Quantum enters into $2.63M development agreement for production-intent natural gas storage and fuel systems for medium- and heavy-duty conversions
Quantum Fuel Systems Technologies Worldwide, Inc. recently entered into a Master Development Agreement with ZHRO Solutions, LLC 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 high-capacity ultra-lightweight Q-Lite natural gas vehicle storage systems with ZHRO’s natural gas injection/engine conversion system.
The intent 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 CNG storage tanks along with other fuel delivery components.
ZHRO has developed a financial and marketing model to accelerate the commercial launch of their breakthrough technology and has already contracted with a number of North American distributors for sales and installation of its fuel injector/engine conversion system, the company says.