27th Jun 2014 10:11
LONDON (Alliance News) - Graphene NanoChem PLC Friday said it has signed a royalty-bearing patent license agreement with Cetane Energy LLC for the use of its hydroprocessing technology in a move that expands its chemicals portfolio and comes under the planned upgrade of its Lahad Datu refinery.
In a statement, Graphene NanoChem said that the integration of the hydroprocessing technology at the Lahad Datu facility would allow the group to manufacture a range of high margin products, comprising of hydrogen-derived renewable diesel, bioasphalt, bionaphtha and biopropane. It said that the technology also has a low-capital profile and flexibility to use the group's current feedstock base.
The licence granted includes the right to sub-license the technology providing further avenues for market expansion, Graphene NanoChem said.
"We are confident in the immediate and long-term demand for bio-based fuel additives, and advancing into the renewable diesel market is a natural progression for us in capturing value through higher margin products within the market segment," Chief Executive Jespal Deol said in a statement.
The CEO said that the company expects to begin the upgrade of the Lahad Datu Facility in 2015.
"The licensing arrangement with Cetane Energy provides a strong foundation upon which we could expand our products portfolio and take this project to commercialisation," Deol added.
Graphene NanoChem shares were Friday quoted at 50.00 pence, up 0.5%.
By Samuel Agini; [email protected]; @samuelagini
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