Zeotech Limited’s latest quarterly report highlights a robust Preliminary Feasibility Study for its AusPozz™ low-carbon cement project, alongside successful commercial concrete trials and promising methane reduction technology.
- AusPozz™ Project PFS delivers $406m after-tax NPV8 and 42% IRR
- Commercial-scale concrete trials show up to 40% cement replacement with improved performance
- Methane control biofilter reduces landfill emissions by over 90%
- MOUs secured with major industry players including Holcim and MSI
- Planning underway for Definitive Feasibility Study and production by 2029
AusPozz™ Project – A Compelling Business Case
Zeotech Limited has revealed a strong Preliminary Feasibility Study (PFS) for its AusPozz™ Project, a pioneering low-carbon supplementary cementitious material (SCM) derived from ultra-high purity kaolin sourced from its Toondoon Kaolin Project in Queensland. The PFS outlines a 20-year project life with a net present value (NPV8) of $406 million after tax and an internal rate of return (IRR) of 42%, underscoring the economic viability of the venture. With a payback period of just over two years post-commissioning, the project promises robust cash flows exceeding $1 billion over its lifespan.
The proposed manufacturing facility, located at the Port of Bundaberg, is designed for an initial capacity of 300,000 tonnes per annum, with scalability options to double output. This vertical integration strategy aims to position Zeotech as a key supplier in the growing market for sustainable building materials, responding to accelerating decarbonisation demands in construction.
Concrete Trials Validate Technical and Environmental Benefits
Zeotech’s commercial-scale concrete demonstration, conducted at Holcim Australia’s Brisbane batching plant, marked a significant milestone. The trials demonstrated that AusPozz™ can replace up to 40% of traditional cement in concrete mixes, notably improving strength and reducing shrinkage. Independent testing confirmed superior performance across multiple concrete grades, including challenging 40MPa mixes commonly used in large infrastructure projects such as wind farms.
Importantly, the substitution of cement with AusPozz™ offers a substantial reduction in embodied carbon, estimated at nearly 230,000 tonnes of CO₂ equivalent annually at full production. This environmental benefit equates to removing over 53,000 petrol cars from the road each year, or planting millions of trees, highlighting AusPozz™’s potential to contribute meaningfully to Australia’s net-zero targets.
Methane Control Program Shows Promising Results
Beyond cement replacement, Zeotech’s Horizon 2 initiative targeting methane emissions control has yielded encouraging outcomes. The methane control biofilter, zeoteCH₄®, developed in collaboration with Griffith University, consistently reduced simulated landfill methane emissions by over 90%. This breakthrough technology addresses a potent greenhouse gas with 28 times the warming potential of CO₂, positioning Zeotech at the forefront of innovative environmental solutions.
Following presentations to the NSW Environmental Protection Authority, Zeotech has launched an Expressions of Interest campaign for on-site landfill trials, already attracting initial responses. These trials, expected to commence in early 2026, could pave the way for commercial deployment of this novel biofilter technology.
Strategic Partnerships and Market Engagement
Zeotech has strengthened its commercial footing through Memorandums of Understanding with industry heavyweights such as Holcim Australia and Jiangsu Mineral Sources International Trading Co (MSI). The MSI agreement outlines potential multi-year supply commitments for kaolin products, enhancing the company’s revenue diversification and export prospects.
Active engagement with construction industry stakeholders, including Laing O’Rourke and Queensland’s Department of Transport and Main Roads, alongside sponsorship of industry events, reflects Zeotech’s commitment to building market awareness and adoption of AusPozz™.
Looking Ahead – Definitive Feasibility and Production Timeline
With the PFS completed, Zeotech is advancing towards a Definitive Feasibility Study (DFS) slated to begin in Q3 2025. This next phase will refine technical, regulatory, and commercial parameters, including environmental approvals and binding offtake agreements. The company targets a Final Investment Decision in early 2026, aiming for full-scale production by Q1 2029.
Meanwhile, Zeotech continues to optimize its kaolin resource base, with plans for further drilling and resource upgrades at Toondoon and Abercorn projects. The company also navigates operational challenges such as securing a reliable commercial-scale kiln for metakaolin production, critical for scaling AusPozz™ manufacturing.
Financially, Zeotech maintains a cash position of $2.35 million, bolstered by $1.47 million from recent option exercises, providing runway to support ongoing development activities.
Bottom Line?
Zeotech’s AusPozz™ Project is poised to disrupt the low-carbon cement market, but execution of the DFS and market uptake will be key to unlocking its full potential.
Questions in the middle?
- Will Zeotech secure binding offtake agreements to underpin AusPozz™ production?
- How will the company resolve the commercial-scale kiln challenges for metakaolin calcination?
- What is the timeline and scale potential for methane biofilter on-site landfill trials?