Why the Eden Innovations Ltd share price skyrocketed today

The Eden Innovations Ltd (ASX:EDE) share price has been a huge mover on the market today following two positive announcements. Is it a buy?

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One of the biggest movers on the market this morning has been the Eden Innovations Ltd (ASX: EDE) share price.

With two positive announcements out of the innovative clean energy company, it certainly won't come as a surprise to see its shares are up a massive 15% to 32.7 cents.

In the last 12 months the Eden Innovations share price has more than doubled in value thanks largely to some impressive trial results from its EdenCrete carbon nanotube enriched liquid concrete admixture.

A full depth slab replacement field trial on Interstate Highway I-20 initiated in August 2015 showed no visible signs of cracking or significant signs of wear after 12 months on the EdenCrete enriched section of concrete.

Whereas a section laid without EdenCrete at the same time on the same lane and with the same concrete mix showed significant cracks developing.

These impressive results didn't just catch my eye, but appear to have caught the eye of a number of Department of Transports (DoT) throughout the United States.

This morning the company announced that the Texas DoT has approved the inclusion of EdenCrete in two concrete mixes for a major Texas pre-cast concrete manufacturer for use in pre-stressed bridge beams and other pre-cast products in the state.

Management estimates that the deal could be worth as much as US$1 million per year in sales.

Furthermore, the company announced that the Virginia DoT has just approved EdenCrete's use as a specialty admixture in concrete for roads and bridges.

The approval in Virginia means that EdenCrete is now approved for use in one or more applications by the Departments of Transportation in five U.S. states. Pleasingly management isn't resting on its laurels and has applications in place with other state DoTs.

The share price of major shareholder Tasman Resources Ltd (ASX: TAS) has also rallied 14% on the news today. Tasman Resources holds a 39% stake in the company.

Should you invest?

I think Eden Innovation has an extremely bright future ahead of it, especially if President Trump is able to follow through on his trillion-dollar infrastructure promise.

Whilst it is still a little too soon for an investment for myself, as I have said previously, it could be a good option for investors with a higher tolerance of risk.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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