How Will ECT’s New Approvals and Restructuring Shape Its Fertiliser Future?

Regulatory Milestones Clear Path for Bacchus Marsh Project

Environmental Clean Technologies Limited (ECT) has reached a significant milestone by securing formal planning approval from the council and environmental protection authority (EPA) for its Bacchus Marsh fertiliser facility. These approvals, granted in June 2025, remove the final regulatory obstacles, positioning the company to commence construction once technical and commercial benchmarks are met. This progress underscores ECT’s commitment to advancing its COLDry technology, which innovatively combines lignite with nitrogen to produce a fertiliser aimed at reducing carbon emissions and improving nutrient efficiency.

Strategic Delay in Field Trials Reflects Prudence

While regulatory green lights have been secured, ECT has deferred its field trials to better align with cropping cycles and to allow for additional testing. This decision, made in collaboration with its joint venture partner ESG Agriculture under the Zero Quest initiative, reflects a cautious approach to scaling operations. The company is prioritising product stability and optimisation, as evidenced by ongoing lab testing that has so far confirmed minimal degradation of the fertiliser granules. The rescheduling aims to ensure that field trials yield meaningful and reliable data, critical for commercial validation.

Capital Management and Corporate Restructuring

In parallel with operational developments, ECT completed a $275,000 tranche 2 placement, issuing 275 million shares at a nominal price to bolster its cash reserves. The company’s cash position stood at $478,000 at quarter-end, with an anticipated R&D tax refund of approximately $400,000 expected in October 2025. To extend runway and improve capital efficiency, ECT has implemented a restructuring program that includes consolidating its head office from South Yarra to Bacchus Marsh, outsourcing finance functions following the retirement of CFO Martin Hill, and refreshing its board with new appointments such as Faldi Ismail as Chair and Justin Mouchacca as a non-executive director.

Refocusing Strategy on Flexibility and Value Creation

ECT is recalibrating its strategic focus to balance the exploitation of its existing asset base with the pursuit of complementary technology acquisitions. This shift aims to create a capital-light operating model that reduces risk exposure amid extended development timelines. The company remains confident in the long-term potential of its COLDry technology to deliver low-emission fertilisers but is aligning funding and investment decisions with clear technical and commercial milestones. This disciplined approach is designed to support sustainable growth and shareholder value creation.

Looking Ahead

With regulatory hurdles cleared and a more streamlined corporate structure in place, ECT is poised to advance its technology development and strategic partnerships. The upcoming months will be critical as the company initiates formal lab-scale plant growth trials and prepares for strategically timed field trials. Investors will be watching closely to see how these developments translate into commercial progress and whether the company can successfully navigate the challenges of scaling its innovative fertiliser technology.