Zeotech Moves Closer to Commercialising Low-Carbon Concrete at Industrial Scale
AusPozzâ„¢ advances toward a DFS and first cash flows as industry partnerships accelerate
Zeotech Ltd (ASX: ZEO) has delivered a defining year of progress as it advances its AusPozz™ Project — a high-reactivity metakaolin product designed to replace up to 50% of cement in concrete. AusPozz™ offers a rare combination of improved strength, enhanced durability, lower additives, and materially reduced embodied carbon. With cement responsible for around 8% of global emissions, the potential market opportunity for scalable low-carbon concrete solutions is significant.
During 2025, Zeotech successfully transitioned AusPozz™ from concept to commercial validation. A June 2025 Preliminary Feasibility Study outlined a potential 20-year project with an estimated $406m NPV, 42% IRR and a 2.1-year payback period. The company also completed Australia’s largest commercial-scale trial using high-reactivity metakaolin and secured a landmark $200m direct shipping ore (DSO) kaolin offtake agreement with MSI China, establishing a clear pathway to early cash flows. At the same time, Zeotech deepened industry engagement through MOUs with Holcim Australia, Cement Australia and Laing O’Rourke, plus a LOI with distribution group Bisley.
Independent testing has shown AusPozzâ„¢ can deliver over 50% increases in compressive strength while materially reducing shrinkage, even with substantial cement substitution. A separate Life Cycle Analysis demonstrated a 79% reduction in embodied carbon versus traditional cement binders. At full nameplate production, AusPozzâ„¢ could enable the annual avoidance of nearly 230,000 tonnes of COâ‚‚, highlighting both the environmental and commercial appeal of the product.
Looking ahead, 2026 shapes as a key inflection year. Zeotech plans to commence DSO mining operations, complete a Definitive Feasibility Study (DFS), progress toward a Final Investment Decision (FID), and begin generating early revenues from kaolin shipments to MSI. Pitt Street Research continues to value Zeotech at $0.27–$0.38 per share, implying substantial upside from current levels as the project de-risks and transitions from development into execution.
As with all emerging industrial developers, Zeotech faces funding, regulatory, pricing and execution risks. However, with a validated product, binding offtake in place, and growing engagement from major construction and materials groups, the company is entering a critical phase of commercialisation.
For the full valuation model, DFS outlook, commercial roadmap and detailed risks, download the complete Zeotech research report.
