Eden Energy plans alternative fuel role - Breaking News - Business - Breaking News

Perth-based alternative energy company Eden Energy Ltd says it is well placed to become a significant player in the global market shift towards low emission vehicles.

Earlier this year the company bought UK-based hydrogen technology specialist Brehon Energy Plc, which holds a swag of patents and patent applications relating to the production of hythane, a clean burning mixture of hydrogen and natural gas.

Emissions from vehicles run on hythane are 50 per cent lower than for vehicles powered by natural gas, which is itself a relatively clean burning fuel.

Eden Energy chairman Greg Solomon says there is no reason the company can't play a major role in the global shift to hydrogen fuelled economies.

"We hold such an advanced position in the sector internationally that commercial returns from our core business drivers should be evident within the next year," he said.

Mr Solomon says Eden has assembled a "who's who" of the US hydrogen fuel industry and, after its recent $8.4 million initial public offering, is touting its services to vehicle manufacturers and governments around the world.

Shares in Eden began trading on the Australian Stock Exchange on Tuesday at 18 cents, before ending down 2.5 cents at 17.5 cents and below their issue price of 20 cents, during a volatile session that saw stocks sold off across the board.

"You could probably have picked better day," Mr Solomon said.

Eden says it is in advance negotiations with a leading Indian maker of natural gas bus engines for conversion to hythane by the end of 2006.

It has also launched an intensive marketing campaign in China, where the government is determined to clean up the chronic pollution in Beijing ahead of the 2008 Olympics.

Mr Solomon says China and India represent "potentially huge markets" for Eden's technology and expertise.

Engines that run on natural gas can be converted to hythane fairly easily, so Eden is working in markets where there is high gas uptake, like Italy and California.

The company also has coal seam methane explorations tenements in South Wales and has ambitions to convert the gas into hythane for UK customers.

It also has an application for a 7,614 square kilometre petroleum exploration licence in South Australia.

Eden has also been granted eight geothermal licences in South Australia's Cooper Basin, where it plans to launch preliminary drilling within six to nine months.

© 2006 AAP