Shares of MagneGas (NASDAQ:MNGA) continue to rise, trading 8.78 percent higher this morning, as a major painting systems producer has ordered a prompt supply of MagneGas2(NYSE:R) upon viewing a demonstration of its capabilities.
MagneGas said in a statement that the new buyer, which produces large paint booths and other ancillary systems for the automotive and aerospace industries with in the U.S. and Mexico, will start using the MagneGas2(R) at its Michigan location.
"We continue to be amazed at the number of companies that have contacted us for MagneGas2 demonstrations. Each company has indicated they are impressed with the quality and speed of our cut and the safety features of the fuel. In the industrial gas business, everything starts with the first order, particularly with a new innovative product such ours. We are confident that this will provide a significant foundation for expansion opportunities," said MagneGas's CEO, Ermanno Santilli.
The reputation of the Tampa, Florida based company) is growing rapidly, attracting interest from an ever more diversified group of new and potential customers, after earning the trust of the Central Florida Fire Rescue Department and the US Navy.
MagneGas, which has a proprietary 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 cleaner and faster.
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 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 a major risk for an explosion. Features also include a smaller heat-affected zone, better stability and a lighter fuel composition.