Consol Energy Inc. acquired a 25% equity stake in newly formed holding company CFOAM Corp., making its entry to the coal-to-products space. ASX-listed CFOAM Ltd. owns the other 75% of the company.
The Pennsylvania-based coal producer invested $3.5 million in return for the equity ownership, according to a Jan. 8 news release, and estimated the total addressable market for the CFOAM products at more than $15 billion per year.
Consol Energy also provided a $1.1 million term loan to CFOAM Corp. subsidiary CFOAM LLC and acquired a first lien note from the unit for $400,000.
"CFOAM products are used or being developed for a wide range of markets including composite tooling for the aerospace sector, as well as energy absorbing, structural, and defense applications," Consol Energy President and CEO Jimmy Brock said in the statement.