Graphene Manufacturing Group signs exclusive MOU with Alstom to develop graphene products for rail HVAC systems Proactive uses images sourced from Shutterstock

Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) has signed a global exclusive memorandum of understanding (MOU) with French rail manufacturer Alstom to test and develop graphene products for the rail industry, with an initial focus on heating, ventilation and air conditioning (HVAC) systems.

Under the agreement, GMG and Alstom will collaborate on evaluating, developing and commercializing graphene-based products for rail HVAC applications. The MOU is global and exclusive, according to the company.

Alstom is focused exclusively on the rail industry, producing products and services including high-speed and regional trains, metros, trams, signalling systems and rail infrastructure. 

GMG CEO Craig Nicol said that the agreement provides an opportunity to introduce the company's graphene technology into the rail sector.

"Rail systems demand the highest standards of performance, durability and efficiency — and we believe graphene is uniquely positioned to deliver meaningful improvements across a range of applications,” Nicol said. “We look forward to working closely with the Alstom team to develop and commercialise graphene products that will help shape the future of rail."

GMG non-executive chairman and director Jack Perkowski described the agreement as a significant milestone for the company and said it could create an additional source of revenue.

"The fact that a company of Alstom's scale and technical sophistication has chosen to partner exclusively with GMG to evaluate develop and commercialize graphene-based products for the rail industry is a powerful validation of our technology and our team's capabilities,” Perkowski said. “This arrangement has the potential to open a new revenue stream for GMG and reinforces our strategy of targeting large, established industries where graphene's unique properties can deliver measurable, real-world impact."

Shares of GMG added 2.3% on Tuesday morning at C$2.19 in Toronto.