Suvo Strategic Minerals Ltd (ASX:SUV) has advanced its partnership with Polvine Pty Ltd (PERMAcast) to a non-binding term sheet, designed to facilitate a joint development agreement and establish an incorporated joint venture entity.
PERMAcast is Western Australia’s leading supplier of precast and prestressed concrete products for the state’s major infrastructure, oil & gas and mining projects.
Under the joint development agreement (JDA), the two companies intend to deliver low-carbon geopolymer concrete products and projects and otherwise commercialise the intellectual property created under the JDA.
Agreement to be finalised next month
“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,” Suvo Strategic Minerals executive chair Aaron Banks said.
“Being able to leverage PERMAcast’s manufacturing expertise, market access and balance sheet likely saves us two to three years in our commercialisation strategy.
“Both companies have already identified a number of suitable products to commence manufacturing.
“We hope to conclude the final stages of this agreement next month and commence production shortly thereafter.
"We thank Darren, Alberto and the team at PERMAcast and look forward to establishing a mutually beneficial working relationship.”
Under the term sheet, the two companies will work toward a binding JDA within 30 days – Suvo and Permacast will each hold 50% of shares issued by the joint venture entity, with Permacast providing the capital required to fund it.
Facilitating sustainable construction
“We are thrilled to collaborate with Suvo Strategic Minerals on this innovative venture to develop and commercialise low-carbon geopolymer concrete products,” PERMAcast CEO Darren Hedley said.
“This partnership represents a significant step towards sustainable construction solutions, addressing the urgent need to reduce carbon emissions in our industry.
“By combining Suvo’s advanced research with Permacast’s manufacturing expertise and market access, we are positioned to bring high-performance, eco-friendly concrete products to the market more rapidly.
“Our commitment to reducing the carbon footprint of construction materials is firm, and this collaboration is a significant stride in that direction.
“The development of geopolymer concrete products not only aligns with our sustainability goals but also presents a unique opportunity for us to lead the market in low-carbon building materials.
“We are confident that our joint efforts will yield innovative solutions that benefit both the environment and the construction industry.”
Allows commercialisation
Suvo says the JDA will allow commercialisation of its geopolymer concrete products to be fast-tracked as PERMAcast offers a clear avenue for scale-up and industry validation given both the scale and expertise of the company.
Creating traditional Ordinary Portland Cement (OPC), the binder for concrete, is the single largest industrial source of greenhouse gas and carbon emissions, accounting for 8% of global emissions, the same output as the combined emissions of every car on the globe.
The global concrete market size is also projected to reach US$972 billion by 2030, with a compounding annual growth rate of 4.7%.