Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ: QTWW), a global leader in natural gas storage systems, integration and vehicle system technologies, today announced a supply and marketing alliance with GAIN® Clean Fuel, a brand of U.S. Gain, to package and offer compressed natural gas (CNG) trucks through existing dealership relationships at the same purchase price as diesel trucks. This program is offered in conjunction with and financed by a CNG fuel contract provided by GAIN® Clean Fuel where very attractive CNG fuel pricing can be fixed for up to five years. Both pricing options are designed to accelerate the pay-back period for fleets and truck operators desiring to switch from diesel to CNG.
The program would initially include a Quantum 123 DGE back-of-cab (“BOC”) system on a Kenworth 680 CNG truck and a CNG fuel contract with GAIN® Clean Fuel. The program would provide fleets and truck operators with two options for paying the incremental cost related to a CNG truck. The first option would allow the fleets and truck operators to amortize the additional cost of the CNG fuel system and CNG truck cost into a CNG fuel contract with GAIN® Clean Fuel so the operators will pay no additional upfront costs. The fleet operator would then purchase fuel from a GAIN® Clean Fuel station under a long-term fuel contract with the cost of the CNG system and the cost differential between a CNG truck and a diesel truck amortized in the CNG fuel price over the length of the fuel contract at prices as low as $1.99/gallon. Since the national average price for diesel is $2.81/DGE, this represents a substantial savings and enables the fleet to start saving money compared to a diesel truck on day one.
The second option available to the fleets and truck operators is special pricing to assist reducing the differential cost for the CNG components on the new truck. The customer would pay the incremental cost at the time of the vehicle purchase rather than having the cost amortized in the price of the CNG fuel, thus, allowing the fleet and truck operators to purchase fuel from GAIN® Clean Fuel at preferred pricing levels. In both cases, the customer can lock in a low CNG fuel price for up to five years.
The Quantum- GAIN® Clean Fuel pricing program will leverage GAIN® Clean Fuel’s network of fueling stations throughout North America. The program will initially be offered in the following areas: Aurora, Colorado; Des Moines, Iowa; Charlotte, North Carolina; Nashville, Tennessee; Dallas, Texas; Oklahoma City, Oklahoma; and Kansas City, Missouri. Additional locations will be announced later this summer.
“This program gives the fleet and truck operators the opportunity to defer paying any upfront capital requirements for fleets to convert to CNG and provides them immediate payback and on-going savings for up to 5 years. We believe this opportunity to amortize the incremental cost of a CNG truck removes a challenging hurdle for fleets moving to CNG,” said Brian Olson, President and CEO of Quantum. “We are excited to be aligned with GAIN® Clean Fuel on this revolutionary program and leverage their financial resources and natural gas industry prowess in advancing CNG adoption in this country,” concluded Mr. Olson.
“This is the first of its kind program that allows carriers of all sizes to take advantage of the benefits of CNG,” said U.S. Gain General Manger Bill Renz. “We thrilled to be announcing this partnership and look forward to helping grow the use of CNG in the transportation industry.”
