Fuel Systems Solutions, Inc. (FSYS)

[Democritus_of_Abdera]

Re: FSYS & Adsorbed Natural Gas Fuel Tanks...

Timothy Standke, FSYS Chief Technology Officer, in prepared remarks of Q3 CC:

IMPCO was awarded an R&D program from GM to evaluate the use of absorption technology in the CNG tank for future applications.

This R&D initiative will not impact near-term results. But, it is important for the future growth of the company.

Absorbed Natural Gas technology has the potential to make CNG automobile engines mainstream because it reduces the space and weight required for storage of cng fuel in the vehicle. The tanks can be filled and maintained at low pressure (500 psi vs the 3600 psi for current cng tanks) obviating the need for expensive compressors at fueling stations.

Absorbed Natural Gas depends upon a matrix honey-combed with nanopores. The nanopores absorb the gaseous methane resulting in a dramatic reduction in volume required to store a given quantity of methane; i.e. it increases the energy density making adsorbed natural gas comparable to gasoline.

At this point, I'm curious as to which company is supplying the absorbed natural gas technology for the FSYS/GM program. Possibilities include:

1) EnerG2, a Seattle WA based company ... uses a carbon adsorbent and is collaborating with Northwest Natural Gas Co (NYSE:NWN)

2) SRI International/BlackPak/Entegris(ATMI), a collaborative effort using a carbon adsorbant ... Entegris (Nasdaq:ENTG)

3) BASF, an affiliate of BASF SE, Ludwigshafen, Germany .... uses a metal organic framework currently being tested by Ford

4) Gas Technology Institute, a research institute located in Illinois.... evaluating different materials in a collaboration with Westport and others.

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FSYS Q3 Prepared Remarks: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=109507&eventID=5172451

ARPA Support of Basic Research (including Ford's effort): http://www.greencarcongress.com/2012/07/move-20120712.html

EnerG2: http://ngvtoday.org/2014/04/29/northwest-natural-gas-energ2-to-road-test-next-generation-absorbed-natural-gas-storage-tanks/

SRI/BlackPak: http://ngvtoday.org/2014/04/01/4-6-million-grant-for-blackpak-to-develop-a-potentially-transformative-cng-storage-tank-system/

BASF: http://www.catalysts.basf.com/p02/USWeb-Internet/catalysts/en/content/microsites/catalysts/prods-inds/energy-storage/index
http://www.fool.com/investing/general/2014/05/25/innovation-at-basf-and-ford-is-breaking-down-barri.aspx

Gas Technology Institute: http://www.gastechnology.org/news/Pages/New-NGV-Storage-Material-Technologies-to-Lower-Cost-of-Light-Duty-Vehicles.aspx