Nanofilm Technologies International is forming a joint venture with Temasek to generate growth in the so-called “hydrogen economy”, increasingly touted as a cleaner substitute for the fossil-fuel economy.

The joint venture, Sydrogen Energy, will tap on Nanofilm’s capabilities in applying its advanced nano-coating to critical parts in fuel cell and electrolyser systems, which is poised to enjoy wider commercial application as more attention is focused on sustainability principles.

The parts, with Nanofilm’s coating, can be used for a longer period.

Thus far, the bigger proportion of Nanofilm’s advanced nano coating is applied elsewhere such as car parts and consumer electronics gadgets.

Sydrogen will be Nanofilm’s vehicle to capture all related hydrogen energy business. Hydrogen is touted as some industry observers as the next big energy play.

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“The proposed partnership will feature heavily in our sustainability commitment, as we entrench our role as a critical supply chain player in the hydrogen economy, contribute to carbon neutrality and offer a sustainable energy source for the global economy,” says Nanofilm’s executive chairman Shi Xu.

“ESG is and will continue to be a key emphasis of Nanofilm’s solution offerings as we incorporate sustainability and societal impact as key considerations in our technology and applications. Our goal is to achieve betterment of our society at large through our technologies,” he adds.


SEE:Nanofilm Technologies issues 2.1 mil new shares


Lee Liang Huang, Nanofilm’s CEO, explains that compared to conventional technologies, Nanofilm’s coating technologies and production processes are greener solutions and are executed in an environmentally sustainable manner.

“Our advanced materials optimise the world’s natural resources by replacing limited precious base materials, extending the useful life of materials and changing the characteristics of materials. Fuel cells and electrolysers are important technologies in developing the hydrogen economy, but they have been plagued by cost and durability issues.

“Leveraging on our coating capabilities in this new application, we believe that it will fast-track the commercialisation path of a wide range of fuel cell and electrolyser applications, with vast growth potential and cost reductions once scaled,” he adds.

In her March 17 report on the company, DBS Group Research analyst Ling Lee Keng notes that Shanghai plans to promote the use of fuel cell vehicles, with a target of 10,000 vehicles on the road by 2025, and is working towards ramping up sales of vehicles powered by hydrogen.

"There is opportunity for Nanofilm to benefit from piston ring players seeking solutions that comply with the new standards. Nanofilm's piston ring solutions have about 30% lower emissions and energy loss," writes Ling, who initiated coverage on this stock with a "buy" call and $6.22 price target.

Nanofilm closed at $5.20 on April 19, up 0.58% for the day.