Eden Energy expands into renewable biogas market

Eden Energy (ASX: EDE) is set to take advantage of the current move towards biogas, particularly in the U.S., with the company’s OptiBlend system being validated for commercial use with both hydrogen-rich renewable biogas and syngas fuel feedstocks.

OptiBlend, produced by Eden’s U.S. subsidiary Hythane Company, is a dual fuel system that displaces up to 70% of diesel with natural gas in diesel engines, offering major cost savings. This now looks to be expanded to engine-driven generator sets.

An OptiBlend kit has been purchased by a biogas equipment supplier for validation testing on their in-house generator set. Following successful performance testing and integration, the system will be included as the default generator set conversion kit for these projects.

Early research looks promising, demonstrating the ability to replace diesel with hydrogen-rich gaseous fuels, improving the efficiency and reducing emissions of diesel engines in distributed electrical power generation.

Promisingly, a number of projects in the U.S. propose to use biogas produced on site to displace up to 70% of high cost diesel fuel at electric power plants that use engine-driven generator sets.

In addition to the lower costs and emissions that stem from using the OptiBlend system, there will be additional savings from the reduced transport requirement to get fuel to site.

Because many small scale electric power generators operate in remote communities, diesel fuel used for small scale power generation generally needs to be shipped or air lifted in at high cost.

However, often these diesel-based power generators serve agricultural industries that provide sufficient waste material to produce renewable biogas. Timber mills, food processing plants and landfills are among the many potential sources of biogas.

Eden plans to expand OptiBlend sales to include renewable biogas from landfills, digesters and waste water treatment facilities, as well as syngas made from sawdust, wood chips or similar carbon-neutral agricultural waste in gasification equipment.

These biogas mixtures have similar compositions to the natural gas, syngas and hydrogen feedstocks used in developing OptiBlend.

Large scale sales of OptiBlend could see Eden become cash flow positive within 18 months, a significant target for the company.

Concrete strengthening technology

In addition to OptiBlend, Eden produces carbon nano-products that can be used in reinforcement applications for materials such as concrete, as well as in electrical applications due to its conductive properties.

The company had a breakthrough earlier this week after subsidiary Hythane Company discovered a way to evenly disperse the products to allow for better reinforcement.

Testing of this new technique is underway, with the company targeting concrete as a potentially major sector for the product, due to its strengthening properties.

Other current and potential applications for the carbon nano-products are reinforcement of rubber, as well as conductive thermoplastics, paints and coatings and batteries.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22934/eden-energy-expands-into-renewable-biogas-market-22934.html