Carbonxt Group Limited (ASX: CG1) today announced it has secured an expanded agreement to supply Powdered Activated Carbon (PAC) to Reworld, a prominent US provider of sustainable waste solutions. Carbonxt is a cleantech company that develops and markets specialised Activated Carbon products, focused on capturing contaminants in industrial processes that emit harmful pollutants. It produces Powdered Activated Carbon and Activated Carbon pellets for use in industrial air purification and wastewater treatment. Under the revised agreement, four additional Reworld waste-to-energy facilities will transition to Carbonxt from 1 January 2027, increasing its annual PAC supply to Reworld by approximately 25 per cent. These additional volumes are set to run for the remaining term of the existing contract, through to December 2028.
This expansion is anticipated to contribute approximately $1.0 million in revenue for FY27, with gross margins expected to remain consistent. Consequently, Carbonxt has updated its FY27 revenue outlook, now expecting it to be at least 40 per cent higher than FY26, an increase from its prior forecast of over 33 per cent. This projection is based on the Company’s existing business and assumes an AUD/USD exchange rate of 0.71, excluding any contribution from its Kentucky facility. Reworld’s decision to expand its relationship was influenced by the sustainable, wood-based origins of Carbonxt’s PAC, crucial for removing mercury, dioxins, and furans from emissions in their waste-to-energy facilities.
To support the heightened demand, Carbonxt is installing an additional mill at its Black Birch facility in Swainsboro, Georgia. This installation, expected over the next two to three months, will double Black Birch’s production capacity to approximately 12,000 tons annually and enhance operational redundancy. The Company plans to fund this approximately $1.1 million investment from existing cash flow. Separately, Carbonxt provided an update on its Kentucky facility, noting that replacement of kiln parts and ongoing testing continue, with final parts expected on-site this week. A further update will follow the conclusion of this testing.
