Eden Energy strikes nanotube deal with an IND giant

Eden Energy shares soared 4.8 cents, or 84.21 per cent, to close at 10.5 cents on Friday after reaching an intraday high of 20 cents.

Eden Energy signed a non-binding agreement with Indian Oil Corporation Ltd this week, under which the companies will pilot commercial-scale production of a molecular form of carbon known as nanotubes.

The Perth-based company said nanotubes held "significant promise for the emergence of ultra-strong, lightweight construction materials for the 21st century".

"It can open the door to literally hundreds of potential applications in the construction, electronics, transport and medical industries," Eden Energy chairman Greg Solomon said on Friday.

"This is really one of science's Holy Grails - to prove that carbon nanotubes can be produced in commercial quantities at an affordable price."

Eden Energy said nanotubes have been synthesised in small quantities for several years, but the cost has prevented large-scale commercial production other than for high-cost specialised applications.

Under the deal, Delhi-based Indian Oil will farm-in to the development of new pyrolysis technology jointly conceived by Eden Energy and the University of Queensland.

Eden Energy will swap the University of Queensland's 50 per cent interest in the patents and intellectual property for shares in the company.

Indian Oil and Eden Energy will jointly own the intellectual property rights to the technology plus the rights to its commercialisation.

Indian Oil will provide an estimated $2.6 million to $3.6 million over the next two years for the pilot.