Australia-based Eden Energy has sold all the shares in its two US subsidiary companies: Eden Cryogenics LLC, which has two operating businesses (Eden Cryogenics and Cryogenic Technical Services which manufacture cryogenic equipment and supply cryogenic design services) and Eden Hydrogen Inc which operates the business known as HyRadix which manufactures hydrogen reformers.
Eden acquired US-based HyRadix, a company specializing in on-site autothermal reforming systems for the production of hydrogen from methane or LPG, in 2007. (Earlier post.)
The sale to an unnamed Australian company did not include:
Any of the assets or liabilities of Hythane Company, which Eden set up in 2004. Hythane is a mix of hydrogen and natural gas. All the assets and liabilities (including all existing contracts and intellectual property including patents and the Hythane trademark) of this business have been transferred out of Eden Hydrogen Inc into a new US subsidiary company of Eden that is also called Hythane Company LLC, which Eden will retain.
All shares in Eden’s wholly owned Indian subsidiary, Eden Energy (India) Private Limited, together with all assets and liabilities of this subsidiary, are retained by Eden, and this company will continue to actively market the Hythane and dual fuel technology in India. (Earlier post.)
The purchaser has agreed to supply to Eden and install in India, free of charge, the first HyRadix Aptus 100 hydrogen reformer which is currently being built in India and which is hoped to occur before the end of March 2009. This reformer is planned to be used by Hythane Company to supply hydrogen to the first Hythane bus demonstration project in India which is now planned for some time around mid-2009.
The new owner also will supply to Eden any additional Aptus reformers required by Eden or its subsidiaries for a period of five (5) years (with a right to renew) commencing from settlement at cost price plus 10%, provided that these reformers cannot be resold for production of hydrogen for industrial gas purposes.
Hythane Company is planning to focus on the US and Indian markets, with a heavy emphasis on achieving early positive cashflow from the sale of its proprietary dual fuel kit for power generation, and at the same time actively promote the use of Hythane as the transitional fuel between the hydrocarbon and hydrogen economies as is planned in the Indian Government’s Hydrogen Roadmap.
Hythane Company will grant to the purchaser an exclusive nonassignable ten (10) year Australian licence (with a right to renew), on reasonable commercial terms (including reasonable periodic performance targets), to use the trade mark “Hythane” and Hythane Company’s proprietary dual fuel and Hythane technology in Australia in consideration of Eden receiving a royalty of one percent of the gross revenues received from the use of the technology.
In December 2008, entered into a conditional contract to sell a portion of its Welsh Coal Bed Methane and Abandoned Mine Methane assets to a large, publicly listed, UK energy utility.
The sale of assets raised A$7.6M (US$5 million). A$2 million of which was for Eden Cryogenics and Eden Hydrogen.
In addition to its ongoing focus on Hythane and its remaining coal bed methane assets, Eden says that it has three priority projects in the works:
Pyrolysis Project – University of Queensland. The aim of this patented process is to crack the methane molecules into hydrogen molecules (which can be burnt as a fuel and produce no CO2) and carbon nanotubes from the carbon (rather than producing CO2). Eden has reached agreement in principle with the University of Queensland (UQ) for Eden to take a licence from UQ over its 50% interest in the patents and intellectual property developed by this project, to enable Eden to progress its initial discussions with major overseas companies in relation to the up-scaling and commercialization of this technology.
New Gas to Liquids Research Project – University of Queensland. Eden and UQ have taken out a provisional patent application on a new simplified method of producing liquid hydrocarbons and hydrogen from methane, and have secured a A$500,000 Australian Research Council Grant to fund a significant portion of the 3-year project. Preliminary indications are that the process has potential for production of both ethylene (which is used in the plastics industry as a major feedstock) and liquid motor vehicle fuel from natural gas, with encouraging economic potential particularly related to stranded natural gas fields in remote locations.
Geothermal Energy – Australia. Eden is seeking either a suitable major investor or joint venture partner to join in undertaking the planned exploration and development program on the various geothermal licences held by Terratherma Ltd, Eden’s wholly owned subsidiary company.