One of the biggest gainers on the market today with a huge 27% jump in its share price has been diversified clean energy company Eden Energy Ltd. (ASX: EDE).
The surge in its share price comes on the back of positive news out of the company this morning regarding the potential use of its EdenCrete admixture in highway repair projects in the US state of Georgia.
According to the release the Georgia Department of Transportation (GDOT) has advised that it is in the process of identifying several suitable state-funded highway slab replacement projects in which it proposes to specify in the request for tender that EdenCrete be added to the concrete.
Laboratory and field tests have shown that the EdenCrete admixture significantly improves tensile and flexural strength without any compromise to compressive strength, permeability, or corrosion resistance.
The GDOT clearly have been impressed with the field trial on a troublesome part of the Interstate Highway I-20 in Augusta. After almost 12 months the EdenCrete enriched section of concrete is showing no visible signs of cracking or significant signs of wear.
Whereas a section laid without EdenCrete at the same time on the same lane and with the same concrete mix already shows significant cracks developing.
This is great news for Eden Energy and I'm not at all surprised to see the share price jump higher. But it is worth remembering that there is still a long way to go for the company.
It would appear that the GDOT is very impressed with the trial and wishes to test it further. Whilst it would be fantastic if EdenCrete became an integral part of the highway repair process, it must now prove itself in places where different subsurface and wear conditions may exist.
If it passes these tests as successfully as the one on Highway I-20 then I would expect the GDOT to insist on it being included in all future road repair work in the state of Georgia. After which it isn't hard to imagine the company expanding out of the state into the rest of the United States.
But once again I must reiterate my view that it is still early days. Things do look very promising, but I would be hesitant to make an investment until the results of further trials have been released. After all one bad trial could potentially result in EdenCrete's use being dismissed in the future.
For now I would add it to my watch list and instead focus on other areas of the market and less speculative shares such as CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH).
