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- Cfoam (CFO) has been handed a major U.S.-based project for its carbon foam products worth around US$2.4 million (roughly A$3.2 million)
- The project was awarded as part of the U.S. Department of Energy’s Financial Assistance Funding Opportunity Announcement
- This funding scheme is part of the States’ Recovery Act, which is designed to help create jobs and stimulate the U.S. economy
- Cfoam has been granted the funding to research larger-scale uses for its carbon foam and transform coal into carbon products
- Carbon foam is a high-end alternative to conventional materials used in thermal insulation, fireproofing, and composite tooling
- Cfoam shares are up almost 35 per cent this morning and trading at 3.5 cents each
Cfoam (CFO) has been handed a major U.S.-based project for its carbon foam products worth around US$2.4 million (roughly A$3.2 million).
The project was awarded by the U.S. Department of Energy (DOE) as part of the States’ Financial Assistance Funding Opportunity Announcement from April this year.
Under the funding scheme, the U.S. government agreed to fund important projects as part of its Recovery Act, which is designed to help create jobs and stimulate the economy.
In Cfoam’s case, the company has been granted the funding to find larger-scale uses for its carbon foam and transform coal into carbon products. The company said success in this area has the potential to bring about major cost savings and the ability to serve a wider market with its carbon foam products.
While the total value of the funded project will be US$2.4 million, this includes direct DOE funding of US$1.9 million (around A$2.5 million) and an investment from Cfoam of around US$500,000 (roughly A$658,000).
Cfoam revealed to investors on December 14 it had been chosen as a frontrunner to be awarded the project under the financial assistance scheme, though it stressed at the time this did not guarantee government funding and negotiations could take up to 75 days.
Nevertheless, just 10 days later, the company was approved.
What is carbon foam?
Essentially, carbon foam is emerging as an alternative to conventional materials used in thermal insulation, fireproofing, and composite tooling.
Cfoam’s products are made from coal, pitch, or lignin feedstock. While the carbon foam looks similar to pumice stone, its properties are completely different; Cfoam claims carbon foam is an ultra-high-end performance engineering material.
According to Cfoam, the material has applications in the military, industrial, aerospace, and commercial product markets.
Though today’s announcement was marked as non-price sensitive on the ASX, Australian investors certainly thought the news was worth buying into.
Shares in Cfoam spiked as much as 50 per cent this morning until paring its win back slightly. Still, at 11:49 am AEDT, Cfoam shares are up 34.6 per cent and trading at 3.5 cents each.
