STWA, Inc. and Verdantec Technologies Form Joint Alliance
Verdantec Targets Efficiency Goals of 10%-15% Fuel Savings and 25%-30% Emissions Reduction for the Diesel Truck Market
SANTA BARBARA, CA--(Marketwire - November 23, 2010) - STWA, Inc. (
The two companies have been working together for several months in Morgan Hill at the STWA facility, a site that was set up to test and develop fuel savings equipment. The result has been a major offset to the STWA facility overhead, and a material reduction in the CAP-EX needed for Verdantec. The companies have now determined how they will work together to develop and incorporate each other's technology to increase efficiencies for diesel trucks, a market facing federal regulation, presenting a major economic opportunity for both companies.
Advanced Diesel Technology "ADT" is the joint fuel savings project from STWA and Verdantec for the development of products to increase efficiency for commercial diesel trucks. Under the joint alliance, STWA's technology will be incorporated into Verdantec's pre-packaged fuel efficiency solutions for diesel fleets. The suite will consist of STWA's ELEKTRA™ unit, one of Verdantec's environmentally-oriented fuel conditioners and Verdantec's automated delivery systems. According to a Verdantec principal, Verdantec expects the "ADT" project to generate a 15% fuel savings and a 25-30% reduction in diesel fuel emissions, supported by EPA certification.
"This agreement marks an important, yet quiet milestone that has been in play for the past six months," said Cecil Bond Kyte, Chairman and CEO of STWA, Inc. "Our relationship with Verdantec has reduced the fixed asset carrying costs of our R&D facility by 60% and has helped Verdantec by limiting its upfront cap-ex requirements. Additionally, this alliance can open potential immediate and long-term revenue streams in Q1 and Q2 2011 as we pursue our go to market plans."
Mr. Kyte concluded, "Verdantec has been and continues to be a great team player, not only in their ability to open new doors within the trucking industry and to other cutting-edge pipeline technologies, but through their pending products and cooperative participation in ongoing testing at the STWA Labs. We see this milestone with Verdantec as a mutually-beneficial opportunity and are excited by the prospects for other potential joint opportunities."
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STWA, Inc. (
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Verdantec is a new California privately-held, developmental stage company that is part of Silicon Valley's Clean Tech Initiative. Verdantec was formed to focus on developing solutions for improving fuel efficiencies for the transportation, energy and related industries. Verdantec is working with other strategic partners that have unique technologies that are addressing the same challenges. Current programs include improving the effectiveness of diesel engines by increasing fuel utilization, reducing emissions and optimizing delivery systems. Verdantec is also working on test programs to help the commercial trucking industry meet Federal and State emission standards, and is investigating methods of improving crude oil transportation while providing remote power requirements. Verdantec expects to generate initial revenues in the first half of 2011.
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