Leadership Shakeup and Acquisition Signal Risky Pivot for ECT

A Strategic Acquisition with Environmental Impact

Environmental Clean Technologies Limited (ASX, ECT) has announced a transformative step in its corporate evolution by entering into a binding agreement to acquire 100% of Terrajoule Pty Ltd. This acquisition grants ECT exclusive access to license Rice University’s proprietary Flash Joule Heating (FJH) technology, a cutting-edge method designed to remediate soils contaminated by persistent pollutants such as PFAS (per- and polyfluoroalkyl substances) and heavy metals.

Developed by Professor James Tour and his team at Rice University, the FJH process; also known as Rapid Electrothermal Mineralisation; uses intense, short electric pulses to heat contaminated soil to approximately 1,000°C within seconds. This rapid heating breaks the notoriously strong carbon-fluorine bonds in PFAS compounds, effectively destroying them and converting harmful substances into benign calcium fluoride. Laboratory results have demonstrated defluorination efficiencies exceeding 96%, with near-total removal of perfluorooctanoic acid (PFOA), one of the most challenging PFAS pollutants.

Funding and Corporate Restructuring

To support this acquisition and further technology development, ECT successfully raised $3 million through a placement of 50 million shares priced at 6 cents each. The capital raise, led by Peloton Capital, will primarily fund the advancement of the FJH technology, repay outstanding convertible loans, and provide working capital. The first tranche of the placement has already been completed, with the second tranche pending shareholder approval at the upcoming AGM scheduled for 24 November 2025.

Alongside this strategic pivot, ECT has refreshed its corporate strategy to focus on building a diversified portfolio of high-impact, disruptive technologies. This includes continuing development of its existing patented COLDry technology for fertiliser production, while integrating the newly acquired FJH technology into its offerings.

Leadership Changes Signal New Direction

In a significant leadership update, CEO John Tranfield resigned effective October 2025, with Faldi Ismail transitioning from Non-Executive Chairman to Executive Chairman. Mr Ismail’s extensive experience in capital markets and business development is expected to provide hands-on leadership to drive the company’s refreshed strategy and operational priorities, particularly the integration and commercialisation of the Terrajoule acquisition.

Looking Ahead, Commercialisation and Growth

Completion of the Terrajoule acquisition remains subject to shareholder approval and the execution of licensing agreements with Rice University. The deal includes performance rights tied to key milestones such as demonstrating the ability to remediate 5kg of soil within 30 minutes and securing commercial contracts generating at least US$2.5 million in revenue or equivalent project funding.

With a cash balance of $559,000 as of 30 September 2025 and anticipated reduced cash outflows, ECT is positioning itself to accelerate development and commercialisation efforts. The company aims to leverage its relationship with Professor Tour’s team to refine the FJH technology and expand its environmental remediation solutions.

By diversifying its technology portfolio and focusing on scalable, disruptive innovations, ECT is seeking to enhance shareholder value and establish a leadership position in the emerging market for PFAS and heavy metal soil remediation.