‘Colossal’ potential: Eden’s concrete nanotube tech has global companies knocking on its door
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Super-strength concrete-maker Eden is making inroads into a number of international markets in 2019 – but it still needs to cement a profit.
Eden’s (ASX:EDE) EdenCrete carbon nanotube tech mixes quintillions of flexible, super-strong carbon nano-structures throughout concrete to make it denser, stronger, tougher and more durable.
In the last few days the company has announced numerous trial programs under way or planned over the next few months in various US States with “potentially large commercial customers”.
Eden says new links with Korean construction conglomerate, KC Industry, are progressing.
And it has also received interest from a large international company in Europe where “discussions are continuing”.
During the December quarter the company made total EdenCrete sales of $604,000, a big increase on the September quarter ($315,000), and a 92 per cent increase year-on-year.
It also said additional orders were on hand at the end of the quarter for a further $205,000.
So things are heading in the right direction, but the company still made a total loss of $1.66m for the quarter.
Eden chairman Greg Solomon says its taken over 14 years to get where it is today.
The company wants to be cashflow positive in 2020, but longer term the potential numbers are “colossal”.
“I would hate to put a number on it; they are silly numbers,” he told Stockhead.
“They talk in terms of a trillion-dollar industry for the concrete industry, and the US market is about 15 per cent of that.”
While Eden remains focused on the US market, international interest has really started to take off.
Mr Solomon says all these big companies came knocking at Eden’s door — not the other way around.
“In January 2018 we were approached by ParChem, which is a Dulux subsidiary,” he says.
“In September we appointed them as Australian and NZ distributors. They are starting their marketing program this week.”
Eden has fielded enquiries from many places. In October they had “a very serious enquiry” from a top 5 global construction company.
“We are still in serious discussions,” Mr Solomon says.
These enquiries are only preliminary, but they feel like a genuine validation of where the Eden tech stands on a global scale, Mr Solomon says.
“If we ever announce a deal off talks with one of these companies, I’m sure people will be rocked back on their heels when they see who they are,” he says.
“I had to ask ‘how did they find us?’ because their approach wasn’t one of ‘we think we can help you’; it was ‘we think that you can help us’.”
And it’s not just concrete; there are many other potential markets for Eden to tap into.
“Plastics, which is moving towards commercialisation,” Mr Solomon says.
“Batteries – the performance of cathodes in lithium-ion batteries are dramatically improved if you use carbon nanotubes instead of the graphite.
“There’s other applications in rubber and even steel.”
It’s the same with a lot of disruptive technologies, Mr Solomon says; they are slow to take off – but when they do, they really accelerate.