Quantum Enters into $2.63 Million Development Agreement for Production Intent Innovative Natural Gas Storage and Fuel System Development Development Agreement Provides for Follow-On Exclusive Supply Relationship
LAKE FOREST, Calif., May 2, 2013 /PRNewswire/ -- Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ: QTWW), a global leader in natural gas storage systems, integration and vehicle system technologies, today announced that it recently entered into a Master Development Agreement ("Agreement") with ZHRO™ Solutions, LLC ("ZHRO"), based in Chandler, Arizona, to develop fully-integrated compressed natural gas storage and fuel delivery systems (the "Fuel System") 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 revolutionary 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 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 are excited to partner with ZHRO Solution's enthusiastic and creative management team and pleased to offer our most advanced storage systems to form a winning combination with ZHRO Solution's breakthrough fuel injection technology and innovative financial and marketing models," said Brian Olson, President and CEO of Quantum. "We believe our partnership with ZHRO could be a game changer for accelerating adoption of natural gas systems by aftermarket fleets."
"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.
Quantum Fuel Systems Technologies Worldwide, Inc. is a leader in the innovation, development and production of natural gas fuel storage systems and the integration of vehicle system technologies including engine and vehicle control systems and drivetrains. Quantum produces one of the most innovative, advanced, and light-weight compressed natural gas storage tanks in the world and supplies these tanks, in addition to fully-integrated natural gas storage systems, to truck and automotive OEMs and aftermarket and OEM truck integrators. Quantum provides low emission and fast-to-market solutions to support the integration and production of natural gas fuel and storage systems, hybrid, fuel cell, and specialty vehicles, as well as modular, transportable hydrogen refueling stations. Quantum is headquartered in Lake Forest, California, and has operations and affiliations in the United States, Canada, and India.
ZHRO Solutions, LLC is an innovative Clean-Tech company headquartered in Chandler, AZ that is focused on developing and commercializing proprietary advanced technology for use in the conversion of heavy duty diesel trucks to natural gas.
Forward Looking Statements:
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this report, other than those that are historical, are forward-looking statements and can generally be identified by words such as "may," "could," "will," "should," "assume," "expect," "anticipate," "plan," "intend," "believe," "predict," "estimate," "forecast," "outlook," "potential," or "continue," or the negative of these terms, and other comparable terminology. Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements. Risk factors include the successful completion and development of the CNG fuel system by Quantum, the successful validation and commercialization of injection systems by ZHRO, market acceptance of the developed CNG fuel system and the continued cost-effectiveness of natural gas fuel. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.
More information about the products and services of Quantum can be found at http://www.qtww.com/ or you may contact:
Brion D. Tanous
CleanTech IR, Inc.
©2013 Quantum Fuel Systems Technologies Worldwide, Inc.
Advanced Technology Center, 25242 Arctic Ocean Drive, Lake Forest, CA 92630
Phone 949-399-4500 Fax 949-399-4600
SOURCE Quantum Fuel Systems Technologies Worldwide, Inc.