Invest in a fully developed technology that facilitates the conversion of vehicle fleets to LNG, an abundant, clean and less expensive fuelThe Business
The Company has developed a unique small-scale natural gas liquifier mini-station that is capable of producing, storing and dispensing liquefied natural gas (LNG) as well as compressed natural gas (CNG) on demand. Its units acquire inexpensive raw natural gas from the local utility’s underground distribution system that runs beneath a customer’s site (no trucking of feedstock necessary), and then purifies, liquefies and converts the natural gas into a clean-burning, high-octane automotive fuel – a viable alternative to gasoline and diese1. The technology is fully developed, tested, patented, and ready to deploy. A prototype was tested at a Department of Energy laboratory, which confirmed its effectiveness.
Natural gas is abundant, inexpensive, and clean burning, significantly cleaner than gasoline, Compressed natural gas is a good automotive fuel, but liquid natural gas (LNG) is superior due to increased driving range. LNG is safer than other fuels because it cannot explode or bum since it does not contain oxygen. If LNG is spilled, the resulting vapor warms, becomes lighter than air, and disperses with the prevailing wind. LNG is cheaper since the raw natural gas used to produce a gas-gallon equivalent of LNG presently costs $0.51. However, that cost is virtually offset by a $.50 Federal tax incentive for alternative fuels. Accordingly, LNG is a far cheaper alternative to gasoline and diesel, especially for high-fuel use vehicles.
The Company initially plans to focus on high-fuel use vehicle fleets. The United States has a total available market of over 18.3 million vehicles in fleets with ten or more vehicles, many of which are in non-profit and government operation where alternative fuel mandates are present. The Company’s automated, small-scale natural gas liquifier stations can be deployed directly on-site at a customer’s facilities.
Market
Huge new natural gas fields were recently found in Louisiana, Texas, Arkansas and Pennsylvania. A recent study estimates the United States adequate natural gas to meet nearly 100 years of demand. The United States has lagged behind the rest of the world in switching to natural gas. However, the trend will be accelerated by $4 per gallon gas prices at the pumps. The conversion to natural gas will be seen first in high mileage commercial and municipal fleets.
The United States has 260 million vehicles on the road today, but only 100,000 natural gas vehicles. Conservative projections now predict the United States will have 12% of its vehicle population running on natural gas by 2020.
The Company has spent considerable time and money to develop, prototype, test, and patent its technology. It now seeks an equity partner that can provide the capital necessary to roll out the marketing plan and to go into full-scale production.
Sector: Alternative EnergySegment: Liquified Natural GasRegion: North AmericaFinancing Size: $5m to $20mContact: Shane Campbell
Company: B2B CFO®Telephone: +1 707 753 1588Email: [email protected]