ST. PAUL, Minn. and OKLAHOMA CITY — 3M and Chesapeake Energy Corp. Feb. 22 announced an agreement to collaborate in designing, manufacturing and marketing a broad portfolio of compressed natural gas (CNG) tanks for use in all sectors of the U. S. transportation market.
Currently the fuel tank on a CNG vehicle is its most expensive single component. The new CNG tanks developed through the 3M and Chesapeake partnership will reduce costs while increasing performance, spokesmen stated. Less expensive tanks will enable greater market adoption of CNG as an alternative automotive fuel source, they added.
3M’s CNG tank solution combines the company’s proprietary liner advancements, thermoplastic materials, barrier films and coatings and damage-resistant films to transform the pressure vessel industry.
These CNG tanks that are 10 to 20 percent lighter with 10 to 20 percent greater capacity, all at a lower cost than standard vessels, said the two companies.
“3M believes in the potential of natural gas, and this agreement illustrates our commitment to the industry,” said George Buckley, chairman, president and CEO of 3M. “We are excited about this collaboration to speed the development and adoption of natural gas-powered vehicles.”
“This partnership brings together two leading companies from different sectors, both committed to advancing the natural gas transportation fuel market,” said Aubrey K. McClendon, Chesapeake’s CEO. “We applaud 3M for recognizing the future of natural gas as a low-cost, cleaner alternative to gasoline, and for creating innovative tank technology that will make natural gas vehicles more affordable and accessible to fleets and individual consumers nationwide. Our country needs a solution to break the foreign stranglehold on our fuels market, and today’s announcement is another step to transition our nation away from costly imports.”
Chesapeake has pledged an initial $10 million toward design and certification services, market development support and a commitment to use the new tanks for its corporate fleet conversion to CNG. The company’s investment will be provided by Chesapeake NG Ventures Corporation (CNGV), established in 2011 to identify and invest in companies and technologies that will replace the use of gasoline and diesel derived primarily from foreign oil. CNGV has committed $1 billion over the next 10 years to help fund various initiatives to increase demand for natural gas, including investments totaling $300 million in Clean Energy Fuels Corp. (NYSE:CLNE) and privately-held Sundrop Fuels Inc.
3M has engaged Hypercomp Engineering Inc. of Utah for the design and certification of tanks. 3M will manufacture the tanks and focus its capital on all future operations and production. 3M expects these tanks to be available for sale during the fourth quarter of 2012.
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