Sprintex expands into future facing, multi-billion dollar clean energy space
Sprintex’s launch of the S15, S18 and S26 e-compressors takes the company into the lucrative market of clean energy including hydrogen fuel cells and wastewater treatment.
Compressor specialist Sprintex (ASX: SIX) is making its move into the multi-billion dollar, future facing clean energy market, unveiling several new high-speed e-compressors at the World Hydrogen Expo held at Messe Bremen in Germany.
The expo is the largest of its kind in this rapidly growing segment, and offered Sprintex opportunities to interact with key potential buyers.
Sprintex CEO Jay Upton attended the event and was pleased at the amount of interest the company generated.
“I was almost shocked to find that there was virtually a line to the door of well qualified OEM manufacturers wanting to talk to us,” Upton told Stockhead.
Sprintex was able to generate active inquiries and sign NDAs with several large companies, which include sending prototypes to some leading European vehicle makers.
“Obviously, we can’t go into much detail but what this tells me is that what we have is particularly relevant at this moment,” Upton said.
Sprintex’s new S15, S18 and S26 e-compressors were designed to meet the huge demand in hydrogen fuel cells as well as in industrial applications.
Primarily, the main difference Sprintex provides in the new e-compressors is air which is 100% hydrocarbon free.
The units don’t have any lubricated bearings at all, meaning that there can never be any chance of contamination, which allows them to be used in sensitive industrial applications like water treatment and food processing.
The market for industrial clean air compressors is huge and is set to grow to USD 82 billion by 2026 – and the market opportunity for Sprintex as the space is currently dominated by less efficient technologies, which will soon become obsolete as a result of new regulations.
Sprintex is currently working with the largest wastewater treatment manufacturer in China, creating ways to make the water aeration more efficient.
“We’re able to do some clever things with our compressors. We’re developing a mechanism where the air produced can be better used to oxygenate the water, which means that it uses less energy,” Upton said.
Hydrogen in particular is a hot topic at the moment, with some saying that the gas is the new diesel.
Hydrogen fuel cells are expected to replace diesel engines in transportation, machinery, and power generation in the future.
“We understand that hydrogen fuel is still an emerging technology, so we can’t view it in the short term as a main source of income,” Upton explained.
“But at the same time, we feel it’s something that we must be at the forefront of, and that’s what we’re doing.”
There are currently only less than 15 companies worldwide competing in this space, led by Garrett, BorgWarner, Bosch, Liebherr.
Sprintex is disrupting this market by making its units more compact and lighter weight, which leads to overall efficiency.
“In colder countries like the US and Europe, electric forklift trucks with a hydrogen fuel cell are being used in large distribution centres, to enable keeping the trucks recharged while they run them virtually 24 hours with zero emissions,” said Upton.
It’s still more expensive to run on hydrogen fuel than fossil fuel right now, but when that equation tips over, Upton believes the demand for compressors like the ones Sprintex makes will grow exponentially.
The UK and Europe for example have mandated banning the manufacture of any vehicle powered by only an internal combustion engine by 2030, while in the US, California will ban conventional combustion engines in vehicles by 2035.
“Things are moving fast, and we’re now very close to the balance point where hydrogen will be commercially viable for mainstream use,” said Upton.
Upton believes that Sprintex offers a fantastic opportunity to investors who have an interest in ethical Investments and the green energy sector.
The company has put a lot of effort into developing this new green division, working with some of the world’s best engineers.
Its partnership with the global leader in compressors Aeristech for example has allowed it to leverage its expertise in turbomachinery and air bearing and introduced us to opportunities in the clean energy sector.
Both companies are confident that together they can accelerate the expansion of market coverage and the realisation of revenues in the burgeoning clean energy space.
Upton also believes the valuation of Sprintex will increase as a result of these opportunities.
“We’re at a very exciting time now in our company’s development. We have successfully done work for some of the world’s largest OEMs.
“And I do think that over a one-year period or so, we’re going to see a substantial improvement in our share price value,” Upton said.
This article was developed in collaboration with Sprintex, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.