The zeolite methane reduction opportunity is still very much in play — it’s just taking a backseat for now to the metakaolin/AusPozz opportunity, which is closer to generating near-term cashflow.
The company now refers to the metakaolin and cement/building industry focus as their “Horizon 1 strategy”, and the zeolite methane reduction (think landfill trials and partnerships like Cleanaway) as “Horizon 2”.
Many of us (including me) originally invested in ZEO because of the zeolite potential, and that’s still progressing. I personally think of this more now of an R&D “gravy on top” play, now we have the Auspozz opportunity which should spit out cash after the upcoming PFS and commercial deal finalisation!
James Marsh mentioned today in a podcast “…they’re now scaling zeolite production at the Brisbane pilot plant in preparation for full-scale field trials. They’re currently talking to 3 major potential partners (assuming Cleanaway will be one of them), and once one is locked in, Horizon 2 will accelerate.
The sequencing is makes sense: get cash flowing from the high-demand metakaolin sales first, stabilise operations, have metakaolin available to ramp up the zeolite side aggressively.
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