Environmental Clear Applied sciences Restricted (ASX: ECT) (“ECT” or “the Firm”) is happy to offer the next replace on its three way partnership challenge with ESG Agriculture Pty Ltd (“ESG”).
Highlights:
- “Zero Quest” Joint Enterprise:
- Three way partnership established to develop sustainable soil well being options together with the commercialisation of ECT’s net-zero COLDry fertiliser product
- JV firm established: Zero Quest Pty Ltd (www.zero-quest.com.au)
- ESG and ECT to contribute seed funding of $150,000 every
- Discipline trials to start instantly
- Funding Milestones:
- ECT secured $482,488R&D Mortgage, together with contribution for JV seed funding
- ECT secured, topic to shareholder approval, $647,512in additional funding
- Mission Developments: COLDry Fertiliser course of design accomplished and examined; subject trials to comply with
- Mission Finance Progress: Focusing on completion in Q1 CY25
- Management Transition: Sam Rizzo transitions to Non-Government Director position for ECT and Zero Quest
Joint Enterprise with ESG
ECT and ESG have launched Zero Quest Pty Ltd, a three way partnership with workplaces in Melbourne and Adelaide, Australia, targeted on delivering revolutionary, zero-emission options for sustainable agriculture. As introduced on 4 April and 15 July 2024 ESG is an answer supplier of soil well being merchandise and advisory companies, supporting growers on their observe change journey in the direction of lowering their carbon footprint. ESG brings to the JV main agricultural executives with confirmed leads to participating with growers and creating agricultural options. The collaboration with ESG spearheads the COLDry Fertiliser Mission, a transformative initiative to cut back emissions and enhance agricultural effectivity.
Key milestones:
- Incorporation of Zero Quest Pty Ltd
- Seed Funding: The companions have contributed $300,000
- Discipline Trials Launch: Trials to start instantly for the COLDry Fertiliser Mission.
Zero Quest can be managed collectively by ECT and ESG, with Sam Rizzo (ECT) and Mark Scanlon (ESG) serving as basis administrators. Martin Hill, ECT’s CFO, will act as Firm Secretary.
Discipline Trials and Strategic Objectives
Zero Quest is ready to conduct subject trials with large-scale farmers throughout South Australia, Victoria, New South Wales, and the Philippines, evaluating numerous crop and soil sorts. The trials can be funded by the preliminary
$300,000 contributed by the JV companions and an extra $100,000 that every of the JV companions are obliged to contribute in early 2025. Any further capital elevating (whether or not fairness or debt) is to be contributed equally by the JV companions, until in any other case mutually agreed. Working for as much as six months, the trials will interact farmers underneath Memorandums of Understanding (MOUs), that are anticipated to transition into binding off- take agreements upon attaining the next targets.
Discipline Trial Aims:
1. Validate the fertiliser’s efficiency underneath real-world agricultural circumstances, specializing in crop yield and soil well being.
2. Environmental Influence Evaluation: Measure reductions in carbon depth and general environmental footprint in comparison with standard fertilisers.
3. Off-Take Agreements: Safe binding agreements with agricultural stakeholders primarily based on trial success, paving the best way for business manufacturing.
The Worth of COLDry Fertiliser
The product, ‘COLDry Fertiliser’, is a blended fertiliser designed to match or surpass the efficiency of conventional chemical urea fertilisers, providing farmers a aggressive and sustainable various.
The business proposition of COLDry Fertiliser to farmers is:
- Decrease price
- Similar or higher efficiency
- Compatibility with present spreading gear
- Decrease emissions
- Improved soil well being advantages
Sam Rizzo, Director of ECT and Zero Quest, commented:
“The institution and funding of Zero Quest, together with the launch of subject trails, mark the end result of many months of labor throughout the assorted phases of the Joint Enterprise between ECT and ESG. This milestone is a robust indicator of progress underneath our ‘race to income mannequin’ and now permits us to channel our focus in the direction of delivering the COLDry Fertiliser Mission.”
Mark Scanlon, Director of ESG and Zero Quest, commented:
“The launch of subject trials is a big milestone, showcasing the real-world advantages of our revolutionary fertiliser. Partnering with ECT underscores our dedication to sustainable practices, and we’re assured these trials will exhibit the transformative potential of this product for each farmers and the setting.”
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