Perth-based Eden Energy Ltd's US-based subsidiary Eden Cryogenics LLC will expand its US cryogenic operations through the acquisition of Cryogenic Technical Services for around $246,000, the company has announced.
Perth-based Eden Energy Ltd's US-based subsidiary Eden Cryogenics LLC will expand its US cryogenic operations through the acquisition of Cryogenic Technical Services for around $246,000, the company has announced.
Eden will also issue company founder Glen McIntosh 300,000 options in the company over a three year period, as wll as giving him a royalty on 3 per cent of all production generated revenues.
The full text of a company announcement is pasted below
Eden, through its wholly owned US subsidiary, Eden Cryogenics LLC, which operates a cryogenic design and fabrication facility in Columbus Ohio, USA, manufacturing cryogenic valves, jackets and other components, has completed the purchase of the assets and intellectual property of Cryogenic Technical Services ("CTS"), a company of which Dr. Glen E. McIntosh is President and founder. Cryogenic storage capability of hydrogen is important to Eden as it completes its technology package related to the production, storage and use of hydrogen.
Dr. McIntosh established CTS more than 28 years ago as a world-leading cryogenic design and consulting company and, at the request of NASA, expanded it into specialty fabrication.
Dr. McIntosh is a world renowned authority on cryogenic engineering with more than 50 years experience in the design of a vast range of cryogenic equipment and management of low temperature technology. His work has covered many areas, including thermal and mechanical design of cryogenic dewars, thermodynamic and physical design of process equipment, cryogenic heat exchangers, mechanical and thermal design of superconducting magnet cryostats, research apparatus and other equipment.
Dr. McIntosh has authored or co-authored approximately 75 publications and been granted 7 patents involving a variety of cryogenic innovations covering multilayer insulation, storage and transport dewars and hydrogen liquefaction.
In 2005 Dr. McIntosh was only the twelfth person to receive the prestigious Samuel C. Collins Award, which was established in 1965 by the Cryogenic Engineering Conference in America, in honour of the late Samuel C. Collins, Professor of Mechanical Engineering at MIT whose most notable invention was the modern helium liquefier.
Dr. McIntosh, whose other notable achievements include having served as President of the Cryogenic Society of America, will continue to work for CTS as its Chief Technology Officer.
In addition to Dr. McIntosh, the acquisition of the assets of CTS also brings with it the services of Mr Ken Leonard, another world expert on cryogenic engineering.
The acquisition of CTS with its world-leading cryogenic design, consultancy and fabrication skills dramatically extends the scope and capacity of Eden Cryogenics LLC, which was established in 2006 and is expected to substantially increase the Company's cashflow (sales for the current quarter are already approximately US$500,000) from a wide range of customers, including ASRC (Kennedy) and NASA Glenn, as well open up a far wider market for the broader range of services.
As part of its current development work, CTS is fabricating for Hythane Company a storage container for cryogenic Hythane®, a mixture of Liquefied Natural Gas and hydrogen which has significant market potential for the large truck and locomotive markets which utilise LNG as a fuel. The CTS suite of technology also has great relevance to various other Eden Group companies, including its technology related to liquefaction and storage of LNG and liquid hydrogen. Eden Cryogenics LLC proposes to commercialise and market a range of these technologies on a global basis.
The total cost for the acquisition of the assets of CTS was US$200,000 plus the commitment to issue to Dr. McIntosh, over a three year period, 300,000 options to acquire shares in Eden Energy Ltd, pursuant to the Eden Energy Employee Share Option Plan.
Dr. McIntosh will also receive a royalty of 3% of the production generated revenues to be derived from the commercialisation of the various designs and inventions made by Dr. McIntosh which Eden has acquired.
