ‘the Company’) is pleased to provide the following update on its joint venture project with ESG Agriculture Pty Ltd (“ESG”).
Highlights:
Funding Milestones:
ECT secured $482,488R&D Loan, including contribution for JV seed funding
ECT secured, subject to shareholder approval, $647,512in further funding
Project Advancements: COLDry Fertiliser process design completed and tested; field trials to follow
Project Finance Progress: Targeting completion in Q1 CY25
Leadership Transition: Sam Rizzo transitions to Non-Executive Director role for ECT and Zero Quest
ECT and ESG have launched Zero Quest Pty Ltd, a joint venture with offices in Melbourne and Adelaide, Australia, focused on delivering innovative, zero-emission solutions for sustainable agriculture. As announced on 4 April and 15 July 2024 ESG is a solution provider of soil health products and advisory services, supporting growers on their practice change journey towards reducing their carbon footprint. ESG brings to the JV leading agricultural executives with proven results in engaging with growers and developing agricultural solutions. The collaboration with ESG spearheads the COLDry Fertiliser Project, a transformative initiative to reduce emissions and boost agricultural efficiency.
Key milestones:
Incorporation of Zero Quest Pty Ltd
Seed Funding: The partners have contributed $300,000
Field Trials Launch: Trials to begin immediately for the COLDry Fertiliser Project.
Zero Quest will be managed jointly by ECT and ESG, with Sam Rizzo (ECT) and Mark Scanlon (ESG) serving as foundation directors. Martin Hill, ECT’s CFO, will act as Company Secretary.
Field Trials and Strategic Goals
Zero Quest is set to conduct field trials with large-scale farmers across South Australia, Victoria, New South Wales, and the Philippines, evaluating diverse crop and soil types. The trials will be funded by the initial
$300,000 contributed by the JV partners and a further $100,000 that each of the JV partners are obliged to contribute in early 2025. Any additional capital raising (whether equity or debt) is to be contributed equally by the JV partners, unless otherwise mutually agreed. Running for up to six months, the trials will engage farmers under Memorandums of Understanding (MOUs), which are expected to transition into binding off- take agreements upon achieving the following objectives.
Field Trial Objectives:
1. Validate the fertiliser’s performance under real-world agricultural conditions, focusing on crop yield and soil health.
2. Environmental Impact Assessment: Measure reductions in carbon intensity and overall environmental footprint compared to conventional fertilisers.
3. Off-Take Agreements: Secure binding agreements with agricultural stakeholders based on trial success, paving the way for commercial production.
The Value of COLDry Fertiliser
The product, ‘COLDry Fertiliser’, is a blended fertiliser designed to match or surpass the performance of traditional chemical urea fertilisers, offering farmers a competitive and sustainable alternative.
The commercial proposition of COLDry Fertiliser to farmers is:
Lower cost
Same or better performance
Compatibility with existing spreading equipment
Lower emissions
Improved soil health benefits
Sam Rizzo, Director of ECT and Zero Quest, commented:
“The establishment and funding of Zero Quest, along with the launch of field trails, mark the culmination of many months of work across the various stages of the Joint Venture between ECT and ESG. This milestone is a strong indicator of progress under our ‘race to revenue model’ and now allows us to channel our focus towards delivering the COLDry Fertiliser Project.”
Mark Scanlon, Director of ESG and Zero Quest, commented:
“The launch of field trials is a significant milestone, showcasing the real-world benefits of our innovative fertiliser. Partnering with ECT underscores our commitment to sustainable practices, and we are confident these trials will demonstrate the transformative potential of this product for both farmers and the environment.”
Click here for the full ASX Release