As we continue to speculate on the nature of Plan B, I would...

As we continue to speculate on the nature of Plan B, I would like to once again draw your attention to what are now two very well-publicised statements/quotes which I believe are key to understanding what it might be.


(1) "And we've learned how to control it [fly ash]. We've learned how to alloy it to make and enhance properties."

(2) "We're putting in a Plan B so that we can never, never fail. And that no matter how long it takes for the oil and gas markets to improve, we can utilise our technology for the good of LWP and it's shareholders."

Although the oil price is expected to start improving towards the end of the year (I have seen articles stating a longer timeframe), there is of course no guarantee that it will reach the widely estimated $60 threshold required to jump-start activity in the oil patch. So while our HSP/ISP could very well be game-changers at the right oil price and knowing that it would then take between 9-12 months to retrofit/build a plant and get it into production, it would certainly be prudent of management to investigate other means of leveraging and monetising LWP's proprietary technology - it's core business. This IMO would not only offer the potential for earlier, diversified revenue streams, but would also act as a counter-cyclical 'buffer' that could effectively shield us from economic headwinds, regardless of how strongly they blow. So when Ziggy says "... no matter how long it takes for the oil and gas markets to improve, we can utilise our technology..." and "... so that we can never, never fail.", I tend to find myself in agreement with a speculative statement made by @olderwiser that "... it will be outside the oil and gas arena and will use LWPs technology." In my mind, it makes perfect sense.


So naturally, the question then becomes "Where can we potentially utilise our technology?" Well, I don't claim to have the answer on this one, but as David said "... we've learned to control it [fly ash]" and "We've learned how to alloy it to make and enhance properties." With that kind of IP in our back pocket, my feeling is that we could go in any number of directions, some of which (tiles and bricks) have been already mentioned by the likes of @MR. Heman and @ThePiedPiper earlier this morning.

So what are some some of the more commonly known applications for fly ash outside of proppants? Here are some to get us thinking:

Source: Flyash Australia

• Premixed Concrete
• Precast Concrete
• Concrete Road Pavements
• Stabilised Road Base
• Roller Constructed Concrete Dams
• Roller Constructed Concrete Pavements
• Shotcrete
• Concrete Masonry
• Flowable Fill
• Mine and Land Fill
• Geopolymer Concrete

The other interesting comment was "We've learned how to alloy it..." So what is an 'alloy'?

Source: Wikipedia

"An alloy is a mixture of metals or a mixture of a metal and another element. Alloys are defined by metallic bonding character.^[1] An alloy may be a solid solution of metal elements (a single phase) or a mixture of metallic phases (two or more solutions). Intermetallic compounds are alloys with a defined stoichiometry and crystal structure. Zintl phases are also sometimes considered alloys depending on bond types (see also: Van Arkel-Ketelaar triangle for information on classifying bonding in binary compounds).

Alloys are used in a wide variety of applications. In some cases, a combination of metals may reduce the overall cost of the material while preserving important properties. In other cases, the combination of metals imparts synergistic properties to the constituent metal elements such as corrosion resistance or mechanical strength. Examples of alloys are steel, solder, brass, pewter, duralumin, phosphor bronze and amalgams."

So why would we use fly ash in a metal alloy? I thought the following excerpt a 1994 journal article abstract summed it up nicely:

Source: Springer Link

"The cost of metal-matrix composites has been one of the major barriers toward their widespread application. This paper describes the development of cast aluminum-fly ash particle composites (ash alloy). Incorporation of fly-ash particles, which are a waste by-product of coal-based power generation, reduces the cost of aluminum castings by acting as a filler; decreases their density, and increases their hardness, abrasion resistance, and stiffness. Several prototype castings have been made from aluminum-fly ash composites to demonstrate their castability. With sustained research and the support of manufacturing organizations, these alloys can find widespread applications as low-cost aluminum composite components."

Hmm... the mind boggles. Think 'car parts'... think 'every day aluminium structures'...

What has LWP stumbled upon?! IMO it's much bigger than proppants... and that's big!

I'm sure there are many more potential applications out there, but these two above (construction materials and metal alloys) - in addition to our beloved proppants - could represent excellent additional revenue generating opportunities... if not by LWP, then certainly by someone else!

I shall leave you to contemplate the above and read between the lines.


gh.