Monday, November 4, 2013

Quantum Fuel Systems (QTWW) $3.2M in Further Agreements Advances Aftermarket Natural Gas Conversion Solution for Heavy Duty Diesel

Quantum has successfully leveraged their extensive experience in vehicle systems integration to bring natural gas, the lowest cost transportation fuel available and also the cleanest of all fossil fuels, to the forefront of the OEM market, with solutions for new or existing vehicles/fleets featuring the company’s top of the line High-Pressure Compressed Natural Gas (CNG) Fuel Storage Modules and Tanks. The company was pleased to report another milestone in their conquest of this space today as they broke the word of an additional $3.2M in new agreements with innovative Chandler, AZ-based heavy duty diesel to natural gas conversion clean tech developer, ZHRO™ Solutions, following on their previously awarded $2.6M development agreement.

The ultimate goal here is to deliver a cost-effective and extremely robust aftermarket fuel system conversion solution for heavy duty diesel fleets, employing QTWW’s multiple decades of experience to realize a fully-integrated CNG storage and delivery architecture incorporating both ZHRO’s revolutionary injection/engine conversion system and Quantum’s Q-Lite™ tanks. The Q-Lite is an ultra-lightweight composite tank (70% lighter than steel cylinders) that is also capable of storing more CNG than equivalent high-pressure vessels. Safe and reliable with a 3.6k psi service life rating of 20 years, these NGV2-07 and ISO 11439 certified cylinders will form the backbone of the aftermarket solution.

Storage modules and the natural gas fuel systems for several validation vehicles will be supplied by QTWW under the agreement, and the company will also oversee the fuel system and engine control system software development/integration, as well as providing the necessary oversight. QTWW is targeting a Q4 deployment this year for the full-scale systems and intends the deployment to serve as a representation of a production release for the design. ZHRO has already prepared a marketing and finance strategy to jump start the commercial launch and is even preemptively contracted with several key distributors in North America.

This strategic development agreement was hailed by COO of ZHRO, John Madrigal, as being of utmost importance, as the advancements made by QTWW on developing the fuel system thus far can now be enhanced, super-charging ZHRO’s accelerated commercialization plans. QTWW has been fully creating and validating production software controls for commercial markets about as long as the alternative fuel and hybrid-electric OEM vehicle space has been around, making the company a perfect choice for ZHRO’s deployment and spelling ready success to seasoned investors.

President and CEO of QTWW, Brian Olson, was obviously excited to be moving much more rapidly now towards commercialization of this important heavy duty after-market solution, and he reassured markets that the company’s rock solid track record handling all aspects of system development through integration, validation and the eventual commercialization of the product would really pan out here. Indeed, QTWW has a virtually unmatched capability in advanced natural gas fuel systems, storage and integration.

The sophistication of this development spells incredibly good news for the nation’s roughly 4M plus medium and heavy duty diesel trucks and fleet operators are eyeing this strategic development hungrily, realizing that the exceptional attractiveness of natural gas over diesel from a cost standpoint will bring in fatter bottom lines. Longer-term we have the superb exhaust particulate emission metrics and the environmental benefits that go along with a switch to natural gas, making QTWW a very handy play as legislation will inevitably strike out further into this territory in coming years.

Find more Quantum Fuel Systems Technologies Worldwide, Inc. info at www.QTWW.com

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