Sparc Technologies and Santos Collaborate on Ecosparc Coating Trial at Port Bonython
SPN (SPN) Share Update November 2024 Tuesday 19th
Sparc Partners with Santos for Innovative Coating Trial
Sparc Technologies Limited (ASX: SPN) has announced a significant partnership with Santos Limited to trial its innovative ecosparc® enhanced anti-corrosive coating at Port Bonython, South Australia.
Instant Summary:
- Sparc and Santos sign a binding trial agreement.
- Ecosparc® coating to be tested in highly corrosive conditions.
- Trial results could lead to commercial use by Santos.
- Sparc's strategy involves collaboration with major asset owners.
Trial Agreement Details
Sparc Technologies Limited has entered into a binding trial agreement with Santos Limited to conduct a collaborative field trial of its ecosparc® enhanced anti-corrosive coating. The trial will take place at Port Bonython in the Upper Spencer Gulf, South Australia, known for its highly corrosive conditions. The objective is to compare the performance of ecosparc® against a leading market anti-corrosive coating.
The trial's success could lead to the inclusion of ecosparc® in Santos' coatings specification, paving the way for its commercial use in protecting critical infrastructure. This marks a critical step in Sparc's strategy to commercialize its innovative coating technology.
Strategic Importance
Sparc's Managing Director, Mr. Nick O’Loughlin, expressed enthusiasm about the collaboration with Santos, highlighting it as a key milestone in the company's journey to commercialize ecosparc®. The trial underscores Sparc's commitment to working with major asset owners across various sectors, including government, defense, mining, and oil & gas, to demonstrate the efficacy of its graphene-based coatings in real-world environments.
With over five years of research and development and more than 10,000 data points from accelerated cyclic corrosion testing, Sparc is well-positioned to showcase the superior performance of its ecosparc® additive. The trial at Port Bonython is expected to provide valuable data that could enhance the reliability, longevity, and cost-effectiveness of steel infrastructure.
About Ecosparc®
Ecosparc® is Sparc's flagship graphene-based additive product, developed to enhance the anti-corrosive properties of conventional protective coatings. By adding small quantities of ecosparc® to epoxy-based coatings, Sparc has demonstrated over 40% improvement in anti-corrosion performance. This innovation ensures the durability and safety of steel structures, making it a promising solution for industries facing corrosive challenges.
The collaboration with Santos could significantly boost Sparc's reputation and market position if the trial proves successful. The potential for commercial use by a major energy company like Santos could lead to increased demand for ecosparc®, positively impacting Sparc's stock. Additionally, the trial's success could attract interest from other asset owners and industries seeking advanced anti-corrosive solutions.
Investor Reaction:
Analysts are likely to view the partnership with Santos as a positive development for Sparc. The trial's outcome could influence investor sentiment, particularly if it leads to commercial adoption by Santos. Investors will be keen to see the trial results and any subsequent agreements for broader use of ecosparc®.
Conclusion:
Investors should keep a close eye on the trial's progress and results, as successful implementation could lead to significant commercial opportunities for Sparc. The company's strategic partnerships and innovative technology position it well for future growth in the coatings industry.