Sparc’s graphene additives reach commercial testing as hydrogen venture advances

First ecosparc delivery marks commercialisation test

Sparc Technologies Limited (ASX:SPN) has reached an important commercial milestone in its graphene additives business: the first 160kg shipment of ecosparc® was delivered in September for use in AkzoNobel’s Interzone® 954 protective coating. The order was supplied from Sparc’s Adelaide facility, which the company says can support additives for about 4.5 million litres of protective coatings annually without further capital expenditure. The delivery builds on the earlier first commercial ecosparc shipment, which involved a tier 1 coatings customer.

Sparc said it now has more than 20 active testing and qualification programs with coatings manufacturers globally, spanning anti-corrosion, conductivity, powder and water-based applications. Those programs represent potential exposure to more than 50 million litres of coatings annually, although the filing does not indicate how many will convert into commercial sales or when revenue will begin at scale.

Corrosion result faces a decisive November test

Sixteen-week cyclic corrosion testing in Sparc’s laboratories showed a 25% improvement in corrosion resistance, measured by scribe creep, when a commercially available solvent-based coating was dosed with ecosparc® containing HydroGraph’s Fractal Graphene. The testing followed ISO 12944-6 methodology and corresponded to the C5 Very High durability exposure specified by that standard.

The result remains an intermediate milestone rather than a signed commercial contract. Sparc expects extended 25-week, or 4,200-hour, testing results in November; only if those results are successful do the parties intend to negotiate a definitive commercial supply and collaboration agreement. The filing’s 16-week corrosion testing had already established the 25% performance improvement, but the longer test is the next commercial gate.

Middle East partnership opens a non-binding route

After quarter end, Sparc signed a non-exclusive memorandum of understanding with Levidian Nanosystems to develop and commercialise ecosparc® enhanced protective coatings across the Middle East and Gulf region. Sparc will handle formulations, laboratory testing, qualification work and field trials, while Levidian will provide graphene, technical support and access to regional infrastructure owners and national oil operators.

The arrangement sets an ambition to establish a binding development or commercial supply agreement within 12 months and assess local manufacturing in the United Arab Emirates within 24 months, subject to an agreed business case. It commits neither sales nor revenue. The Middle East coatings partnership therefore expands Sparc’s commercial pathway, but remains a negotiation and testing program rather than a booked order.

Hydrogen venture advances towards on-sun testing

Sparc Hydrogen, the venture jointly owned by Sparc Technologies, Fortescue and Adelaide University, completed nine months of continuous operation at its SHARP pilot plant and moved into the second phase of laboratory work with SunHydrogen. Phase 1 testing found that SunHydrogen modules produced substantially more hydrogen per module under increased solar concentration inside Sparc Hydrogen’s reactor platform. The potential effect on production costs remains subject to further integration work and a jointly funded technoeconomic assessment.

After quarter end, the venture’s shareholders committed a further A$1.3 million on a pro-rata basis. Sparc’s contribution is about A$468,000, leaving its holding unchanged at 36%. Phase 3 on-sun testing at Roseworthy is planned for early 2027, while Sparc Hydrogen has also secured Generation 1 reactor patents in Japan, Saudi Arabia and South Africa, taking its total granted patents to five. The A$1.3 million hydrogen funding supports the next testing phase, but does not yet establish commercial hydrogen economics.

Cash position leaves little room for delay

Sparc ended September with A$1.135 million in cash after using A$995,000 in operating activities and A$12,000 on investing activities during the quarter. Its Appendix 4C calculates estimated funding coverage at 1.14 quarters based on the quarter’s operating cash use, and the company said it expects that current level of net operating cash flow to continue for the time being.

That quarter-end figure does not include the A$901,500 raised through the October share purchase plan or an expected R&D tax rebate of about A$881,000. Sparc also has a A$679,000 Rockford Capital R&D advance outstanding, including interest at 15% a year, which it expects to repay from the rebate in November. The commercial pipeline is expanding, but the near-term investment case still depends on turning qualification programs into product launches before funding becomes the more immediate story.