Sunday, February 1, 2015

The Evolution of Diesel Engines Just Took Another Step Forward (CDTI, HPTG, CMI)

Look out Clean Diesel Technologies, Inc. (NASDAQ:CDTI), and Cummins Inc. (NYSE:CMI), you may want to take notice too. Little HydroPhi Technologies Group, Inc. (OTCMKTS:HPTG) is about to make a big splash in your pool, which could make life very difficult and much easier (respectively) for the two of you. How's that? In simplest terms, all signs point to HydroPhi Technologies' diesel efficiency working quite well, saving those who use it money, while simultaneously saving the environment.

For those not familiar with it - and that may well been most people reading this commentary right now - HydroPhi Technologies Group is the brains and brawn behind a piece of hardware called the HydroPlant. About the size of the breadbox, a HydroPlant has turned an old-but-out-of-reach idea into a reality.... the injection of hydrogen into the airflow of a diesel engine. By so doing, a diesel engine's efficiency is improved, and greenhouse gas emissions are lowered. Problem: Where does one get a supply of hydrogen gas to inject into the airflow of a diesel engine? HPTG has solved the problem... water. The HydroPlant technology can split water molecules into its two atoms - hydrogen and oxygen - and force the two gases into the combustion chamber to create 20% better fuel efficiency and 70% cleaner exhaust. The installation of the HydroPlant is relatively simple, and the only "fuel" it needs is readily available water.

Almost needless to say, it's something a company like Clean Diesel Technologies should view as competition, while a name like Cummins should be excited about, and perhaps even downright support. See, Clean Diesel Technologies makes a somewhat-competing technology (though the two could be complementary as well), while Cummins - maker of diesel engines - has found it challenging to maintain demand in a world that's increasingly interested in electric cars and green-friendly automobiles, which includes increasingly-efficient gasoline-powered vehicles. By putting a HydroPlant device on board wherever a Cummins engine is installed, diesel power doesn't look like a bad alternative at all any longer. 

So what did HydroPhi Technologies Group "do" that should be turning heads this morning? It was in today's press release, although it wasn't the crux of the release. The purpose of today's news was to announce that a second operator of transit buses in Mexico was going to install HydroPlants on two of their buses as something of a test-drive; clearly they're interested. The more compelling part of the press release was the comment about the first organization that put the HydroPhi Technologies Group to the test by installing them on four transit buses. As it turns out, those four buses did indeed burn 20% less fuel and emitted 70% less greenhouse gases. As a result of the trial, that operator placed a large-scale order of HydroPlants for at least part of its fleet of 2700 buses.

In other words, HPTG just made its first sale. It certainly won't be its last sale, however. With a global market of hundreds of thousands of public transit buses in the world, in addition to a similar number of tractor trailer rigs, that first sale barely even scratches the surface. The first sale does, however, fully legitimize this young company.

For more on HydroPhi Technologies Group, visit the company's website here.

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