Hybrid Fuel Systems, a provider of CNG and LPG conversion system for heavy- and medium-duty diesel engines, intends to acquire DRV Energy, a small-volume manufacturer of bi-fuel and dedicated natural gas and propane turnkey conversion systems for light-duty vehicles.
The result of the acquisition will be a larger company that can offer a full range of systems to convert light-, medium- and heavy-duty engines to compressed natural gas or propane.
DRV offers a fuel filling station technology as well as a set of EPA-certified conversion systems for light-duty natural gas and propane vehicles. The DRV technology features one of the only port-sequential fuel injection systems certified by the EPA.
Hybrid Fuel Systems’s initial application is a snap-and-play Engine Control Unit (ECU) and injection system to convert medium and heavy-duty diesel engines to operate in a dual-fuel 70% natural gas and 30% diesel mode.
In May, Hybrid Fuel Systems closed a US$6 million deal for the sale of its conversions systems in China.
As in the biofuel producer area, we’ll see more of the roll-up and consolidation of smaller companies in sectors such as conversions and retrofits as the market begins to accelerate.