Shares of MagneGas (NASDAQ:MNGA) closed 1.5 percent higher on Friday after receiving multiple purchase requests for its patented acetylene replacing MagneGas(NYSE:R) fuel from a major utility company boasting US$35 billion in assets in the northeastern United States.
Indeed, 40 representatives from the utility's fossil fuels division, the one most familiar with acetylene and propane, have asked for the next steps to assess the viability of its fuel after a week of metal cutting demonstrations.
MagneGas is already addressing the procurement process with the Utility, which consumes many cubic meters of acetylene throughout the year.
The test used MagneGas to cut 2 inch steel plates and resulted in very little pre-heat time with clean cuts.
"The overwhelming feedback of these meetings was positive as they compared MagneGas2 to acetylene. The pre-heat was much quicker than acetylene and the speed of the cut substantially faster. A key strategy of ours has been to demonstrate our fuel to marquee customers to enable our pull through purchasing with local distribution. We are working through the procurement process with the Utility and expect to be filling orders shortly," said MagneGas's CEO, Ermanno Santilli.
MagneGas has impressed other important organizations with its acetylene replacing fuel. The US Navy, for example, is already aMagneGas customer, having purchased an order of MagneGas2 after an earlier demonstration.
Customers and independent testers of MagneGas2 have inevitably praised its ability to cut faster than acetylene while being much safer to operate thanks to its lighter than air density, reduced slag and lower oxygen consumption.
While very common, acetylene is chemically unstable and can be dangerous because it is heavier than air, which means that if it escapes into the atmosphere, it does not dissipate rapidly, settling and accumulating near ground level.
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.