Tampa, Florida-based MagneGas (NASDAQ:MNGA), a company that has invented a patented process to convert liquid waste into a hydrogen-based fuel, said that one of the largest family-owned wineries in the world has chosen its MagneGas2 fuel for a large demolition project in California.
Shares surged nearly 16 percent to 98 cents in New York on Thursday, stretching year-to-date gains to over 47 percent.
Two Rivers Demolition selected MagneGas for the winery project, which is the largest single order of MagneGas fuel in the company's history, with a minimum of 1,300 cylinders required to complete the job.
MagneGas said its distributor, California-based TriCo Welding Supplies, will be providing oxygen and hard goods for the project and will be sourcing the fuel through Placer Power, MagneGas's partner for the California, Nevada and Oregon regions.
MagneGas is certainly making headway in its plan to expand the sales of its promising hydrogen-based fuel, which is looking to make waves in the industry as a greener natural gas alternative that has lower emissions than any fossil fuel currently on the market.
Its process to convert liquid waste into its hydrogen-based fuel involves the flow of carbon-rich liquid feedstock through a 10,000 degree Fahrenheit electric arc between two carbon electrodes. The process sterilizes the liquid waste, which can include anything from manure or sludge to medical waste, and produces the hydrogen-based fuel, which also contains carbon and trace gases.
Its target market is the $5 billion metal cutting industry, where MagneGas is seeking to replace acetylene, claiming its home-grown, US patented hydrogen-based gas is cheaper, uses 34 percent less oxygen and also cuts 38 percent faster. The fuel also dissipates into the air unlike acetylene, which pools on the ground and creates a major risk for an explosion.
"We have been in the demolition business since 1996 and have never seen a fuel that cuts as quickly as MagneGas2®," said VP of industrial plant services at Two Rivers Demolition, Tony GraunStadt.
"The fact that it is made in the U.S.A. from a renewable waste source adds to the benefits of this product. Our whole team is looking forward to the productivity increase that we expect to see as a result," he added.
Just last week, MagneGas announced that one of the five largest electric utilities in the U.S. approved its special fuel to replace acetylene at the new customer's power and repair facilities. The company continues to implement its three-pronged strategy aimed at bringing MagneGas to exit 2015 at a break-even run rate.
This includes industrial gas sales for the metal working market, equipment sales for liquid waste processing and the use ofMagneGas for the co-combustion of hydro-carbon fuels to reduce emissions. Last month, it completed the initial testing of itsMagneGas system at a major hog farm in Indiana, proving that its patented system can fully sterilize manures.