RCM Technologies, Inc. (NASDAQ:RCMT) shares ballooned Thursday after the company reported its division Thermal Kinetics was awarded Al-Corn Clean Fuels sanitizer-grade ethanol project.
The recent projects include both USP Grade (U.S. Pharmacopeia) and GNS Grade (Grain Neutral Spirits).
As industry scrambles to retool and pivot to assist in the fight against COVID-19, demand for sanitizers has surged dramatically, and the area is expected to see continued growth.
According to research published by Fior Markets, the global hand sanitizer market is expected to grow from $1.2 billion in 2019 to $2.1 billion by 2027, at a CAGR of 7.5% during the forecast period 2019-2027.
This anticipated growth has led manufacturers to lean on professional service firms and equipment suppliers to assist them in their new strategy and enable them to deliver swift results.
Thermal Kinetics, a division of RCM Technologies (USA), Inc., has been contracted by Al-Corn Clean Fuels to expand its existing Fuel Ethanol facility to produce 20,000,000 gallons per year of USP Grade Ethanol to meet the growing need for the sanitizer market.
Said Chief Operating Officer Thomas Harwood, "The Thermal Kinetics team installed the original plant and it was important for us to maintain that continuity. Additionally, Thermal Kinetics’ process design allowed us to leverage energy integration from the installed systems to the new production line."
Thermal Kinetics is executing additional projects related to the growing demand for sanitizer-grade ethanol. Thermal Kinetics has been contracted by several other customers during the second and third quarters of 2020 to provide detailed design engineering to expand the production of sanitizer-grade ethanol to their existing client bases in the North American market
RCMT shares rocketed $3.75, or 101.6%, to $7.44.
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