Eden Energy secures second order for carbon nanomaterials technology

Monday, May 16, 2011

Eden Energy (ASX: EDE) has secured an order for its carbon nanomaterials for electronic paper, adding a second electrical application for the technology, and potentially opening another electrically focused market opportunity.

Hythane Company, the U.S. subsidiary of Eden Energy, has received its second commercial order for a modest quantity of multiwalled carbon nanotubes and carbon nanofibres (carbon nanomaterials), following its recent success selling its carbon nanomaterials for use in batteries.

This second commercial order for the conductive paper market adds to significant potential for the product as market research predicts substantial growth in the carbon nanomaterials market.

Carbon nanomaterials can greatly increase the conductivity of paper due to their very high level of electrical conductivity.

By adding carbon nanotubes or carbon nanofibers, commercially available paper can be made highly conductive, with sheet resistances being reported as low as 1 ohm per square.

Conductive paper substrates can also dramatically improve film adhesion, greatly simplify the coating process, and significantly lower cost as compared to plastic for similar applications.

Eden Energy said conductive paper is also an excellent lightweight current collector in lithium-ion batteries, creating a potential solution for high-performance energy storage devices.

According to Market Research News, “in 2010, the market for global carbon nanotubes was worth $1,603.9 million; an increase of 28.3% from 2009.

"The production capacity for multiwalled carbon nanotubes (MWCNT) is projected to reach 13,995.7 tons by 2016; with a CAGR (Compound Annual Growth Rate) of 30.6% from 2011 to 2016.

"The field emission displays, lithium-ion batteries, integrated circuits, and super conductors have high potential in global carbon nanotubes market.”

Future demand for MWCNT is expected to grow in double digits due to increasing demand driven by lithium-ion battery, automotive components, electronics and semiconductors, and other markets.

In 2010, Asia Pacific is estimated to account for 47.9% of the global carbon nanotube market. Asia Pacific has largest production capacity with 1,152.4 tons in 2010, is expected to reach 6,108.0 tons in 2016, at an estimated CAGR of 31.5% from 2011 to 2016.

The market for carbon nanotubes in Europe is expected to grow at a CAGR of 12.5% from 2011 to 2016.

Eden said carbon nanomaterials can also be used in either concrete or rubber, "both of which markets also look very promising, although likely to deliver lower prices for the carbon."

With Eden’s pyrolysis process projected to be possibly cheaper than most competitors, these additional markets may also be commercially viable, potentially opening up significant further demand.

On May 11 Eden announced it has a growing order book for Optiblend® fuel kits in India and the U.S.

The company is starting to build significant momentum as Optiblend conversion and use of Hythane fuel will cut both costs and emissions levels very substantially.

With a recent share placement of $0.55 million and a fully underwritten rights issue to raise a further $2.4 million, today's announcement adds to Eden Energy's significant operational and investment momentum.

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