Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) announced on Monday the results of multi-year performance testing of its G Lubricant, a graphene-based additive designed to enhance fuel efficiency in diesel and gasoline engines.
The company said testing conducted over four years, including verification by The University of Queensland, demonstrated that G Lubricant can improve fuel efficiency by up to 8.4% in diesel engines.
GMG is now preparing to commercialize the product, initially targeting fleet owners in Australia starting in April 2025, before expanding into other markets.
“G Lubricant has taken over four years of advanced product testing and is transformational for energy efficiency and emissions reduction for the liquid fuels industry,” GMG’s CEO Craig Nicol said in a statement.
“The next challenge to commercialize this product awaits, which we are eagerly preparing for.”
GMG’s chairman Jack Perkowski described the product as a “category creator” that could redefine the global liquid fuels market.
“The fact that only 1% of G Lubricant is needed to achieve such savings provides a very attractive value proposition for fleet owners,” Perkowski said.
The company estimates that global diesel fuel sales total approximately $1.4 trillion annually and sees a potential market opportunity of $1.2 billion per year for G Lubricant, assuming an average 8.4% fuel savings and pricing equal to 10% of those savings.
The company also said it has filed a patent application for G Lubricant, which is progressing through approval processes in key target markets.
The news was welcomed by investors who sent shares of GMG 10.7% higher in early trade on Monday.
- Updated with share price movement -