Poland's Baltic Ceramics Investments is issuing shares to help fund construction of a factory that will produce a high-tech substance used in hydraulic fracturing, part of a developing supply chain for eastern Europe's shale gas sector, says Reuters.

The company plans to produce ceramic proppants, tiny and almost indestructible engineered spherical balls that are injected deep underground to help push oil and gas to the surface, part of the process called hydraulic fracturing.

Ceramic proppants, which can withstand high temperatures and pressures, are used to keep the fractures in the shale rock open, especially if deposits are more difficult to tap, which experts say is the case in Poland.

Reuters reports that over 50 exploratory shale wells have been drilled so far in Poland, and it is believed that dozens more are required to determine whether large-scale commercial production of shale gas is viable.

Baltic Ceramics wants to have the factory up and running in the second half of 2015. It has made successful tests of its product in the US and is ordering equipment for the factory.

The company has received $11 million from the European Union's structural funds, a further $4 million from Poland's public funds for boosting innovation, and is currently issuing $3.4 million in shares to complete financing for the project.

Baltic Ceramics aims to produce 135,000 tonnes of proppants per year, about 5% of global demand. According to Reuters, the company says it owns deposits of enough raw materials to cover up to 80 years of production.