MagneGas (NASDAQ:MNGA), which has a technology that converts liquid waste into hydrogen-based fuel, jumped over 10 percent today after news of a one year contract with a major southeast fire-rescue supplier to distribute its special fuel throughout the state of Florida.
Under the terms of the exclusive deal, Municipal Equipment Company will be the sole supplier of MagneGas and MagneTote for the fire-rescue market in Florida.
According to the company, there are an estimated 271 fire departments in the state.
MagneGas's 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.
The home-grown, US patented hydrogen-based gas is cheaper, uses 34 percent less oxygen and also dissipates into the air quickly in the event of a leak unlike acetylene, which pools on the ground and creates a major risk for an explosion. Features also include a smaller heat-affected zone, better stability and a lighter fuel composition.
"During our display at the Fire-Rescue East Trade Conference we received interest from equipment distributors from many areas of the country," said MagneGas chief executive officer, Ermanno Santilli.
"We found Municipal to be the perfect match since they are located in Florida and Georgia. Their headquarters in Orlando will allow easy distribution and regularly scheduled face to face meetings.
"As we continue to penetrate the Florida market we hope to expand with Municipal into Georgia in the near term," he added.
MagneGas is headquartered in Tampa, Florida, and continues to implement its three-pronged strategy which includes industrial gas sales for the metal working market, equipment sales for liquid waste processing and the use of MagneGas for the co-combustion of hydro-carbon fuels to reduce emissions.
"Having seen MagneTote at the Orlando show we felt that this would be a product that could give us a competitive edge," said Matt Fenneman of Municipal Equipment.
"I traveled to their company headquarters for a more hands on demonstration of the MagneGas2 product and was very impressed with the speed of preheat and cut, as well as the safety aspect of this product."
Shares of MagneGas soared to as high as 99 cents today, and was last up at 95 cents, an increase of 6.4 percent. The stock has advanced nearly 40 percent year-to-date as its sales strategy continues to progress. Last month, one of the largest family-owned wineries in the world chose its MagneGas fuel for a large demolition project in California.