Shares of MagneGas Corp (NASDAQ:MNGA) rose 3.87 percent yesterday after news that a Central Florida Fire Rescue Department has placed its first order for the company's MagneGas fuel after successfully testing it to replace acetylene.
The order, which includes MagneTotes (a portable and lightweight cutting system also available to the general public) was placed through the Municipal Equipment Company, a major southeast fire-rescue supplier and the sole distributor for MagneGasin the State of Florida, where there are an estimated 271 fire departments.
MagneGas, which has a technology that converts liquid waste into hydrogen-based fuel, said it believes the fire-rescue market is an ideal end-user of its special fuel as a replacement to acetylene because it is much safer.
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 cooking oil 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, creating an ignition hazard. Features also include a smaller heat-affected zone, better stability and a lighter fuel composition.
The Central Florida Fire Rescue Department, plans to use MagneGas(NYSE:R) for extractions and other metal cutting uses and first responders have already started training sessions with MagneGas personnel on April 27.
MagneGas has received interest from various parts of the United States. Indeed, In February, one of the largest family-owned wineries in the world chose its MagneGas fuel for a large demolition project in California.
But, the Tampa based company is presently focusing fuel sales on penetrating the Florida market, expecting to expand in neighboring Georgia through its partnership with Municipal.
MagneGas 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.
Shares of MagneGas were trading at US$0.66 today.