Investors in waste-to-energy company MagneGas Corporation (NASDAQ:MNGA) were likely happy to learn that its Magnegas2 fuel was selected by two divisions of the New York City Department of Transportation for use in metal-cutting and repairs.
The MagneGas stock jumped 12.74% to close Wednesday at $0.77 on volume of 3 million shares.
MagneGas converts liquid waste into a hydrogen based fuel through a patented technology which gasifies or sterilizes a number of liquid wastes and produces a gaseous fuel known as MagneGas. MagneGas is a cost competitive and clean burning fuel that is interchangeable with Natural Gas, Propane and Acetylene and it can be co-combusted with existing hydrocarbon fuels.
The company’s technology seems to be making progress and is getting wider acceptance in industrial applications both in the US and abroad.
MagneGas Corporation (NASDAQ:MNGA) clinches $2.65 million sale
A couple of days earlier, the company announced its win of $2.65 million sale to manufacture and deliver certain equipment and supplies to a company based in Germany. This includes the company’s proprietary gasification and sterilization systems, MagnesGas2 fuel and cylinders.
“The entire MagneGas team is excited about this opportunity because it holds the potential to open up target markets that desperately need our technology and the fuel it can produce,” said Ermanno Santilli, CEO of MagneGas Corporation. “This sale is the largest sale in the history of MagneGas and will provide us the opportunity to expand further into Europe.”
The company gasification system will produce MagneGas2 fuel that will be sold in the German market, whereas the sterilization system will provide demonstrations to facilitate entry into the agriculture and municipal wastewater treatment markets in Germany.
This sale could serve as a launching pad for the company’s technology and the MagneGas2 fuel across the European continent and its metal-cutting fuel market.
MagneGas Corporation (NASDAQ:MNGA): MagneGas2 adopted by Fortune 100 global auto manufacturer
On October 3 the company announced that it global auto manufacturing company in the United States had completed its installation of MagneGas2 in one factory and had commenced its procurement process for a second factory according to the company, the automaker may also continue the use of MagneGas2 in many other factories as part of a larger rollout.
Last month the company purchased 2000 additional fuel cylinders to service the increasing demand for MagneGas2 from industrial customers including utilities, demolition companies, first responder markets and major manufacturing companies.
“Our industrial gas segment, which not only includes MagneGas2® but welding supplies and other gases, has increased at an almost 20% rate,” said Santilli. “We believe this is a direct result of customers’ use of MagneGas2 which we believe is a superior product that leads to further sales of the Company’s products.”
Technically, shares in MagneGas are exhibiting a rising trend after making a double bottom in June and July this year. Investors should enter the stock once it is able to cross the 200 day moving average at $0.90.