HIGHLIGHTS
- Sparc Technologies and the South Australian Department for Infrastructure and Transport (DIT) have signed a binding agreement to undertake field trials of ecosparc®
- Key objective of the field trials is to evaluate the application and performance of an ecosparc® enhanced coating under real-world conditions
- Successful field trials will represent the final stage of testing ecosparc® ahead of commercialisation
- Strong interest in field trials registered from asset owners on the basis of the potential for maintenance cost savings, environmental and sustainability benefits
Sparc Technologies Limited (ASX: SPN) (Sparc, Sparc Technologies or the Company) is pleased to announce the execution of a binding agreement (Trial Agreement) with the South Australian Department for Infrastructure and Transport (DIT).
The Trial Agreement details the terms and conditions under which Sparc and the DIT will conduct collaborative field trials involving the application of ecosparc® enhanced coatings on steel infrastructure.
The DIT has approximately A$45 billion in assets in South Australia (www.dit.sa.gov.au/).
The trials will involve incorporating ecosparc® which is produced at Sparc’s manufacturing facility, into a market leading anti-corrosive coating. Supply of the ecosparc® enhanced coating to Sparc is expected imminently.
The field trials with the DIT will take place at the West Beach Bridge in Adelaide and the Streaky Bay Jetty on the Eyre Peninsula.
Sparc Managing Director, Mr. Nick O’Loughlin commented:
“The Trial Agreement with the South Australian Department for Infrastructure and Transport marks a very significant milestone for Sparc, and we thank the DIT for the innovative approach they have shown by embracing this new technology which will improve asset performance and sustainability whilst lowering maintenance costs for steel assets.
We expect this agreement will be the first of several with asset owners representing a key step towards the global adoption and commercialisation of ecosparc® in anti-corrosive coatings.”
The Trial Agreement with the DIT holds significant importance and is aligned with Sparc’s strategy of working with asset owners to demonstrate the performance of ecosparc® in relevant real-world environments.
The trial locations at West Beach Bridge in Adelaide and Streaky Bay Jetty on the Eyre Peninsula represent highly corrosive coastal environments (Figures 1 & 2).
These are ideal pieces of infrastructure for the first field trials of ecosparc® enhanced anti-corrosive coatings.
Successful field trials will represent the final stage of testing ecosparc® following over 4 years of research and development and >10,000 data points based on accelerated laboratory testing which has consistently demonstrated significantly improved anti-corrosive performance versus conventional coatings.
Following assessment in real-world environments, Sparc believes commercial decisions can be made by asset owners and coatings companies to use ecosparc® enhanced coatings on steel infrastructure.
Figure 1: Trial infrastructure at West Beach Bridge, Adelaide, SA
During the trials, performance of an ecosparc® enhanced coating will be compared with a control area coated with a market leading anti-corrosive paint.
Application of the coatings in each trial will take place under the same conditions on equivalent steel structures to ensure comparability.
The performance of the two coatings will be periodically assessed by an independent third-party expert according to industry inspection and testing protocols.
Figure 2: Trial infrastructure at Streaky Bay Jetty, Eyre Peninsula, SA
The primary objective of the field trials is to evaluate the application and performance of an ecosparc® enhanced coating under real-world conditions.
Sparc has noted the strong demand for field trials of ecosparc® from asset owners as evidence that there is a market demand for better performing anti-corrosive coatings.
Results from the independent life cycle assessment completed in Q3 2023 (see ASX Announcement 12 September 2023) indicated that ecosparc® enhanced coatings can reduce the CO2 emissions and costs associated with the maintenance of steel assets by 18 - 21%[1] and 19 – 23%1 respectively, when benchmarked against the same non-enhanced epoxy based protective coatings.[2]
Sparc believes that successful field trials will encourage market demand for ecosparc® enhanced coatings from large steel infrastructure owners on a commercial basis.
Sparc’s key obligations, as outlined in the Trial Agreement, are to supply the agreed quantities of ecosparc® enhanced and unmodified control coatings to the DIT at Sparc’s cost, along with specified application instructions.
The DIT’s obligations include to provide and prepare the agreed steel infrastructure and to arrange for application of the ecosparc® enhanced and control coatings at its own cost.
A summary of the material terms of the Trial Agreement is set out in an Appendix to this announcement.
The financial impact of the Trial Agreement is negligible. However, the Trial Agreement is material on the basis it represents a key milestone in the testing of the Company’s flagship graphene based additive product on key infrastructure.
Download the ASX Announcement here.
About ecosparc® - A performance additive for Protective Coatings
Sparc Technologies has conducted over 4 years of research and development on ecosparc®, its flagship graphene based additive product.
The addition of very small quantities of ecosparc® to conventional protective coatings, has demonstrated up to 40% anti-corrosion improvement in commercially available epoxy based coatings, ensuring the reliability, longevity, safety and cost-effectiveness of the steel infrastructure they cover.
In March 2023, the Company commissioned its ecosparc® commercial production facility. The facility enables Sparc to provide commercial quantities of graphene based additive product for the coatings industry.
Multiple global coatings companies continue to undertake product evaluation of ecosparc® in their anti-corrosive coatings.
Further to this, Sparc is progressing a campaign targeting asset owners with a view to conducting field trials utilising ecosparc® enhanced coatings on key steel infrastructure such as frames, tanks and structures in a variety of corrosive environments.
Infrastructure owners being targeted include government, defence, mining, and oil and gas companies.
For more information about ecosparc® please visit: ecosparc.com.au
For more information please visit: sparctechnologies.com.au
[1] Bontinck, P, A (2023), Carbon footprint of ecosparc® graphene additive for protective coating applications, Lifecycles, Melbourne, Australia.
[2] Investors are encouraged to refer to the Company’s ASX Announcement of 12 September 2023 for further information regarding the independent life cycle assessment.
Key Facts:
Sparc Technologies and the South Australian Department for Infrastructure and Transport (DIT) have signed a binding agreement to undertake field trials of ecosparc®
Key objective of the field trials is to evaluate the application and performance of an ecosparc® enhanced coating under real-world conditions
Successful field trials will represent the final stage of testing ecosparc® ahead of commercialisation
Strong interest in field trials registered from asset owners on the basis of the potential for maintenance cost savings, environmental and sustainability benefits
Contact details:
Nick O’Loughlin
Managing Director
Mark Flynn
Investor Relations
mark.flynn@sparctechnologies.com.au
+61 416 068 733
