A new water certification awarded to Carbonxt (ASX:CG1) sees the company expand beyond its initial market of air purification that removes mercury emissions from coal-fired power stations.
The certification is awarded by the public health and safety organisation, National Sanitation Foundation International (NSF), which is an accredited, independent third-party certification body that tests and certifies products to verify they meet public health and safety standards.
The certification recognises the high public health and safety standards met by Carbonxt’s activated carbon products.
Carbonxt’s Black Birch manufacturing facility in Georgia, the United States, has been certified by NSF. The facility has been manufacturing activated carbon (AC) products for sale into coal-fired power stations in the US for the removal of mercury.
Carbonxt already boasts a number of clients in the municipal potable water sector, and the NSF certification advances its ability to sell its products in the market, where many suppliers demand certification from NSF.
Furthermore, the certification by an independent third party provides additional credibility and recognition of Carbonxt’s products.
With water pollution an issue that is increasing globally, more water purification solutions are needed to address the problem. Carbonxt is now expanding its services into the potable water market after identifying this gap in the market.
Carbonxt Managing Director Warren Murphy said: “Industrial markets are seeking alternative solutions and products to reduce pollutants. Our activated carbon products are beginning to gain a lot of traction among these customers due to the fact that we do not use bromine.”
Global regulators are targeting a reduction in the use of the chemical bromine, which can be just as harmful to humans and animals as the pollutants it is helping to remove.
“The key competitive advantage of our products is the absence of bromine, and we continue to leverage this selling point to set us apart from competitors,” Mr Murphy said.
By receiving the NSF certification and diversifying into the water sector, Carbonxt has also significantly expanded its target market opportunity. According to the company, the potable water market is estimated to be worth US$155m in North America alone by 2020, and more than US$540m globally.
When Carbonxt listed on the ASX in January 2018, it stated in its prospectus that it would target new markets beyond the industrial air purification sector.
This certification, and new customers secured in the municipal potable water market, are evidence not only of the wide range of applications of the product, but also the company’s ability to execute on its growth initiatives.
This content is produced by Star Investing in commercial partnership with Carbonxt. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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