Omnitek has shipped NG engines and conversion kits for Leche Gloria SA's fleet.
Omnitek Engineering Corporation, based in San Marcos, Californa has formed a joint venture with local partners in Peru to convert diesel engines to operate on natural gas, as well as provide services to re-power diesel trucks and buses utilizing Omnitek’s natural gas engines. Based in Lima, Peru, the joint venture will operate as Omnitek Peru S.A.C., with plans to expand from several initial conversion centers in Lima to numerous other locations throughout the country.
The company also said it is in negotiations with several local truck and bus dealerships to provide diesel-to-natural gas conversion services to new vehicles prior to customer delivery.
Werner Funk, president and CEO of Omnitek Engineering Corporation, said “Peru represents an important growth market for our company. The country’s natural gas infrastructure system is excellent, with Peruvian bank loans readily available to fleet operators for conversions and diesel engine re-powering. In addition, support by leading energy suppliers, such as PGN and Petro Peru, will contribute to a rapid expansion of the natural gas market.”
Funk noted that industry sources estimate diesel vehicle conversions for buses during the next few years will reach at least 20,000, with truck conversions expected to reach 50,000. “There are an estimated 500,000 heavy-duty engines in Peru that could be potentially converted to operate on natural gas,” he added.
In March this year Omnitek appointed G&W Group, S.A. as the company’s exclusive product distribution agent in Peru and an initial conversion order valued at $4.5 million for a fleet of beverage and milk delivery vehicles owned and operated by Lima-based Leche Gloria, S.A. “The first shipment of diesel-to-natural gas conversion kits and new natural gas engines for this order has been delivered to G&W,” Funk said.
The conversion order, to be completed over a two-year period, is being financed by the natural gas supplier GNC Energia Peru S.A. in cooperation with Caja Metropolitana, a Lima-based bank that provides individual and commercial financing for the conversion of vehicles to operate on natural gas. The conversion costs are being offset by GNC Energia charging a higher market rate for natural gas, but at a rate still below the cost of diesel fuel. GNC Energia is also financing the cost of installing refueling stations for Leche Gloria.
Omnitek Engineering, Corp. develops and sells new natural gas engines, as well as proprietary diesel-to-natural gas conversion systems.
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