Suvo Strategic Minerals has inked an agreement with Polvine Pty Ltd (PERMAcast) focused on producing low-carbon geopolymer concrete (GPC) products.
The collaboration will see the establishment of an incorporated joint venture entity (SPV Entity) with both companies holding equal shares, Suvo said in an ASX announcement.
Together with Suvo, PERMAcast aims to commercialise GPC products, an innovation expected to reduce carbon emissions in the construction industry.
“This is a fantastic result for Suvo. Forming a new company with PERMAcast to deliver waste-derived geopolymer concrete products to market is both a privilege and a unique opportunity that cannot be overstated,” said Aaron Banks, executive chairman of Suvo.
According to Suvo, the partnership leverages PERMAcast’s manufacturing abilities and market reach, providing a swift path to market for Suvo’s innovations.
“Being able to leverage PERMAcast’ s manufacturing expertise, market access and balance sheet likely saves us two to three years in our commercialisation strategy,” added Banks.
The urgency of this initiative is underscored by the projected growth of the global concrete market, expected to reach USD 972 billion by 2030.
Ordinary Portland Cement (OPC), the conventional binder used in concrete, is the largest industrial source of greenhouse gases, contributing 8 per cent of global emissions.
“This partnership represents a significant step towards sustainable construction solutions, addressing the urgent need to reduce carbon emissions in our industry,” stated Darren Hedley, CEO of PERMAcast.
The non-binding term sheet outlines several key deliverables essential for the finalization of the JDA, including the preparation and testing of various GPC formulations to meet different strength requirements, and the assessment of their applications.
The agreement stipulates that PERMAcast will provide the capital required for the SPV Entity, ensuring the project’s financial backbone is robust.
Both companies have committed to using their best efforts to finalize a binding JDA within 30 days.
