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Dynetek Enters into Strategic Relationship with Delphi for CNG Systems in Brazil

2 November 2006

Dynetek Industries (Calgary, Canada), a provider of lightweight storage cylinders for compressed hydrogen and compressed natural gas (CNG), has signed a letter of intent with Delphi Automotive Systems Do Brazil LTDA. Delphi SA is a wholly owned subsidiary of Delphi Corp.

Dynetek and Delphi SA intend to negotiate a commercial agreement to establish an exclusive distributorship arrangement and the prospect for a manufacturing plant in Brazil. The initial phase of the project will assess the market potential for Dynetek CNG cylinders and systems in Brazil. Delphi SA plans to introduce Dynetek CNG cylinders into Brazil for bus and passenger car applications.

This relationship is an incredible opportunity for Dynetek to pursue the bus and automobile CNG markets in South America. The potential to work with Delphi’s established distribution channels and marketing presence in South America for bus and automobile after markets and Original Equipment Manufacturers (OEMs) is a logical strategic step for Dynetek to ensure the continued growth of our light-weight storage solution for the CNG marketplace.

—Robb Thompson, Dynetek’s President and CEO

Dynetek builds its DyneCell lightweight composite cylinders using a seamless thin-wall aluminum liner with a full carbon fiber overwrap. The ultra-lightweight liner technology provides high storage capacity while minimizing weight, according to the company.

Operating pressures for Dynetek’s automotive and bus CNG systems are 3,000 psi (200 bar) and 3,600 psi (250 bar). Dynetek currently designs and develops automotive CNG systems for Nissan and Mitsubishi, among others.

November 2, 2006 in Brazil, Natural Gas | Permalink | Comments (9) | TrackBack (0)

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Brazil has very little natural gas of its own. Unless the country intends to produce biogas from forestry and sugarcane waste, CNG vehicles there would be driving around on NG imported via pipelines through the Amazon from Bolivia, Venezuela and Argentina.

That doesn't mean Brazil is a bad choice of Latin America HQ for Dynetek. No other South American countries has a significant domestic oil or ethanol industry, or as large an auto industry. Argentina already has a large CNG vehicle fleet and, these suppliers may be looking for a piece of the action.

Moreover, the production of composites involves a number of nasty solvents which lead to OSHA and air quality overheads in the US. Plus, wages in Brazil are almost certainly much lower. Cynical? Perhaps, but that's how globalization operates.

Evo vs Lula? Argentines are usingmost of their natl gas for their own domestic market, esp now that they are recovering, economically. The pipe from Venezuela to Argentina is not likely to be completed under Chavez. On a lighter note, more carbon fiber products, over time, will drive down the cost for such goods.
_Perhaps they can use (and modernise collection and processing) their garbage/sewage for fuels, like CH4 (+butanol).

Easy to gasify all the sugarcane bagasse after the juice is extracted. Not hard to turn syngas into SNG. If Brazil keeps this up they would be the first country to run totally on renewables.

According to the stats at the IANGV web site, Argentina and Brasil are the #1 and #2 countries with NatGas vehicles on the road.
Argentina 1,459,236
Brazil 1,228,079
Pakistan 1,000,000
Italy 382,000

http://www.iangv.org/content/view/17/35/

From the EIA --
OGJ reported that Brazil had 11.5 trillion cubic feet (Tcf) of proven natural gas reserves in 2006. In 2004, Brazil produced 340 billion cubic feet (Bcf) of natural gas.

A lack of natural gas transportation infrastructure in the interior regions of the country has hindered exploration and production. In particular, Amazonas state contains considerable reserves that remain unexploited, especially the Urucu field, which contains Brazil’s largest onshore natural gas reserves.

Brasil's consumption is greater than domestic production. The shortfall is made up with imports from Bolivia and Argentina.

http://www.eia.doe.gov/emeu/cabs/Brazil/NaturalGas.html

From Dynetek's web site:

The core of Dynetek's technology is the DyneCell cylinder. It is the fastest filling cylinder on the market.

A type 3 composite cylinder, the DyneCell is designed to store a variety of compressed gases at high pressure, including hydrogen, natural gas and various industrial gases. Dynetek has sold thousands of DyneCell cylinders worldwide to major automotive, heavy-duty vehicle manufacturers, industrial gas, transport, and energy sectors.

The DyneCell currently has five main service pressures, 3000psi (200bar), 3600psi (250bar), 5000psi (350bar), 6500psi (450bar) and to a limited extent 10000psi (700bar).

The next big thing in brazil is the tri-fuel car. full flex + CNG.

I want a CNG/FFV hybrid. First company to make one should get a good response. Honda could do it with their Civic hybrid easily.

I was happy to watch it --
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