It has been a sensational start to the new year for shareholders of Eden Innovations Ltd (ASX: EDE). Following another 5% gain yesterday the clean energy company's share price has now risen a massive 35% in January alone.
The catalyst of these gains has been the progress the company has made with its EdenCrete carbon nanotube enriched liquid concrete admixture.
Last week the company announced that the Georgia Department of Transportation (GDOT) had added it to its qualified products list for use in its 24-hour accelerated strength concrete and Class B concrete applications.
Clearly the GDOT was impressed with EdenCrete following the full depth slab replacement field trial on the Interstate Highway I-20 in August 2015.
Those results showed that after almost 12 months the EdenCrete enriched section of concrete showed no visible signs of cracking or significant signs of wear. Whereas a section laid without EdenCrete at the same time on the same lane and with the same concrete mix showed significant cracks developing.
This is a lucrative opportunity for the company, especially as the GDOT annual budget for 24-hour accelerated strength concrete and Class B concrete applications is approximately US$150 million.
But it's not just the GDOT that will be using EdenCrete. Last month the company received its first European order. According to the release the order from a significant European construction company was for 1,000 gallons of EdenCrete worth approximately US$25,000.
Yesterday the company advised that there were over 30 commercial trials underway at the end of the most recent quarter. If the results of these trials are as successful as the Interstate Highway I-20 trial, I would expect to see EdenCrete demand surge.
Especially as these trials extend its use for applications including ready mix concrete, low shrinkage concrete suitable for dams, highly abrasion resistant concrete, and pre-cast applications.
With a Trump administration likely to spend big on infrastructure projects, Eden Innovations could be positioning itself perfectly for explosive growth over the next few years.
Whilst it might be a touch too soon for an investment for myself, I do think that investors with a higher tolerance for risk could do a lot worse than Eden Innovations. Though I would suggest restricting any investment to just a small part of your portfolio.
Other shares in the energy sector that investors might want to consider as an alternative are Caltex Australia Limited (ASX: CTX) and Karoon Gas Australia Limited (ASX: KAR). The latter is acquiring two major oil projects from Petrobras.
