EDEN INNOVATIONS LTD — Call Transcript 2011

Feb 24, 2011

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ACN 109 200 900
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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

25 FEBRUARY 2011

BoardRoomRadio.com AUDIO BROADCAST

EDEN ENERGY LIMITED (EDE) provides the opportunity to listen to an audio broadcast with Mr Greg Solomon, Executive Chairman in a presentation titled "Eden sells OptiBlend® technology into India, US and Europe - Gregory Solomon, Executive Chairman" .

To listen , copy the following details into your web browser: brr.com.au/event/ 76031

The presentation details are as follows:

• Eden sells OptiBlend® technology into India, US and Europe - Gregory Solomon, Executive Chairman

• Presented by Mr Greg Solomon, Executive Chairman

• Friday, 25 February 2011 08:30am AEST

Transcript

RADIO INTERVIEW WITH GREG SOLOMON, EXECUTIVE CHAIRMAN, EDEN ENERGY LIMITED, CONDUCTED ON THURSDAY, 24 FEBRUARY 2011

Q1 Today I’m talking with Greg Solomon who’s the Executive Chairman of Eden Energy, and today we’re talking about Eden Energy’s new sales of their OptiBlend dual fuel kit into India, the United States and Europe. Greg, welcome.

A1 Thank you very much, Tom. Q2 Now, Greg, for those investors who are not up to date on the OptiBlend dual fuel kit, can you just take us through the technology and then what it does?

A2 Yes. Tom, this is a system that we developed some two or three years ago where you can operate a diesel-powered engine, and in particular for power generation, on a mixture of diesel and natural gas. The natural gas is added into the engine through the air intake, it goes in with the air, so you use – some of your fuel comes from the diesel and a greater proportion comes from the natural gas. We’re able to achieve, with the kit that we have developed, something in the order of about 70 per cent natural gas and only about 30 per cent diesel, and that becomes very relevant in places where the price of natural gas is falling and the price of diesel fuel is increasing, as is happening in the US and Europe and other places where there’s a big supply of natural gas emerging.

Level 40 Exchange Plaza, 2 The Esplanade, Perth, Western Australia, 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866 Website: www.edenenergy.com.au

Q3 And is this a world first?

A3 No, there are certainly other companies that do duel fuel systems. Ours is unique in it has got certain features that make it unique, and we’ve been able to achieve some results that, as far as we’re aware, are better than certainly most of our competitors. We have been working on it for some time. We now have indigenised the Indian supply so all our Indian supplied units are almost entirely sourced in India. So we’ve managed to get our costs down, and we’ve got a very, very competitive product. We’ve got a product that is extremely technically advanced and is very competitively priced.

Q4 Okay. So low cost, high quality product. Now, this dual fuel kit’s being sold, as I mentioned earlier, into India, the United States and Europe. What are the details of these arrangements?

A4 Yes. Well, firstly, India was the first place where we actually had our first sale. We had three sales into the largest tea plantation company in the world in Assam at the end of 2009 and that was trialled and we got very good results there. In 2010 we did an installation on a 1250 kVA gen set – that’s about over 1 megawatt; they’re big generators – in a very large engineering company in Mumbai and, based on the results of that, we then secured our first sale to a major Indian equipment manufacturer in Delhi, and that was installed in January. We got more than 70 per cent natural gas displacement of the diesel and they were happy with that, and they have now given us a repeat order, so we’ve got our first repeat order from a commercial customer. The significance of that is that that customer, for argument’s sake, has got plants all over India for building their machinery, and they will have something in the order of about 40 of these to install progressively as natural gas becomes available across the country. So we see that as a very interesting market. That is just one customer out of literally hundreds of thousands across India. The United States market – we sold one into Texas where it has been awaiting trial, but the one that we have just recently secured is to one of the very large US gas utility which is installing it for its own trial and purpose, but they’re proposing to actually use it to market to their potential customers. They want to sell the people gas and so they want to market it to companies that are operating diesel-powered generators and put this dual fuel kit on so they start operating on a mixture of gas and diesel rather than just pure diesel. And similarly in Europe, the same sort of situation – it’s a European diesel generator manufacturer. When I say manufacturer, I mean a company that takes engines from different companies and also takes power generators from different companies and puts the two together and makes what they call a generator set or a gen set. And this company has taken one of the dual fuel kits and they have installed it themselves and they are going to also market it out to their various customers. They were able to do that one in that case without having any of our engineers fly over there, and that is with the addition of the new feature that we have just added, whereby the equipment, if it’s properly installed, can regulate and set itself for the installation and set its operating parameters.

Q5 All right. And, Greg, how do you plan to continue this good work and further expand the sales effort?

A5 Well, the work is continuing with a very solid and continued push. We’re appointing distributors in all markets, both India, US, Europe and also into places like South America where there’s a large number of diesel generators. We’ve got further work being done in terms of optimising the equipment that we are buying and the sourcing of the equipment to bring the costs down and, by and large, I think it’s really just a case of being very focused on securing further sales,

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achieving very high-quality installations, very high performance results, and the market will grow on the back of that. In India we’re largely marketing in conjunction with the natural gas supply companies, the same as what we’re talking about in the United States and, as natural gas is rolling out across the country, so too we are working with the gas companies to install these kits as soon as the gas becomes available to the major industrial customers. In India at the moment there are about 30 cities that have natural gas supplied to them but, over the next five years, they’re planning to roll the natural gas out to over 300 cities. So working with the gas companies is a very good way for us, because we’re able to come to the market and deal with the customers as soon as the supply of natural gas is available. From the gas companies’ point of view it’s a very positive outcome, because they can immediately start getting large volume sales as soon as they put their gas pipelines in and so they start getting a return on their investment. From our point of view, obviously, it works extremely well that we’ve got someone else opening up the market largely for us, and we’re just working in a very sort of symbiotic relationship with them. So these are the same companies that we have been working with on the Hythane project in India. The Gas Authority of India is the major gas supplier, MGL in Mumbai, MNGL in Pune, UGL in Kanpur and so on. So there’s a significant overlap between our total Indian operation and this market, and we see a very, very great potential. There is also a very interesting further overlap and that is that, if Hythane is actually available, the addition of a bit of hydrogen into the natural gas mixtures, you can take your displacement of diesel to over 80 per cent. And so, as Hythane gradually rolls out in India, we see that as being a further enhancement of this overall project.

Q6 Okay. Well, thank you very much for that update. Those relationships sound very beneficial for the Company. Thanks for your time.

A6 Thank you very much, Tom.

INTERVIEW CONCLUDED

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Gregory H. Solomon Executive Chairman

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