GMG Announces Commercialisation Progress Of THERMAL-XR

Graphene Manufacturing Group Ltd. is pleased to announce the following business update of its ENERGY SAVINGS portfolio product – THERMAL-XR (TXR) powered by GMG Graphene.

THERMAL-XR is the Company’s proprietary graphene enhanced heat transfer product that provides potential ENERGY SAVING benefits in a wide range of applications. Since the recent Australian Government approval for GMG to produce and sell THERMAL-XR at scale, the Company has driven sales activities and bolstered related production capacity. Important first sales at scale have recently been secured and the Company’s efforts to widen potential market segments is finding positive reception providing strong encouragement for continued sales focus targeting near term notable revenues.

GMG sales of THERMAL-XR in the Heating, Venting and Air-Conditioning-Refrigeration (HVAC-R) market is growing in various countries in direct sales to HVAC-R Contractors, with efforts to identify and strike arrangements with local HVAC-R distributors ongoing.

The Company has identified a number of markets outside the HVAC-R segment, where it sees expanded opportunities for TXR applications. For example, there is growing interest in THERMAL-XR in the Data Centre and Energy Production markets.

The total available market for THERMAL-XR is now estimated to be in excess of US$28.4 billion, which has the potential to grow as more heat exchangers are needed for cooling space and in other industrial and energy production applications.

HVAC-R Direct Sales
The Company has received a sales order for over AU$130,000 (including GST) for THERMAL-XR sales and service for a large Australian eco-friendly resort for the coating of nearly 200 air conditioners. This is the largest single order for THERMAL-XR which the Company believes shows increased market acceptance of the graphene-enhanced coating system. This is on the back of other local Australian projects converting into revenue. The Company has also run a direct business to business marketing campaign in Australia for the HVAC-R market with the goal of strengthening brand awareness.

The Company estimates the total potential value of THERMAL-XR into the HVAC-R Market is over US$26 billion based on the potential energy saving available of the near 2000 Terra Watt hour (TWh) of energy consumed by air conditioners globally annually as detailed by the International Energy Agency (IEA). Per the IEA, the air-conditioning market is also expected to grow by 150% (over 2016 levels) by 2050.

International HVAC-R Distributor Development
GMG continues to progress and negotiate Distributor Agreements for the purchase and resale of THERMAL-XR for the HVAC-R market in the major demand centres of North America and Asia Pacific. In particular, distributor discussions with a prominent nationwide American distributor are advanced with the aim to move to significant sales soon.

A major wholesale store chain in Thailand with approximately 200 stores has requested a number of sites be further demonstrated with Thermal-XR by a potential distributor before subsequent roll out across the country.

Following the growing market success of TXR for HVAC purposes the Company is increasing efforts to demonstrate heat management benefits into other applications. Recent examples include data centres and energy producers.

Data Centre Direct Sales
Additional THERMAL-XR sales and third-party service projects in Southeast Asia have also occurred – with applications in the data centre cooling sector represents a significant opportunity as according to the IEA it represents up to 1.3% of global electricity demand which the Company estimates could represent an addressable market of approximately US$2 Billion of potential THERMAL-XR sales globally. Accordingly, the Company has commenced first discussions regarding projects with a number of data centre operators.

Energy Producer Sector Development
The Company is also in discussions with various mining, energy and gas producers in Australia, North America and Asia about the potential for application of THERMAL-XR to provide increased heat transfer and corrosion resistance for operations, including gas processing heat exchangers, notably liquefied natural gas (LNG) plants. GMG made an initial sale of THERMAL-XR and coating by GMG for a micro-LNG plant in Australia in late 2022. GMG’s confidence in the success of THERMAL-XR to shift heat faster than would generally be expected is reinforced by the tests published by the Company in the December 2022, outlining the THERMAL-XR heat transfer outcomes verified by University of Queensland.

Taking into account the LNG market opportunity alone, which the International Gas Union noted a total production of 372 million tonnes of LNG in 2022, the Company estimates the total addressable market to be approximately US$400 Million of potential THERMAL-XR sales.

GMG’s Managing Director and CEO, Craig Nicol, commented: “We are very excited to see the reception we are seeing with THERMAL-XR in various channels and applications, including HVAC-R direct for larger business customers, HVAC-R distributors in various countries, data centres and various energy producers. The opportunity for THERMAL-XR in the HVAC-R, data centre and energy producer market is significant.”

THERMAL-XR Coating Blending Project Update
To support the targeted success of TXR as a major business, the Company purchased the TXR blending in September 2022 and subsequently designed and purchased enhanced coating blending plant equipment. It is working towards commissioning the plant in the second quarter of 2023. This blending plant is expected to have the capacity to produce up to two thousand litres of THERMAL-XR RESTORE coating per eight-hour shift, providing the ability to service growth well into the future. GMG has also procured new laboratory equipment for quality assurance requirements, and to carry-on research and development of extensions and enhancements to the THERMAL-XR portfolio into an even wider range of applications.

GMG’s Managing Director and CEO, Craig Nicol, commented: “We are pleased to be able to begin producing our coatings for HVAC-R and other heat transfer applications in-house, as a significant step to becoming a globally recognised brand leader in Energy Saving products.”