April 24 2017
Energy technology company LWP Technologies Limited (ASX: LWP) (“LWP” “the Company”) is pleased to provide this operational and corporate update to shareholders.
Second patent lodged: LWP is pleased to confirm that it has lodged a second patent with the United States Patent and Trademark Office (USPTO) to protect the new technology developed around the Company’s low cost fly ash-based proppants. The patent relates to protection of both the proppant material and the methods of manufacture. Further details will provided when the patent is granted.
While LWP continues to invest in the protection of its proprietary technology and discussions with potential licensees and manufacturing partners in the United States is continuing, some negotiations to date have become protracted. Interest in the Company’s low cost proppant technology remains strong, however, securing the quantum of investment required to establish a Greenfields US manufacturing facility requires significant due diligence and modelling by interested third parties, and the timing of any possible agreement cannot be determined by LWP at this time.
Pune manufacturing facility update: As announced to shareholders on 20 February 2017, to allow the conceptual engineering design for the Pune manufacturing upgrade to be finalised, the board engaged third party, independent experts, Porocel Corporation, to estimate the anticipated throughput capacity of the primary sintering kiln at the facility.
The report has now been has received. The original capacity of the plant when making bauxite proppants was 10,000-12,000 tons per annum, and LWP was hopeful that by implementing its manufacturing processes for fly-ash proppants, the upgrade could increase capacity to 20,000 tons per annum. However, the independent experts concluded that 15,000 tons per annum should be used. This report now facilitates the completion of the conceptual engineering design for the Pune plant upgrade, another important step in the plant’s future commissioning.
As shareholders are aware, LWP holds investments in a number of listed securities and one unlisted unit trust. The sell down of these holdings is progressing, and the majority of holdings are expected to be sold within the next 45 days. Given the Company’s immediate focus on markets outside of Australia, and the fact that meetings have been scheduled with an interested party in the United States early next month, LWP does not intend to attend the APPEA conference in Perth in mid-May.
LWP Chairman Siegfried Konig commented: “We continue to make progress in the United States and India, and the stabilising of oil & gas markets over recent months underpins our confidence in the future of our core technology. We have worked diligently to streamline our cost base and operational focus, and funds from the ongoing and measured sell down of our equity investments provide LWP with t