QuestAir Technologies Inc is increasing its focus on the biogas market.
The company, which is quoted on Aim and the Toronto Stock Exchange, develops advanced pressure swing adsorption gas purification systems. QuestAir joined Aim on 21 December 2004 and raised £6.4.1m in a placing at 74.5p a share – 745p post-share consolidation. A 10-for-one share consolidation happened on 27 June 2008.
QuestAir will supply integrated biogas plants for what is a growing market thanks to the move to cleaner fuels. The plants upgrade biogas into renewable natural gas so it can be sent through the gas pipeline infrastructure. The company has already supplied 10 of these methane purifiers to customers around the world.
An agreement has been signed to supply US-based Phase 3 Developments and Investments with methane purification products. They will be integrated into Phae 3’s biogas upgrading systems. This agreement initially lasts four years.
QuestAir is jointly developing with Canada-based Terasen Gas a plant that can produce bio-methane from organic waste. British Columbia has an objective to reduce emissions from waste and use more renewable energy. QuestAir, Terasen Gas and Metro Vancouver are involved in a C$1.1m project at the Lions Gate wastewater treatment plant in West Vancouver, which will produce gas from municipal sewage.
QuestAir will continue to sell its hydrogen products. Management admits that QuestAir is unlikely to receive any commercial orders for its large scale hydrogen purifier, the H-6200, in the year to September 2009. ExxonMobil is marketing the H-6200 to the refinery sector.
Results for the year to September 2008 will be released in early December. Revenue grew from C$6.13m to C$6.57m in the nine months to June 2008, with a much greater contribution from engineering services. The net loss was down from C$9.43m to C$6.03m. There was still net cash of more than C$10m but C$9m was raised during the third quarter and cash is flowing out of the business at a rapid rate. The order book fell from C$16m to C$14.5m over the quarter.
At 18.5p a share, QuestAir is valued at £2.08m.
© 2007 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Hong Kong-based childrens’ educational services provider LZYE Group is raising up to £3m via a two-year convertible loan note issue.
Chief executive Tim Hair is stepping down from foundries operator Chamberlin.
AIM adviser XCAP Securities has appointed Guy Peters as head of corporate.
Alexander David Securities Group is selling the eponymous broking operations to its management and turning itself into a shell.