Quantum announces additional CNG tank orders; files for IPO
14 February 2014
Quantum Fuel Systems Technologies Worldwide, Inc. recently received approximately $2.0 million in additional orders for its Q-Lite CNG storage tanks. The orders are from a combination of new and existing customers widely distributed around the US and Canada. These orders reflect the continued strong growth of natural gas and set the stage for continued growth in 2014, the company said. The company also has filed for a public offering, based in large part on its expectations for growth in the use of CNG in transportation.
Quantum produces advanced, light‐weight compressed natural gas storage tanks and supplies these tanks, in addition to fully‐integrated natural gas storage systems, to truck and automotive OEMs and aftermarket and OEM truck integrators. It also integrates vehicle system technologies including engine and vehicle control systems and drivetrains.
As outlined in its prospectus for the IPO, the company intends to focus product development efforts on expanding its CNG storage and fuel systems product offering and advancing its CNG storage and fuel system solutions technologies to further improve performance, weight, and cost. Among its expectations for the market are that:
the US, state and local governments will continue to support the advancement of alternative fuel and renewable energy technologies through loans, grants and tax credits;
the price of natural gas will stay relatively low for the foreseeable future, thereby driving demand for CNG tanks and fuel systems; and
the trucking industry will continue to transition a greater percentage of their fleet vehicles to run on natural gas.
Quantum also projected that two passenger CNG vehicle platforms it is working on with original equipment manufacturers will be commercially available beginning in 2014 for one program and 2015 for the other program.
The substantial savings achieved by many of the fleets which have been testing CNG vehicles is now translating into volume orders. We expect this trend to only accelerate in 2014 as the recently introduced 11.9L engine becomes available in higher volumes.—Brian Olson, President and CEO of Quantum
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