Quantum Fuel Systems Technologies Worldwide, Inc., developer and producer of natural gas storage systems, integration and vehicle system technologies, recently entered into a Master Development Agreement with ZHRO™ Solutions, LLC (ZHRO), based in Chandler, Arizona, to develop fully-integrated compressed natural gas storage and fuel delivery systems for robust and cost-effective aftermarket conversion of medium and heavy duty diesel fleets to run on natural gas.
Under this Agreement, which provided for an advanced payment of $1.0 million to Quantum to initiate activities under a compressed timeline, Quantum will engineer and develop fuel delivery modules and integrate Quantum’s industry-leading high capacity ultra-lightweight Q-Lite™ natural gas vehicle storage systems with ZHRO’s natural gas injection/engine conversion system.
The intent of this Agreement is to develop the Fuel System in an expedited manner and, subject to certain conditions set forth in the Agreement, for Quantum to become ZHRO’s exclusive production supplier of the fuel system components which include Quantum’s Compressed Natural Gas (CNG) storage tanks along with other fuel delivery components.
ZHRO has developed an innovative financial and marketing model to accelerate the commercial launch of their breakthrough technology and has already contracted with a significant number of North American distributor’s for sales and installation of ZHRO’s fuel injector/engine conversion system.
“We believe our partnership with ZHRO could be a game changer for accelerating adoption of natural gas systems by aftermarket fleets,” said Brian Olson, President and CEO of Quantum.
“Conditions are right for a large number of high mileage fleets to soon begin converting to natural gas, as innovative refueling solutions and validated high performance conversion kits become available, and financing and servicing infrastructure are put into place,” said John Madrigal, COO of ZHRO Solutions. “Quantum’s range-enhancing natural gas storage system is a perfect complement to ZHRO’s planned innovative high pressure natural gas injection system.”
Under this strategic development program, Quantum and ZHRO will develop a cost-effective, complete natural gas aftermarket system solution for the nation’s estimated 4 million medium and heavy duty trucks currently running on expensive diesel fuel, enabling fleet operators to benefit from lower operating costs and reduction in exhaust particulate matter and emissions, made possible by a dedicated conversion to natural gas from diesel.
(Source: Quantum Fuel Technologies, Inc.)