Shares in Eden Innovations Ltd (ASX: EDE) have jumped by a third after the company said it was launching a division focused on the defence sector.
In a statement to the ASX on Friday, the company said the new EdenShield division would aim to commercialise the company's product suite across critical infrastructure and national security applications, including drones, data centres, bunkers, military bases, hospitals, and defence-related buildings.
Image source: Getty Images
High tech concrete a differentiator
This would involve using the company's EdenCrete range of concrete additives for ultra-high performance concrete, and carbon nanotube (CNT) infused high strength lightweight plastics, as well as a dual-fuel diesel system for cheaper backup power generation.
Eden said EdenCrete could provide enhanced blast resistance, durability, and thermal performance, which was ideal for military requirements.
The company also had a range of CNT-enriched products including concrete, paint, and other coatings which offered superior electromagnetic pulse and radio frequency shielding capabilities.
These products could be used for protecting aircraft, drones, ships, equipment, and infrastructure "from electromagnetic interference (EMI), high-altitude EMP (HEMP) events, and intentional electronic warfare attacks that could disrupt or disable critical systems''.
On the fuel front, the company said:
OptiBlend, Eden's long proven proprietary, dual-fuel technology extends backup power duration by up to 150%, by replacing up to 70% of the required diesel fuel with lower-cost natural gas, enhancing resilience of critical infrastructure such as military outposts, hospitals, and data centres. This dual-fuel technology solution used for 18 years offers significant benefits at a critical time for record-high fuel prices globally and has the potential to help mitigate spiralling fuel costs and add fuel versatility.
The company said the global aerospace and defence sectors were worth a combined US$900 billion currently, which was forecast to grow to more than US$2 trillion by 2034.
Key milestone
Eden Executive Chairman Greg Solomon said it was a pivotal turning point for the company.
The establishment of EdenShield represents a significant strategic step for Eden as we position our technologies to address the rapidly growing global demand for defence capability and infrastructure resilience. Our long-proven CNT-based solutions offer a significantly superior solution to the traditional products used in the construction and manufacturing of critical defence, military and infrastructure assets. Similarly, our dual fuel technology offers significant improvements to back-up power generation. The EdenShield launch comes at an opportune time for Eden to grow its market presence and offer increased protection and durability for these important industries critical to national security.
Eden shares were trading 6 cents higher at 24 cents, up 33.3%. The shares have been as low as 1.6 cents during the past 12 months.
The ASX small-cap company was valued at $104.1 million at the close of trade on Thursday.
