Benzinga | Nov 10, 2021 08:34AM EST

CN Energy Says Expands Into Multi-Billion Dollar Water Purification Market

CN Energy Group. Inc. (the "Company"), a China-based manufacturer and supplier of wood-based activated carbon and a producer of biomass electricity, today announced plans to expand into the multi-billion dollar water purification market. The global water purification market is projected to grow from $29.12 billion in 2021 to $47.53 billion in 2028 at a CAGR of 7.2% in the forecast period, 2021 to 2028. (Source: Fortune Business Insights)

As part of the Company's business strategy, it has established a new subsidiary to focus on this new market opportunity in order to participate in this expanding market. The new subsidiary, Zhejiang CN Energy New Material Co., Ltd. ("Zhejiang CN Energy"), is located in the Economic and Technological Development Zone of Lishui City, Zhejiang Province. Construction is underway on facilities for manufacturing, R&D, sales and marketing, and corporate operations.

Zhejiang CN Energy's new facilities are expected to feature a state-of-the-art inspection and quality control laboratory, and a high-efficiency charcoal separation processing production line, with a targeted annual output capacity of 36,000 tons of high-precision fine wading activated carbon.

Mr. Kangbin Zheng, the Company's Chairman and CEO, noted, "This endeavor is expected to be a major expansion of our market, which will create significant new revenue and profit opportunities. The water purification market is a sustainable one, with international demand and healthy growth expected over a multi-year period. Shortages of clean water and demand for filtration products have surged with the global pandemic, and have resulted in investments in environmentally friendly businesses and innovations, such as smart water purifiers."

Mr. Zheng continued, "By controlling our own water wading license, production and quality control, we plan to have a rare, fully integrated business, able to ramp production faster and ensure that high volumes of purified water required by customers serving the industrial, residential, domestic and international markets are available. Longer-term initiatives we are also actively investigating involve other complementary business opportunities in the downstream sectors of the activated carbon industry, which may further expand our competitive advantage, as well as build value for shareholders."

Water purification activated carbon is generally columnar particles, with a large microporous surface area, giving them high mechanical strength, fast absorption speed, a high purification level and a longer product life. In addition to water purification, activated carbon is widely used in the chemical, electronic, medicinal, printing and dyeing, and food industries, which require reliable filtration, adsorption, purification, and the removal of impurities, including odors, chlorine, cyanide and a variety of heavy metal ions and other harmful substances.