First Graphene Limited announced it has signed a Joint Development Agreement (JDA) with United Kingdom based ZEBCO Heating Limited ("ZEBCO") to develop and market a unique heating device using the Company's ureGRAPH® graphene. Under the JDA, First Graphene and ZEBCO will jointly develop the device, which is suitable for new installations and can be readily retrofitted into existing domestic and commercial heater systems. Under the JDA, First Graphene and ZEBCO will jointly develop the device, which is suitable for new installations and can be readily retrofitted into existing domestic and commercial heater systems. ZEBCO has secured an initial £50,000 (AUD 87,000) grant from Innovate UK's Fast Start Innovation Fund, which will be used to fund feasibility studies and develop a proof-of-concept unit within the next six months. Currently, the European natural gas market faces severe supply shortages and governments are seeking additional supply in combination with reductions in gas consumption.

The UK and European Union are actively and urgently seeking improvements in efficiency in the gas heating market, especially as there is an immediate need to improve energy security in the continent. A significant portion of national gas consumption is used for heating of commercial and domestic premises. In the UK alone, consumption of natural gas in domestic heating over the past 10 years accounts for 35 - 40% of total consumption, based on a total supply of 850 000 GWh1.

In 2019, UK energy regulator Ofgem estimated that consumers spent about £55 billion on energy on an annual basis 2. However, this value is set to increase significantly; the UK's gas spot price has risen from a baseline of 30 - 60 pence per therm (p/therm) to about 200 p/therm, spiking at 600 p/therm 3. The graphene enabled heating device is reliant on the unique thermal properties of the Company's PureGRAPH® range of materials and is expected to deliver an efficiency improvement of 20 - 30% in natural gas usage over current domestic boilers. Also, because of the nature of the device, nitrous oxide (NOx) and carbon monoxide emissions are reduced or eliminated. This is important because NOx has a Global Warming Potential Factor 300 times higher than carbon dioxide.

The device is also compatible with hydrogen gas as a fuel source, making it a key enabler for the growing hydrogen economy. As hydrogen burns at a higher temperature than natural gas, NOx formation is a particular challenge when hydrogen is combusted in air. 4,5,6 The device will deliver energy efficiency savings, reducing greenhouse gas emissions, and is an enabler to more resilient and secure domestic heating supply.

The Company and ZEBCO have already initiated discussions with leading UK based utility companies and heating system suppliers to exploit commercial opportunities for the new technology. The device is protected by a patent application jointly lodged by the two companies.