LAKE FOREST, Calif.
May 2, 2013
/PRNewswire/ -- Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ:
), 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
, 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
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
, 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
, 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.