The laser will also enable exciting new advances in areas such as breath analysis for disease diagnosis, researchers said.
University of Adelaide researchers said they have been able to produce 25 times more light emission than other lasers operating at a similar wavelength - opening the way for detection of very low concentrations of gases.
"This laser has significantly more power and is much more efficient than other lasers operating in this frequency range," said Ori Henderson-Sapir, PhD researcher.
The new laser operates in the mid-infrared frequency range - the same wavelength band where many important hydrocarbon gases absorb light.
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"For instance, it should enable the possibility of analysing trace gases in exhaled breath in the doctors' surgery," Ottaway said.
Research has shown that with various diseases, minute amounts of gases not normally exhaled can be detected in the breath; for example, acetone can be detected in the breath when someone has diabetes.
Other potential applications include detection in the atmosphere of methane and ethane which are important gases in global warming.
"The few available sources are generally expensive and bulky and, therefore, not suitable for widespread use," he said.
The new laser uses an optical fibre which is easier to work with, less bulky and more portable, and much more cost effective to produce than other types of laser.
The researchers also reported light emission at 3.6 microns - the deepest mid-infrared emission from a fibre laser operating at room temperature.
"This means it has incredible potential for scanning for a range of gases with a high level of sensitivity, with great promise as a very useful diagnostic and sensing tool," said Ottaway.
The study was published in the journal Optics Letters.