Suvo Strategic Minerals and PERMAcast to Develop Low Carbon Concrete
SUV (SUV) Share Update July 2024 Monday 8th
Suvo Strategic Minerals Signs Joint Development Agreement with PERMAcast
Suvo Strategic Minerals Limited (ASX: SUV) has announced a significant partnership with PERMAcast to develop and commercialize low carbon geopolymer concrete products. This joint venture aims to bring innovative and sustainable concrete solutions to the market.
Instant Summary:
- Suvo and PERMAcast sign a binding Joint Development Agreement (JDA).
- The partnership will focus on delivering low carbon geopolymer concrete (GPC) products.
- First product: 1,000mm x 300mm x 300mm backing blocks for a major Government infrastructure project.
- PERMAcast to provide capital for the project, including testing various GPC formulations.
- The JV Entity will prepare, test, and commercialize GPC formulations with strengths ranging from 10 to 40 MPa.
Joint Development Agreement Details
Suvo Strategic Minerals Limited has executed a tripartite binding Joint Development Agreement (JDA) with its wholly owned subsidiary Climate Tech Cement Pty Ltd (CTC) and Polevine Pty Ltd (PERMAcast). The agreement aims to deliver low carbon geopolymer concrete (GPC) products to the market and commercialize the intellectual property (IP) created under the JDA through a joint venture entity (JV Entity).
The JV Entity will focus on preparing and testing a range of GPC formulations to meet concrete strength requirements of nominally 10, 20, 30, and 40 MPa, and determining the maximum strength attainable. The first product to be delivered under this agreement will be a series of 1,000mm x 300mm x 300mm backing blocks for a major Government infrastructure project, as requested by the Sustainability Waste Allowance (SWA).
Project Funding and Execution
PERMAcast will provide the necessary capital to fund the project, which includes testing various GPC formulations to meet the required concrete strength. The production of the GPC backing blocks will be done concurrently with the formation of the JV Entity. The GPC backing blocks are anticipated to be delivered to the project by the end of July 2024.
Any intellectual property created during the course of the JDA will be owned by the JV Entity, acknowledging the background intellectual property rights of Murdoch University licensed to Suvo. The JDA requires PERMAcast to provide the capital required to fund the project and any intellectual property created during the course of the JDA will be owned by the JV Entity.
Statements from Key Executives
Executive Chairman Aaron Banks commented: 'Collaborating with the industry leader, PERMAcast, to deliver waste-derived, low carbon geopolymer concrete products to market is a watershed moment for the Company. Our first step in commercialisation has been taken and now the exciting work begins.'
PERMAcast Chief Executive Officer Darren Hedley added: 'By signing the Joint Development Agreement, we are not only producing concrete but also incorporating innovation and sustainability. Our first project in this collaboration involves creating Geopolymer backing blocks. We are transitioning ideas from the lab to viable and scalable products in the market.'
This partnership is expected to have a positive impact on Suvo Strategic Minerals' stock as it aligns with the growing demand for sustainable and low carbon construction materials. The development of low carbon geopolymer concrete products could position Suvo as a leader in the green construction sector, potentially attracting more investors and increasing market confidence.
Investor Reaction:
Investors and analysts have responded positively to the announcement, highlighting the potential for Suvo to capitalize on the increasing demand for sustainable building materials. The partnership with PERMAcast is seen as a strategic move that could drive future growth and innovation.
Conclusion:
Investors should keep an eye on the progress of this joint venture and the development of low carbon geopolymer concrete products. The successful execution of this project could significantly enhance Suvo's market position and offer substantial returns. Stay informed and consider the long-term benefits of investing in companies focused on sustainability and innovation.