Quantum Awarded $8.4 Million Purchase Order for Natural Gas Virtual Pipeline Trailers With $13 Million Option for Upgrades and Additional Trailers
LAKE FOREST, Calif., Feb. 10, 2016 (GLOBE NEWSWIRE) -- Quantum Fuel Systems Technologies Worldwide, Inc. (“Quantum” or the “Company”) (NASDAQ:QTWW), a global leader in natural gas storage and delivery systems, integration and vehicle system technologies, today announced receipt of a purchase order from Xpress Natural Gas LLC (“XNG”) for the delivery of 15 Q-VP650™ virtual pipeline trailers with delivery dates expected to start in the second half of 2016 following the Company’s receipt of regulatory approval for the Q-VP650 trailer. The order includes a customer option for 20 additional trailers and system upgrades which, if exercised, would have delivery dates starting in 2017. The trailers will be used to supply natural gas to customers throughout North America that lack access to or capacity on existing pipelines. Quantum’s virtual pipeline solution offers higher capacity and storage at pressurizations above what is currently available in the marketplace making the Q-VP650 an innovative and industry leading technology.
Quantum’s, Q-VP650 is mounted in a 45’ hi-cube shipping container and has been designed for use on over-the-road trailer and sea applications. The trailers have been integrated with the highest capacity Q-Lite® storage containers available in the industry, delivering approximately 650,000 standard cubic feet of storage when utilized at 5000 psi system levels. Short to medium distance shipping of CNG is more cost effective than shipping LNG and many other fuels. Products such as Quantum’s Q-VP650 can open up a broader group of both domestic and international industrial users of low cost natural gas.
“We are excited about this very significant virtual pipeline trailer order and to be working with XNG, one of the premier companies in this space. Our trailer offers higher capacity than any other trailer in the market today and is a testament to our ability to engineer the future of CNG storage,” said Brian Olson, President and CEO of Quantum. “We believe there are far-reaching opportunities for virtual pipeline distribution of compressed natural gas. Industries and gas-fired power plants need very large quantities of natural gas to operate and the demand for natural gas is growing and will not be met with traditional pipelines alone,” concluded Mr. Olson.
“The engineering design and high capacity storage of Quantum’s new virtual pipeline trailer will allow us to substantially improve our transportation efficiencies in delivering CNG to our customers,” said John Nahill, CEO of XNG. “We are excited to be working with Quantum and look to their technology to help our company continue to find innovative ways to meet the growing need and demand for natural gas across the United States and Canada.”
The order is subject to cancellation and/or price reduction at the option of XNG if the Company fails to obtain the requisite regulatory approval for the Q-VP650 trailer by August 1, 2016.
Quantum pioneered Type IV composite technology to achieve the highest storage efficiency and capacity of its CNG tanks and complete fuel systems. Quantum’s cylinders are now being offered in 30-inch diameter configurations enabling efficient and cost effective storage solutions. Quantum's, Q-VP650 trailer contains Quantum's proprietary, ultra-light proprietary Q-Lite® CNG storage cylinders which allow lighter weight structures while still meeting critical shock and vibration requirements. The Q-VP650 is capable of storing gas at pressures up to 5000 psi which enables approximately 20% more fuel capacity compared to standard 3600 psi systems.
About Quantum: 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.
About Xpress Natural Gas LLC (“XNG”): Founded in 2011, Xpress Natural Gas (XNG) is the industry leader in rapid and reliable delivery of compressed natural gas (CNG) and liquefied natural gas (LNG) to customers throughout the United States and Eastern Canada through their network of virtual pipelines. Through its growing network of virtual pipelines, XNG provides customized, turnkey solutions that allow industrial and commercial enterprises, municipalities and natural gas utilities to improve the reliability of their fuel supply, achieve lower energy costs and reduce their environmental impact. For more information about Xpress Natural Gas, visit www.xng.com.
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 Company’s ability to timely receive a special permit from the U.S. Department of Transportation for the Q-VP650 trailer and the growth of the CNG virtual pipeline market and acceptance of the Company’s product. 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:
Quantum Investor Relations Phone: 949-399-4555 Email: firstname.lastname@example.org