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The global market for activated carbon will hit $21 billion by midway through next decade, according to market analysts.

Rising usage of water and air purification systems in the cement industry and coal fired plants is anticipated to drive the demand for powdered and granular forms of activated carbon, Research and Markets believes.

This will translate, it says, into a compound annual growth rate of nearly 18 percent until 2025 — which is great news for the ASX’s one and only activated carbon player, clean energy company Carbonxt (ASX:CG1).

Activated carbon is perhaps better known as activated charcoal, a form of carbon processed to have small pores that increase the surface area for absorption.

It is estimated that one gram of activated charcoal has a surface area of 3,000 square metres, which is the same as three Olympic swimming pools. It is produced from burning materials such as wood, coconut husk, coal, bamboo and peat.

It has been used in across a range of industries, from beauty to medical to food and beverage.

Carbonxt has been supplying the product for air purification at coal-fired power stations in the United States for a number of years and has expanded into the air purification market.

The company produced record revenue of $5.1 million in the March quarter. It expects to post impressive results for the 2019 financial year, with revenue for the first nine months up more than 200 per cent on the prior period.

 

This content is produced by Star Investing in commercial partnership with Carbonnxt.  This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.