ECT Accelerates COLDry Fertiliser Commercialisation with New JV and Field Trials
Environmental Clean Technologies Limited has formed a joint venture and launched field trials for its innovative COLDry lignite-nitrogen fertiliser, marking a pivotal step toward commercialisation and revenue generation.
- Formation of Zero Quest Pty Ltd joint venture with ESG Agriculture
- Commencement of large-scale field trials across multiple Australian states
- Secured $1.13 million in non-dilutive funding including R&D loan
- Leadership change with John Tranfield appointed CEO to drive execution
- Targeting binding offtake agreements and project financing in 2025
Joint Venture Formation Signals Strategic Commitment
Environmental Clean Technologies Limited (ASX: ECT) has taken a decisive step in advancing its COLDry lignite-nitrogen fertiliser technology by establishing a 50-50 joint venture, Zero Quest Pty Ltd, alongside ESG Agriculture. Each party contributed $300,000 initially, with plans for further funding injections early in 2025. This partnership aims to commercialise the fertiliser technology and conduct extensive field trials, underscoring ECT's commitment to sustainable agricultural innovation.
Field Trials Launch Across Key Agricultural Regions
Production of the lignite-nitrogen blended fertiliser granules began in December 2024, with field trials scheduled to commence in January 2025 across South Australia, Victoria, New South Wales, and Queensland. These trials are designed to validate the product's agronomic performance and environmental benefits, including a 50% reduction in urea usage, improved soil health, and lower carbon emissions. Engagement with farmers through Memorandums of Understanding aims to secure future offtake agreements, positioning the product for market entry.
Leadership Transition to Accelerate Project Execution
In a strategic leadership reshuffle, John Tranfield, formerly Engineering Manager, has been promoted to CEO. His mandate is to spearhead the operational execution of the nitrogen fertiliser component of the Bacchus Marsh Project, which is central to ECT's 'race to revenue' strategy in 2025. Meanwhile, Sam Rizzo has transitioned to a Non-Executive Director role, maintaining strategic oversight and representing ECT on the Zero Quest board.
Financial Position and Funding Initiatives
ECT secured $482,000 through an R&D loan facility and entered a convertible note deed for $1.13 million, subject to shareholder approval. The company also repaid a previous loan facility of $984,000, reflecting prudent financial management. Despite a net cash outflow from operations of $655,584 during the quarter, ECT maintains a clear path toward securing additional financing, with discussions underway and a financial close targeted for Q2 2025.
Looking Ahead: Commercialisation and Market Entry
With field trials set to validate the COLDry fertiliser's performance in early 2025, ECT aims to convert these results into binding offtake agreements with agricultural stakeholders. The company’s progress in securing regulatory approvals and completing process design milestones further supports its commercialisation timeline. The coming months will be critical as ECT navigates financing options and prepares for market launch, potentially transforming its innovative technology into a sustainable agricultural solution.
Bottom Line?
ECT’s next quarter will be pivotal as field trials and financing efforts converge to define its commercial trajectory.
Questions in the middle?
- Will the field trials confirm the anticipated environmental and agronomic benefits of the COLDry fertiliser?
- How will the convertible note approval impact ECT’s capital structure and funding runway?
- What are the prospects and timelines for securing binding offtake agreements post-trials?
