Environmental Clean Technologies Limited (ASX:ECT) (ECT or Company) is pleased to provide the following overview of its technology commercialisation and revenue model.

Key points:

- 10-year technology commercialisation pathway defined and evaluated

- Future market share and capacity targets established for key India, Australia and global projects

- Strategy for revenue diversification outlined

- ECT Revenue Model aligned with corporate business strategy, resource base and management structure

Background

ECT is a research and development company working to bring its technologies to market via a defined commercialisation pathway.

The Company is presently pre-commercial, relying on a combination of market-based capital raising and government funding via the Australian Government's R&D Tax Incentive program to fund its programs.

Having recently progressed its flagship India project closer toward financial close, and hence closer to commercialisation (assuming the R&D stage is successful), investors have sought guidance from the Company on its plans for commercial deployment.

The following report provides investors with:

- A general guide regarding the commercialisation pathway, including targets for the timing and scale of potential future projects

- A summary of target revenue streams that may be realised in part or whole, across the target projects.

Methodology

The Company has continued to develop and refine its commercial strategy for the generation of positive net returns. As part of this process, a framework was developed which maps a commercialisation pipeline (consisting of targeted capacity growth) and translates this to a medium-term (7 - 10 years) revenue model.

This model allows the business to measure the risk/return profile of each significant investment decision and, overall, estimate the future income the business can reasonably expect from the commercialisation of its technologies according to targets.

In the preparation of these models, the Company must make an assessment of a broad set of operational and financial variables, including but not limited to the anticipated success of research and development (R&D) programs, timeframes for project development implementation and future behaviour of commodity pricing. Concurrently, the Company must assess the risks that certain events or milestones may not transpire.

Regulatory and Commercial Constraints on Disclosures

There are a number of prevailing regulatory and compliance requirements placed on an ASX listed company which means it is not possible to make prospective financial forecasts at this time.

As is appropriate, ECT will continue to review and refine its revenue model, and where there is a reasonable basis on which to fix a value or volume at a point in time (indicated by such events as binding contracts), the Company may provide additional detail and clarity as to its future earnings opportunities.

In addition to the regulatory constraints around forward-looking statements, certain commercial information is not suitable for release. For example, the royalty rates associated with technology licensing, if disclosed, could prejudice future commercial negotiations with potential customers. This is not in the best interests of shareholders.

ECT Chairman Glenn Fozard commented, "We encourage investors to focus on our capacity targets. These targets are, we believe, achievable.

"For example, our targets around Matmor deployment in India, if achieved would represent around a 3% share of India's targeted 165 million tonne growth in steel capacity.

"The attached report covers the target timeframes for commercialisation of Coldry and Matmor, and indicative capital estimates and potential revenue streams."

As the Company advances its commercialisation program, announcements will be made when material agreements are established, allowing investors to track progress against the targets.

Future annual and half-year reporting will provide the financial information necessary for investors to draw their own conclusions on the value of the Company.

To view the Revenue Model, please visit:
http://abnnewswire.net/lnk/2DT3TDR7


About Environmental Clean Technologies Ltd

Environmental Clean Technologies Limited (ASX:ECT) is in the business of commercialising leading-edge coal and iron making technologies, which are capable of delivering financial and environmental benefits.

We are focused on advancing a portfolio of technologies, which have significant market potential globally.

ECT's business plan is to pragmatically commercialise these technologies and secure sustainable, profitable income streams through licencing and other commercial mechanisms.

  

Contact

Glenn Fozard
Chairman
Environmental Clean Technologies Ltd
E: info@ectltd.com.au
WWW: www.ectltd.com.au



Link: Technology Commercialisation Strategy & Revenue Model



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