AIM-listed Graphene NanoChem has expanded its chemicals portfolio after signing a licence deal with Cetane Energy for the use of its hydroprocessing technology.

The royalty-bearing agreement supports the chemical group's plan to upgrade its Lahad Datu refinery to produce high value chemicals for various industries.

The firm, which is looking to invest in higher value products, explained the addition of hydroprocessing technology at Lahad Datu would allow it to manufacture a range of high margin products.

The agreement includes sub-licensing rights, giving it additional avenues for market expansion.

Chief Executive Officer Jespal Deol said: "We are confident in the immediate and long-term demand for bio-based fuel additives. Advancing into the renewable diesel market is a natural progression for us in capturing value through higher margin products within the market segment.

"The licensing arrangement [...] provides a strong foundation upon which we could expand our products portfolio and take this project to commercialisation."

The upgrade of Lahad is expected to begin in 2015.

As of 13:03 the share price had fallen 3.52% to 48p.

WS

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