This week we begin a short series of reports on selected listed companies operating in the clean and green space, produced as a contribution by research and analyst company Kalkine. The series has been devised in recognition that in the absence of government mandates one of the fastest and most efficient ways to transition to a clean economy is through investments that promote a clean and healthy economy. However, as with any investment there needs to be a solid business case and a critical eye to underwrite success. The Fifth Estate makes no comment on this.

Greenearth Energy Ltd

Company Overview

Greenearth Energy Ltd (GER) is a diversified Australian based renewable energy company that is engaged in investment of energy efficiency technologies and other renewable energy research and development projects. One key focus market entails carbon dioxide-to-fuel conversion market. The company has interests in industrial energy efficiency, technology investment and associated investments. Other areas of operation include conventional geothermal resources.

Appointed as an Accredited Partner of independent energy expert Verdia

Greenearth Energy has confirmed that its Vivid Industrial and Ilum-a-Lite intelligent lighting business has been appointed as an accredited partner of independent energy expert, Verdia. Verdia manages Westpac’s energy efficient financing program that is supported by $200 million from the Clean Energy Finance Corporation. Vivid Industrial has also won the Frost & Sullivan Australia 2016 Growth Excellence in Smart Lighting Solutions Award.

Targeting Chinese Market

Greenearth Energy lately announced that NewCO2Fuels Ltd (NCF, formed with the support of GER that has about 33.33 per cent economic stake in NCF) has entered into terms with Sinopec Engineering (Group) Co Ltd (SEG) to commercialise NCF’s CO2-to-fuel technology for the Chinese market. In November 2016, the company reported that NCF has signed a term sheet with Blooming (Beijing) Technology Co. Ltd (BBT) to lead sales and marketing efforts of NCF award winning CO2-to-fuel technology in China. In a way, BBT will act as NCF’s agent in China to support NCF and SEG in their Cooperation Agreement for commercialisation efforts in China along with also introducing investors to NCF.

Market Potential (Source: Company Reports)

Stock related Information

Greenearth Energy recently reported that the number of unlisted options currently on issue is 47, 550,000 (as on 7 November 2016). We also note that the company stock fell over 23.1 per cent in the last three months (as of 1 December 2016) due to weakening sentiment given the rising expenses. The company reported for solid total revenue growth for Fiscal Year 2016, with sales up 251 per cent on the previous year. The company held its annual general meeting on 29 November 2016.

Eden Innovations Ltd (Eden Energy Ltd)

Company Overview

Eden Energy Ltd (EDE), a clean energy company, has recently changed the name to Eden Innovations Ltd as passed in its latest annual general meeting. Eden’s key operational areas include carbon nanotube and carbon fibre production, nanomaterial concrete admixtures and fuel systems. The company produces and sells a concrete admixture, EdenCrete, and retrofit dual fuel technology, OptiBlend, developed for diesel generator sets. The company’s subsidiary, EdenCrete Industries, Inc. has appointed Dag Grantham as senior vice president business development.

Expansion of Production Capability

The expansion of Eden Innovations’ Colorado based production capability of EdenCrete to a targeted maximum of 2 million – 2.4 million gallons per year is on schedule and is set to be operational later in first quarter of 2017. Georgia Department of Transportation (GDOT) has proposed to use EdenCrete in several state funded forthcoming highway slab replacement projects in Georgia. Further, the completion of the US presidential election with approval of two referenda held in Georgia for raising small taxes to fund road, bus and rail infrastructure seem to boost the future marketing of EdenCrete. The company has also completed the purchase of Denver premises for US$1.2 million payable over five years.

Capital Raising Efforts: Eden Innovations has placed A$15 million additional capital through Bell Potter. Further, the company expects the cash outflows for the December quarter to be $A 2100,000.

US Production Scale-up (Source: Company Reports)

Stock related Information

Eden Innovations had issued 33,333,333 fully paid ordinary shares to investors lately. The company’s US commercial trials have now started and more than 20 trials are underway or scheduled across USA during 2016 for many possible applications and trials. Earlier, US and Australian Concrete trials 2015-2016 had depicted 32 per cent increase in flexural strength for EdenCrete. But any negative results of the ongoing trials could hurt the stock sentiment. EDE stock otherwise surged 360 per cent this year to date (as of December 01, 2016).

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