By Angela Macdonald-Smith, Bloomberg
Sydney: Shares in Eden Energy Ltd., an Australian producer of hydrogen fuels and equipment, had their biggest gain in three months after the company agreed to form a joint venture with Larsen & Toubro Ltd. to make products in India.
Shares in the Perth-based company, which have almost quadrupled over the past six months, gained as much as 13 cents, or by 19%, to 80 cents on the Australian Stock Exchange, equaling a record high set last month.
The three-stage accord with Mumbai-based L and T, India’s biggest engineering company, will by late 2008 lead to a 50:50 joint venture for the manufacture in India of Eden’s entire range of equipment for hydrogen and so-called Hythane, a mix of hydrogen and natural gas, Eden said today in a statement to the exchange.
India, with an annual growth rate of more than 8%, requires hydrogen for glass production, food oil hydrogenation and metal annealing, and the government has started a program to develop hydrogen and Hythane as a fuel for vehicles, it said. Eden’s products include a mobile, on-site system that converts natural gas into hydrogen.