Phoslock licence agreement signed with The Orion Companies and 100 tonne order received
Phoslock Environmental Technologies (ASX: PET) has signed a licence agreement with The Orion Companies (TOC) that allows TOC to use the Phoslock™ trademark for marketing and sale of some of its new products within the USA.
The company also received new purchase orders from TOC of approximately 100 tonnes of Phoslock for immediate delivery under the existing distribution agreement. The licence adds a new royalty stream alongside existing US sales, while the order adds fresh volume.
The three headline items from the 28 October 2026 update are:
- A trademark licence agreement with TOC covering some of its new products in the USA
- A 10% royalty to PET on any gross profit TOC achieves on sale of those products
- New TOC purchase orders of approximately 100 tonnes of Phoslock
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How the licence agreement works
Key terms
The agreement anticipates TOC purchasing Phoslock™ product to blend with other ingredients and repackage the blended product for sale in the USA. These purchases would be in addition to those required by the existing distribution agreement with Orion in the US.
PET will receive a 10% royalty of any gross profit achieved by TOC upon sale of these products. The royalty income is not expected to be material initially, but it could be a useful addition to PET’s existing US business.
TOC has launched its marketing campaign with a post on social media.
| Term | Detail | Investor relevance |
|---|---|---|
| Trademark licence | TOC may use the Phoslock™ trademark for marketing and sale of some of its new products within the USA | Extends the Phoslock™ brand into new US products |
| Blending and repackaging | The agreement anticipates TOC purchasing Phoslock™ product to blend with other ingredients and repackage for sale in the USA | Purchases would be in addition to those required by the existing distribution agreement |
| Royalty | **10%** of any gross profit achieved by TOC on sale of these products | Not expected to be material initially, but could be a useful addition to the existing US business |
| Marketing | TOC has launched its marketing campaign with a post on social media | Commercial activity under the licence has begun |
Existing distribution agreement and order momentum
The order of approximately 100 tonnes would take year-to-date (YTD) sales to TOC to 158 tonnes.
The existing US distribution agreement expires in December 2026, and work is progressing on an extension for a further 2 years.
What is lanthanum modified bentonite and why does it matter?
Phoslock® is PET’s main manufactured product. It is a lanthanum modified bentonite (LMB) that permanently binds excess phosphorus in the water column and sediments, and thus prevents the formation of cyanobacteria.
Phoslock is certified for use in drinking water in North America, Europe, Brazil, Australia and China. PET specialises in water treatment products to remediate polluted lakes, rivers, canals and drinking water reservoirs.
New product development continues
The products to be sold in the US under the licence agreement are in addition to the new P-binding products with increased levels of lanthanum being developed by PET for the global market. PET made an ASX announcement on these products on 7 September.
The higher-lanthanum products in development are reported to deliver approximately four times the binding capacity of existing Phoslock in pilot-scale testing, which PET believes could support premium pricing against only modestly higher manufacturing costs.
Development steps outlined in the update include:
- Work has commenced on further batch production of Phoslock 10 and Phoslock 20 through the commercial manufacturing plant
- Work has commenced on bulk testing in suitable ponds
- Last week, a 700kg application of Phoslock 10 was made on a pond in China, with results being closely monitored
- Pond applications are proposed in other jurisdictions but are not yet finalised
What happens next for PET and Orion
The update points to the following forward items:
- Distribution agreement extension: PET and Orion are working on an extension of the existing US distribution agreement for a further 2 years. The current agreement expires in December 2026.
- China pond results: Results from the 700kg Phoslock 10 pond application in China are being closely monitored.
- Batch production and bulk testing: Work has commenced on further batch production of Phoslock 10 and Phoslock 20 and on bulk testing in suitable ponds.
- Other jurisdictions: Pond applications are proposed but not yet finalised.
The announcement was approved by Chairman Mr Fred Bart.
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