Friday, March 21, 2008

LNG Engines

I clipped this material from a financial newsletter. The company that he is touting is surely Westport Innovations Inc. The bottom line is that these folks are able to modify an engine design now in service into a LNG fueled system. Reading the material quickly shows both the compelling benefits of the system and the fact that the promoters have been able to cause specifications only they can meet to be written into law in California.

The conversion will therefore be very swift. We will be saying goodbye to the diesel engine in transportation over the next decade, just as we once saw off the old gasoline one cylinder engine known as the one banger. I saw the last of those on a riverboat in Borneo that was straight out of the African Queen. On that occasion, we three white guys, six foot tall of course, were walking clichés. I fondly recalled been cast as Teddy Kennedy, while my associates were cast as Douglas MacArthur and Spiro Agnew. It was rather funny to witness first hand the power of television.

I chopped extraneous parts of the article out, but it is from Energy and Capital if you wish to read the whole article or even subscribe.

This likely heralds a rethinking of the LNG industry. A lot will need to be imported and it may become desirous to devote effort to sustaining its supply by not wasting it, when alternate systems are available.

The truth is that natural gas is our most efficient and cleanest single fuel. It has spoiled us and no one wants to go back to whatever we used before. When it becomes part of the transportation industry, we will be spoiled some more. It is so good that we need to husband our resource jealousy so that it may be available for centuries.

Dear reader,

Jeff Siegel and I recently traveled 2,564 miles to investigate an opportunity that Jeff calls "Clean-Air Cash-Outs."

"Clean-Air Cash-Outs" are moneymaking opportunities that arise when state governments pass laws forcing energy companies to implement clean air technologies like wind or solar. When a law is about to be passed or is recently enacted, Jeff heads to that state, and talks to business leaders and private investors to find out who stands to make a lot of money.

In our most recent visit, Jeff discovered that the Port of Long Beach and the Port of Los Angeles are implementing a $1.6 billion "Clean-Air Cash Out." One small company - whose stock trades for less than $3 and is backed by a billionaire — stands to make a fortune for early investors.

It's all part of a little-known but lucrative trend I'm calling "California's Clean-Air Cash-Outs."

In short, "Clean-Air Cash-Outs" become available to you as America's largest industries are forced to install certain technologies to meet our growing clean-air laws.

But unlike adopting any "green" technology, giant corporations are using Clean-Air Cash-Outs to save hundreds of millions of dollars a year in operating costs.

  • Wal-Mart, for example, is looking into the latest Cash-Out because they could save over $236 million every year!

  • The ports of Long Beach and Los Angeles already committed to this latest Cash-Out and will soon be saving more than $335 million a year.

It's this rare win-win situation that has companies flocking to the Cash-Outs. And it's rapidly making a small group of Americans filthy rich.

And it's easy to see why...

Best part is...because of how these Cash-Outs are designed, you don't need a lot of money to start with. You don't even need to live in or near the state of California either. All you need to know is how to get started.

And as you'll see, they're hardly few and far between. In fact...

California's Clean-Air Cash-Outs Are Paying Investors All of the Time...All Across the Country

Imagine for a moment that, while scores of corporations and energy companies are searching to meet these restrictions and improve their image, you are one of the few investors in the nation who know exactly where they're starting to turn.

You could collect an absolute killing in market gains!

That's because shares of these Cash-Outs are so small, just one major corportaion or energy company placing an order could launch their price 20%, 30%...even 300% in a very short time as orders for their specific technology are fulfilled.

And since we uncovered the hidden pattern of California's Clean-Air Cash-Outs, that's exactly what we've been showing investors like you to make. For example...

This past December, we uncovered a tiny outfit that's perfecting electricity generated through ocean waves. Just days after their prototype went in the water, shareholders collected a Cash-Out of 126%.

It was generated from a law that requires the two largest shipping ports in the United States, the Port of Long Beach (POLB) and the Port of Los Angeles (POLA), to drastically reduce pollution.

Within the next three years, these two ports must:

  • Achieve a 47% decrease in diesel particulate matter (PM) emissions from port-related activity (shipping AND trucking).
  • Cut smog-forming nitrogen oxide (NOx) by 45%.
  • Achieve a 52% reduction of sulfur oxides (Sox).

These cuts seem outrageous for even an Amish village. Yet somehow, this drastic reduction is required to take place at the fifth-busiest seaport in the entire world!

(image)

This is an area where more than 16,800 Class-8 tractor trailers are the only machines strong enough to transport the heavy containers to their destination. And they transport a lot of them.

In fact, when combined, these two ports move over $260 billion worth of traded goods a year - with an expected $1.3 trillion worth by 2025.

That's a 400% increase in business in the near-future...and this approved new law expects to cut emissions at today's level by almost 50%!

At first, it didn't make any sense... Especially when you consider that almost all of the vehicles in and working for the ports run on filthy diesel engines.

In fact, these goals were so extreme that without a detailed course of action already mapped out, it wouldn't last a second on the voting floor.

Of course, when this opportunity first crossed our table a year ago in Baltimore, we knew, with cuts this bold, ethanol and bio-diesel wouldn't come close. These guys had to have something revolutionary up their sleeve for these new requirements to have passed.

We also knew that whatever they found, considering the enormous size of the project, was guaranteed to create what could be the largest Clean-Air Cash-Out yet...

And with even more goods expected to travel through the ports over the coming years, the situation seemed helpless.

That is until this latest Clean-Air Cash-Out stepped forward with a revolutionary invention.

They knew the situation. And unlike other companies working with alternatives to oil, this company attacked the issue from the source - the engine.

After years of research, testing and trial and error, they designed what could be the most advanced, efficient engine on the planet - powered by Liquid Natural Gas (LNG).

It's so revolutionary that it was recently awarded with the 2007 Industry Innovation Award for alternative fuel trucks!

(image)

While their engine and fuel source is no "renewable" energy, the much cheaper fuel and cleaner emissions proved to be the best stop-gap available that could handle the heavy workload, wear and mileage required by the ports and the drivers.

Plus, there's already several LNG fueling stations in the area... over 40 strategically in place throughout the state... with many more planned!

Even better is that this engine could be swapped with existing diesel truck engines, already in service.

The company's demonstration of their new engine worked perfectly.

But as promising as they were, this company's engine was designed to replace current diesel engines. And that meant that they would also have to win the hearts of more than 16,800 truck drivers and union officials before any mass order would ever take place.

This Revolutionary Engine Could Save Truck Drivers and Companies Over $353.8 Million Per Year!

It could have been a deal-breaker.

Even though this engine's emission scores exceeded the strict requirements, the toughest critics and true gate-keepers to letting this law successfully pass are the truck drivers and unions.

If they were ignored in the process and forced to retro-fit their current trucks or order all new ones without their blessing, all goods would cease moving. The streets in the port areas would be filled with picket signs.

Fortunately for the government and the tiny company that created this engine (and our latest Clean-Air Cash-Out), the proposal faced little resistance...especially once they realized how much money the companies would save.

You see, as I write this, diesel fuel in the port areas of California is already $3.49 a gallon and steadily on the rise.

With the skyrocketing costs of fuel set to go even higher in the near future, the truckers were already desperately looking for ways to save on their costs.

For them, even a drop of $0.05 a gallon would save each truck, traveling 80,000 miles per year, over $4,000.

But this engine proved even better. Once retro-fitted to a current semi, the new engine could save over $21,000 a year in fuel costs!

And with more than 16,800 of them servicing the port area, companies and drivers (depending on how the fuel arrangement is met) are looking at a total savings of more than $353.8 million per year!

(image)

With that kind of money staying in their pockets and government funding in place for switching over, this plan passed with flying colors. That's why...

A $1.6 Billion Truck Superfund was Awarded to Retro-fit All Port Trucks Made After 2007 with this New Engine and Purchase Brand New Ones for Earlier Models

The news was announced on January 24th of this year.

I'll admit that while I fully expected a multitude of funding for these vehicles, I had no idea that there would be a superfund to pay for an entire fleet!

$1.6 billion - even at a cost of $144k per new truck - almost covers the entire cost for re-outfitting the ports' 16,800 trucks.

Luckily, their design is the only one good enough to win the superfund's approval.