September 8, 2011
Virginia Company Obtains Funding for Fuel-Saving Technology
Marz Industries will use CIT and investor funding to validate its technology with Virginia fleets
Ashland, VA – A Richmond-area company has just received funding that will allow it to take a final step toward commercialization of a technology which it believes will have a major impact on the trucking industry. Marz Industries, which was the first company to be selected as a member of the Dominion Resources Greentech Incubator, has developed a system designed to improve fuel efficiency and reduce emissions for heavy trucks. This system (the Marz Ranger Fuel Efficiency System) uses hydrogen to enhance diesel combustion, enabling more energy to be harnessed from a given quantity of fuel.
This round of funding, which includes convertible debt from the Center for Innovative Technology (CIT) and equity from private investors, will be deployed by Marz to perform “fleet validation” testing with select Virginia trucking companies through the end of this year.
According to Marz Industries President Eddie Miller, the Marz Ranger system is designed to work with existing diesel engines. “Our system is based on sophisticated hydrogen fuel cell technology, but does not require significant engine modification. Rather, by introducing hydrogen into the combustion chamber, we are simply making the normal combustion process more efficient,” said Miller.
The implication is that, while most new engine technologies tend to be phased in slowly as new engines are manufactured, the Marz system can provide an immediate efficiency boost to trucks that are already on the road today. According to Department of Energy statistics, there were over 10 million commercial trucks registered in the US, which consumed more than 44 billion gallons of fuel in 2009 (the most recent year for which statistics are available). Said Miller, “We expect mileage gains of greater than 10 percent, and possibly higher as we optimize the system. The market potential is literally billions of gallons of fuel and tens of billions of dollars saved every year.”
Marz also emphasizes that its fuel efficiency system is “green” in several ways: (1) it promotes reduction of emissions by trucking companies through lower fuel consumption and more complete combustion of the fuel that is consumed and, (2) the Marz Ranger system uses advanced PEM (proton exchange membrane) fuel cell technology that only consumes water to produce pure hydrogen, with no by-products that could be harmful to the engine or the environment.
Marz expects to have units available for sale by the end of this year, and is performing “fleet validation” this fall. According to Miller, “We know that measurement is critical. Our validation testing involves capturing engine data to allow us to measure fuel economy before and after installation of the Ranger system, over a period of several months.” Marz has already secured a commitment from one large transportation company to be a validation partner, and expects to select one additional fleet this month.
This investment is a significant milestone for the Dominion Resources Greentech Incubator as well. Said Robert T. Skunda, President and CEO of the Virginia BioTechnology Research Park and Chairman of the Dominion Resources Greentech Incubator, “This investment by CIT and private investors is validation of Marz’ potential. They are exactly the kind of company we wanted to support when we created the Greentech Incubator - they are driving innovation in the energy sector, and through that have created an exciting business opportunity that will benefit Virginia and the national economy.”
Marz expects to raise an additional round of capital in early 2012 to support a planned business expansion to capitalize on anticipated demand. Marz’ CFO, Brent Winn, looks forward to that: “Six months from now, we will have a product in the marketplace, and happy customers. If investors think the story is promising now, it will be that much more compelling in six months.”
Virginia Company Obtains Funding for Fuel-Saving Technology
Marz Industries will use CIT and investor funding to validate its technology with Virginia fleets
Ashland, VA – A Richmond-area company has just received funding that will allow it to take a final step toward commercialization of a technology which it believes will have a major impact on the trucking industry. Marz Industries, which was the first company to be selected as a member of the Dominion Resources Greentech Incubator, has developed a system designed to improve fuel efficiency and reduce emissions for heavy trucks. This system (the Marz Ranger Fuel Efficiency System) uses hydrogen to enhance diesel combustion, enabling more energy to be harnessed from a given quantity of fuel.
This round of funding, which includes convertible debt from the Center for Innovative Technology (CIT) and equity from private investors, will be deployed by Marz to perform “fleet validation” testing with select Virginia trucking companies through the end of this year.
According to Marz Industries President Eddie Miller, the Marz Ranger system is designed to work with existing diesel engines. “Our system is based on sophisticated hydrogen fuel cell technology, but does not require significant engine modification. Rather, by introducing hydrogen into the combustion chamber, we are simply making the normal combustion process more efficient,” said Miller.
The implication is that, while most new engine technologies tend to be phased in slowly as new engines are manufactured, the Marz system can provide an immediate efficiency boost to trucks that are already on the road today. According to Department of Energy statistics, there were over 10 million commercial trucks registered in the US, which consumed more than 44 billion gallons of fuel in 2009 (the most recent year for which statistics are available). Said Miller, “We expect mileage gains of greater than 10 percent, and possibly higher as we optimize the system. The market potential is literally billions of gallons of fuel and tens of billions of dollars saved every year.”
Marz also emphasizes that its fuel efficiency system is “green” in several ways: (1) it promotes reduction of emissions by trucking companies through lower fuel consumption and more complete combustion of the fuel that is consumed and, (2) the Marz Ranger system uses advanced PEM (proton exchange membrane) fuel cell technology that only consumes water to produce pure hydrogen, with no by-products that could be harmful to the engine or the environment.
Marz expects to have units available for sale by the end of this year, and is performing “fleet validation” this fall. According to Miller, “We know that measurement is critical. Our validation testing involves capturing engine data to allow us to measure fuel economy before and after installation of the Ranger system, over a period of several months.” Marz has already secured a commitment from one large transportation company to be a validation partner, and expects to select one additional fleet this month.
This investment is a significant milestone for the Dominion Resources Greentech Incubator as well. Said Robert T. Skunda, President and CEO of the Virginia BioTechnology Research Park and Chairman of the Dominion Resources Greentech Incubator, “This investment by CIT and private investors is validation of Marz’ potential. They are exactly the kind of company we wanted to support when we created the Greentech Incubator - they are driving innovation in the energy sector, and through that have created an exciting business opportunity that will benefit Virginia and the national economy.”
Marz expects to raise an additional round of capital in early 2012 to support a planned business expansion to capitalize on anticipated demand. Marz’ CFO, Brent Winn, looks forward to that: “Six months from now, we will have a product in the marketplace, and happy customers. If investors think the story is promising now, it will be that much more compelling in six months.”
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