How Environmental Clean Technologies Is Advancing COLDry Fertiliser Amid Losses
Environmental Clean Technologies Limited reported a $3.52 million net loss for FY2025, marking a modest 5% improvement, while making significant progress in commercialising its COLDry fertiliser technology and securing over $1.7 million in new capital.
- Net loss narrowed by 5% to $3.52 million
- Revenue declined 26% to $14,464
- Progress in COLDry fertiliser joint venture and regulatory approvals
- Raised $1.7 million via share placements and convertible notes
- Material uncertainty noted on going concern due to operating losses
Financial Performance and Capital Management
Environmental Clean Technologies Limited (ASX – ECT) reported a net loss of $3.52 million for the year ended 30 June 2025, a slight improvement from the $3.71 million loss recorded in the prior year. Revenues from ordinary activities fell by 26% to just $14,464, reflecting the company’s ongoing focus on research and development rather than commercial sales at this stage.
Despite the operating loss, ECT successfully raised capital through two share placements totaling $750,000 and a $1.13 million convertible note facility. These funds are earmarked to support ongoing commercialisation efforts and working capital requirements. The company also prudently managed cash outflows, which remained consistent with prior periods at around $600,000 to $650,000 per quarter.
Progress on COLDry Fertiliser Commercialisation
A key highlight for the year was the advancement of the COLDry lignite-nitrogen fertiliser project through the Zero Quest joint venture with ESG Agriculture. The partnership formalised in late 2024 and has since progressed through pilot-scale testing to large-scale field trials, including regulatory approvals and initial deliveries to South Australian farmers.
The company completed installation and commissioning of fertiliser granulation equipment and secured conditional approvals from local councils and the EPA. These milestones pave the way for commercial-scale production targeting up to 30,000 tonnes per annum, with plans to expand to 50,000 tonnes in subsequent phases.
Technology Development and Intellectual Property
ECT continues to develop its proprietary COLDry and HydroMOR technologies, which focus on low-emission lignite upgrading and cleaner iron production methods. The company secured additional patents in Europe, Australia, and Russia during the year, with pending applications in several other jurisdictions, reinforcing its intellectual property position.
While the HydroMOR process remains in development, the COLDry process has progressed from pilot to demonstration scale, validating its potential as a cost-effective, low-emission solution for lignite dewatering and upgrading.
Governance and Leadership Changes
The year saw several board and executive changes, including the appointment of Faldi Ismail as Non-Executive Chairman and Justin Mouchacca as Non-Executive Director. Managing Director Sam Rizzo resigned in June 2025, with leadership transitions underway. These changes coincide with a strategic recalibration aimed at enhancing operational efficiency and exploring complementary technology acquisitions.
Going Concern and Risk Considerations
The company’s financial statements were audited with an unqualified opinion but included a material uncertainty related to going concern. This reflects the operating losses, net current liabilities exceeding current assets, and reliance on future funding and successful commercialisation to sustain operations. Management has outlined cost reduction initiatives and capital management strategies to mitigate these risks.
Bottom Line?
As Environmental Clean Technologies advances its commercialisation milestones, investors will watch closely how the company navigates funding challenges and scales production.
Questions in the middle?
- When will COLDry fertiliser reach consistent commercial-scale revenue generation?
- How will recent leadership changes impact strategic execution and operational momentum?
- What are the prospects and timelines for HydroMOR technology commercialisation?
