MagneGas Corporation (NASDAQ: MNGA), a leading technology and alternative energy company that focuses on production of hydrogen based fuel, continues its impressive clientele growth that started in the beginning of this year. The month of May especially has been full of surprises, in which the stock of the company increased in value approximately 120%.
On May 6th, MagneGas announced that one of the largest transportation companies in the United States would be using MagneGas in its railway division for repairs and construction purposes. On May 15th the company announced that after an initial demonstration of the MagneGas2® cutting fuel, the US Navy has purchased their first order of the product. Last week, on May 21st, MagneGas proudly announced that a major producer of painting systems requested an immediate supply of the fuel for metal cutting. The company produces large paint booths and other ancillary systems for the automotive and aerospace manufacturing industries.
MagneGas owns a patent for a technology called ‘Plasma Arc Flow’, which works by gasifying and sterilizing liquid and liquid waste, creating a gaseous fuel called MagneGas. The fuel can be used for various purposes including metal cutting, cooking, heating, or powering natural gas bi-fuel vehicles. Currently the company focuses mostly on the metal working market, which is a multi-billion market. MagneGas has many advantages over acetylene, the most widely used gas for metal cutting purposes right now. MagneGas is a cleaner cutting, hotter burning, lower costing, acetylene alternative that produces significantly lower emissions.
Last year MagneGas revealed it’s a second generation cutting fuel, MagneGas® 2, and the tests performed using it generated impressive results. The fuel cuts about 40% faster than acetylene, while producing less smoke and providing a clean plasma quality cutting.As we mentioned in our previous coverage about MagneGas, investment risks associated with the company are in market penetration abilities and client growth. It seems that these risks are disappearing over time. The new wave of clientele growth is expected to continue for MagneGas as more and more companies and organizations are deciding to test the fuel. The next client for the company might be a second top ten utility company in the United States, and a formal demonstration and testing of MagneGas2® has been scheduled for June.