Versarien (LON: VRS) has shown that it's possible to use graphene - through a product called cementine - in concrete. This produces something lighter and stronger than the usual forms of concrete and also reduces carbon emissions from cement production. This is interesting in an industrial sense, of course it is. There are one or two little problems before this becomes wholly widespread in use, one of which is: “could offer almost 4.4 million kg of CO2 savings per year at a cost the Company believes is competitive for this level of emissions reduction.” One way of reading that is that there's no obvious way of making money out of this as yet.
Yes, of course, we all want to reduce carbon emissions. Yes, cement making is between 6 and 8% (depends who is counting) of all human emissions. So, cement's a good place to go looking for emissions reductions. This addition of graphene to the mix enables less cement to be used in making the concrete - that therefore reduces emissions from the cement making. There is no useful manner of reducing cement making emissions because the process itself is, really, the driving off of CO2 from the source calcium carbonate. Not that this is wholly accurate, but if the process is taking CO2 out of CaCO3 then really, it's not possible to do this without producing CO2. But reducing the amount of cement we need to use is a pathway to lower emissions all the same.
But here's the thing - we need to find someone to pay for this. We've not got a proper carbon tax - something that would solve this economic problem. We've also not got a proper permit trading system. So it's very difficult to monetise this reduction in emissions. So, while the process works it's difficult to see how money will be made out of it - unless people voluntarily pay for the emissions reductions. Which some will, but will the general market?
Versarien share price from London Stock Exchange
It's solving that economic problem that will make the share price move there.
We also think there's something of more general interest here. Concrete - cement - has been around for a couple of thousand years now, the Romans used a lot of it. Graphene has been known about for a couple of decades now and everyone agrees that the allotrope of carbon is really wondrous stuff. But how to actually use it? That the answer seems to be one of our newest technologies boosts one of our older is fun. It's also that more general market of the point that we never really do know what new technologies will change. Often enough it's ones that we'd really not, at first sight, expect.
