Green360 Technologies (ASX:GT3) is a building materials company. It is already a producer of kaolin but is also developing low-carbon and low-cost concrete technology.

Already making money

The company owns Australia’s only wet processing Kaolin Operation (Pittong in Victoria) where it is already generating revenue (>$25m over FY24 & FY25) from by selling several products derived from kaolin to various customers including in the industrial, pharmaceuticals and agriculture sectors. Green360 has also planted its flag in the ground in Western Australia, it has the Gabbin project with 72.5Mt of kaolinised granite, 215km northeast of Perth.

Potential to reduce emissions in the concrete production process

GT3 hopes to use its expertise to expand into low carbon concrete with low-carbon precast products and Eco-Clay. Eco-Clay is GT3’s unique calcined kaolin product that can be used to produce low-carbon concrete. Concrete production accounts for 8% of global emissions, most of which is generated during the heating of powder in a kiln but Eco-Clay & GT3’s other solutions require less heat and are generated from industrial waste. With the Australian government setting annual limits on industrial emissions and the disruption of local cement supply chains, there is an opportunity for Green360 to make a difference by offering a lower-emitting and cost-effective alternative.

Valuation of $0.10-$0.13 per share

We value GT3 at $0.10 per share in a base case and $0.13 per share in an optimistic (or bull) case, assuming continued growth in its existing business lines and successful steps towards commercialisation of Eco-Clay including offtake deals and locking in toll-treatment agreements at Pittong. Please see p.22 for further details on our valuation and p.24 for the key risks.