Highlights:

Environmental Clean Technologies Limited (ASX: ECT) (“ECT” or “Company”) is pleased to announce the signing of a binding Joint Venture Agreement (JVA) with GrapheneX. This agreement supports the rollout of Phase 2 of ECT’s Bacchus Marsh COLDry project (the Project) to deliver a world-first demonstration of the Company’s proposed commercial-scale net-zero hydrogen and electricity production. To support the rollout of Phase 2, ECT is also pleased to announce that it has received firm commitments from sophisticated investors to raise $5m under a placement which was joint led by Kaai Capital and Peak Asset Management.

Set to become the largest demonstration of its type in Australia

The JVA upgrades will enable the first-of-a-kind demonstration of low emission electricity production from syngas and the generation of hydrogen derivative products from lignite and waste biomass blends, making it the largest demonstration of its kind in Australia.

“Based on ECT’s internal engineering modelling, the upgraded Bacchus Marsh plant would have the capacity to produce up to 1000 tpa of Hydrogen that can be used for derivatives like formic acid and dimethyl ether (DME).”

Ashley Moore, Chief Group Engineer, ECT

GrapheneX will commit to supplying a multi-feedstock 39MW turbine to be installed at ECT’s Bacchus Marsh site. GrapheneX will also supply funding of $3.5m for installation of the turbine and the formic acid process equipment. The formic acid plant will demonstrate the production of formic acid (HCOOH) from the syngas product stream. Formic acid is a liquid organic hydrogen carrier that provides a safer, lower-cost hydrogen transport alternative[1] to ammonia or cryogenic hydrogen. In addition, it is also a product in its own right, used as a livestock feed preservative, amongst other applications.

ECT will commit $3.5m to the JVA, from which the company will fund the installation of the pyrolysis kiln and ancillary plant to produce char and syngas from COLDry pellets made from a blend of biomass and lignite.

ECT Managing Director, Glenn Fozard commented:

“Once installed, the process will be the largest hydrogen production capability from lignite. Add to that the largest demonstration of low emission electricity from lignite syngas, and we have a site of national significance. ECT shareholders and GrapheneX should be proud of this proposed development and the facility’s national profile will support increased interest from both industry and Government.”

The Project, similar to the HESC[2] project, aims to be a fully integrated supply chain solution for hydrogen. However, the key difference for ECT’s project is that, instead of focusing on high purity hydrogen, it will focus on hydrogen derivatives, which solve the immediate storage and transportation challenges. In addition, the Project does not require the CCS infrastructure that is being planned to curtail emissions for Blue Hydrogen projects. By eliminating two of the biggest challenges facing the immediate deployment of hydrogen production plants, the Project allows ECT and GrapheneX to focus on technical scale-up, commercial optimisations and further emissions and waste improvements.

Phase 2 of COLDry Demonstration Project to Commence

Phase 2 of the Project was placed on hold in October 2021 as part of the Company’s strategic review to allow a re-focus on formalising relationships with potential project partners, with the view to accelerate commercialisation and diversify project risk and funding.

The rollout of Phase 2 will establish R&D capability to support the development of:

The Company’s recently released corporate presentation highlighted the revised Phase 2 development plan, outlining the objective of demonstrating a net zero-emission hydrogen and agricultural char process, including:

Phase 1 of the Project, focusing on the scale-up of the Company’s world-first zero-emission COLDry lignite drying process, commenced commissioning in March.

Paving the way for ECT’s headline Net Zero Emission Hydrogen (NZEH2) Refinery project in Latrobe Valley

The commitment to Phase 2 of the Bacchus Marsh COLDry project also marks the next major step for the Company’s previously announced headline NZEH2 Refinery Hub project planned for deployment adjacent to the Yallourn mine and power station complex in Victoria’s Latrobe Valley.

Managing Director, Glenn Fozard commented:

“We are excited to continue developing our demonstration project at Bacchus Marsh in joint venture with GrapheneX. The addition of a turbine on-site, along with funding to build the pyrolysis kiln and formic acid process, will elevate the profile of our Hydrogen Hub at Bacchus Marsh and provide a working demonstration of technology that is proven, ready for deployment and most importantly, demonstrably net zero emission.”

Chairman of GrapheneX, Stephen Wee, commented:

“By providing the use of the turbine at the Bacchus Marsh site, GrapheneX is pleased to support the establishment of Australia’s largest demonstration of low-emission syngas as a feedstock for electricity. We see this as clear evidence that the partnership of ECT and GrapheneX is leading the charge towards implementing Victoria’s net-zero hydrogen refinery project in the Latrobe Valley.”

Introducing “Viridian Hydrogen”

With a rapidly emerging hydrogen space and a range of production methods competing for market share, colour codes have been loosely adopted to identify the production source and, by extension, the emissions profile.

The process being developed by ECT and GrapheneX is in a colour category of its own due primarily to its net-zero emission profile without the need for CCS (see table below).

The critical point of difference is the effective transformation of lignite, combined with waste biomass, into a valuable multiproduct stream:

  1. Clean energy – hydrogen and low emission electricity
  2. Soil health – agricultural char
  3. Critical minerals – graphitic carbon, battery anodic carbon & graphene

This outcome is achieved with net-zero emissions and zero waste discharge, delivering a transformative solution that allows for billions of dollars of improved economic value to be derived from Victoria’s lignite resource, aligned to emerging clean and circular industries and environmental sustainability.

Bacchus Marsh site to be developed into integrated Waste-to-Clean Energy Hub

ECT has commenced planning for the long-term use of its Bacchus Marsh site to become a fully integrated waste-to-clean energy hub.

The aim is to collaborate with both current and new partners to showcase a commercial application of many different low emission processes for turning waste into valuable energy products with a low to net-zero emission profile.

This will see further collaboration with industry partners over the coming weeks and months to identify leading-edge technology, recycling and refinery solutions for:

All technologies will be selected for their impact targeting:

ECT is currently in discussions with multiple parties, some advanced and some emerging, for technology acquisitions, collaborative integration of plant and equipment and strategic joint ventures in support of this initiative.

Joint Venture Key Terms

  1. Completion of the COLDry plant to produce feedstock for the pyrolysis kiln

ECT is responsible for the completion of the COLDry plant:

GrapheneX will be responsible for:

ECT is responsible for:

GrapheneX will be responsible for:

ECT is responsible for:

ECT will have no claim over any IP generated from the FA process or turbine demonstration and GrapheneX will have no claim over any IP generated from the COLDry-pyrolysis kiln demonstration or the char and syngas generation.

About GrapheneX

GrapheneX is an Australian pioneer in developing innovative manufacturing processes and material technologies capable of powering the fourth industrial revolution. The company is focused on developing technically feasible and commercially viable manufacturing processes for smart materials and digital platforms to enable Industry 4.0. GrapheneX Pty Ltd is also a founding industry partner of the Clayton Hydrogen cluster and plays a key role to test, trial and demonstrate new and emerging hydrogen technologies.

Placement Details

The Company is pleased to advise that it has received firm commitments to raise gross proceeds of $5m via a share placement to institutional and sophisticated investors. The share placement was strongly supported and will see several new institutional shareholders join the Company’s register.

The share placement will comprise the issue of 166,666,667 new fully paid ordinary shares (“Placement Shares”) at an issue price of $0.03 per share (“Placement”). Completion of the Placement is expected to occur on or around 3 May 2022. In addition to the Placement, for every 3 shares issued under the Placement, the Company will issue 2 free attaching listed options with the same terms as the Company’s existing listed option on issue (each exercisable at $0.03 expiring 23 February 2023 with ASX code ECTOE (‘’Placement Options’’). The first attaching Placement Option will be issued pursuant to the Company’s 15% capacity under Listing Rule 7.1 and at the same time as the Placement Shares. The second Placement Option is subject to shareholder approval to be sought at a general meeting of the Company proposed to be held in June 2022 (Meeting).

166,666,667 of the Placement Shares shall be issued pursuant to the Company’s 15% capacity under Listing Rule 7.1.

The issue price represents a 9% discount to the last traded share price of 0.033 cents, 9% discount to the 5-day volume-weighted average share price, and 10% discount to the 30-day volume-weighted average share price.

Kaai Capital Pty Limited (‘’Kaai’’) and Peak Asset Management (‘’Peak’’) have been separately appointed to act as Joint Lead Manager for the Placement (JLM's). In consideration for lead managing the Placement, the Company will pay the JLMs a fee of 6% of the amount raised and issue to them (or their nominees) a total of 10.2M ECTOE options. Funds raised under the Share Placement will be applied as follows:

This announcement is authorised for release to the ASX by the Board of ECT.

For further information, please contact:


[1] Formic acid is liquid at ambient temperature and pressure, unlike other proposed methods which require low / extremely low temperature and high pressure, and specialised transport vessels.

[2] HESC refers to the Hydrogen Energy Supply Chain pilot project which aims to safely demonstrate the production and transport of clean liquid hydrogen from Victoria’s Latrobe Valley to Japan. 

Environmental Clean Technologies Limited (ASX: ECT) (“ECT” or “Company”) is pleased to provide the following update on the status of its R&D Loan facility provided by InvestVictoria, a business of the Victorian State Government.

Key points:

InvestVictoria R&D Loan

In line with previous announcements, the Company is pleased to announce it has received its second draw of $788,000 from the $1,968,000 R&D loan facility with InvestVictoria, for FY22.

This loan facility allows the forward factoring of accrued R&D Tax Incentive refunds, providing flexibility to the capital management plan by delivering cashflow when required, rather than waiting until after the tax return is lodged each year.

About the InvestVictoria R&D Cash Flow Loan

The R&D Cash Flow Loans program provides low-interest loans of up to $4 million, for a period of between 12-28 months, to innovative Victorian SMEs that meet certain eligibility criteria including:

Managing Director Glenn Fozard noted:

“The InvestVictoria loan provided by the Victorian State Government continues to provide valuable non-dilutive cash flows for the business. Additionally, the savings of over $100,000 in interest expense is being re-directed into further R&D."

This announcement is authorised for release to the ASX by the Board.

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For further information, please contact:

Environmental Clean Technologies Limited (ASX: ECT) (“ECT” or “Company”) is pleased to provide the following update on the status of its FY21 R&D Tax incentive refund and the establishment of a new R&D Loan facility provided by InvestVictoria, a business of the Victorian State Government.

Key points:

FY21 R&D Tax Incentive Refund

The FY21 tax incentive refund of $1.988M delivers a net cashflow of ~$670k to the Company following the repayment of the R&D loan balance (plus accrued interest, as disclosed in the 2021 Annual Financial Report). These funds will contribute to financing the Company’s strategic initiatives, including the commercial demonstration of its Coldry technology and the preparation of a full feasibility study for the proposed Net Zero Emission Hydrogen Refinery Hub Project in Victoria’s Latrobe Valley, announced recently.

New R&D Loan Facility

The Company is pleased to announce it has established a new $1.968M R&D loan facility with InvestVictoria, for FY22.

ECT has previously utilised finance facilities that have allowed the forward factoring of accrued R&D Tax Incentive refunds, providing flexibility to the capital management plan by delivering cashflow when required, rather than waiting until after the tax return is lodged each year.

About the InvestVictoria R&D Cash Flow Loan

The R&D Cash Flow Loans program provides low-interest loans of up to $4 million, for a period of between 12-28 months, to innovative Victorian SMEs that meet certain eligibility criteria including:

This new low interest loan program offered by InvestVictoria has now closed for further applications.

The key terms of the facility are provided in the following table.

Key Terms

Offer date 19 November 2021
Maximum Loan Amount  $1,968,000  
Maturity Date   31 October 2023 
Maximum first draw  $1,180,000  
First draw date  10 business days from date of signing  
Maximum second draw  $788,000  
Second Draw date  Between 1 January and 28 February 2022  
Forecast FY22 R&D Refund  $2,460,560  
Loan to Value Ratio (LVR)80%  
Interest Rate  Treasury Corporation of Victoria - [TCV] 11AM AEST Rate, currently 0.265% p.a. 

Managing Director Glenn Fozard noted:

“This new loan provided by the Victorian State Government evidences our increasing involvement in Victoria’s economic growth via technology expansion, with the savings of over $100,000 in interest expense being able to be directed into further R&D.

"The combined value of R&D rebate surplus and new R&D loan facility delivers approximately $2.6m of cashflow for the current financial year and gives the Company greater depth in financial resources ahead of completion of our Bacchus Marsh project and the continued progress on the Latrobe Valley Hydrogen program."

This announcement is authorised for release to the ASX by the Board.

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For further information, please contact: