Omnitek Engineering Enters Strategic Agreement for 13-Liter Natural Gas Engine
Omnitek Engineering Corp. says it has entered into a Securities Purchase Agreement with G.ON Global Investments SRL, a limited liability company organized under the laws of Romania. G.ON Global was established by one of the original founders of Bucharest-based G.ON SRL, an Omnitek Engineering customer who engaged Omnitek in 2018 to develop a more than 400 hp 13-liter heavy-duty natural gas engine for Class 8 truck and bus applications.
Omnitek entered into the Agreement with an investment of $640,000 at a price of $0.179 per share and an option to invest an additional $640,000 under the same terms. Additional information on the transaction is available in the company’s 8-K filing today.
G.ON SRL will assemble the natural gas trucks utilizing the 13-liter engine. Omnitek Engineering will be the exclusive OE supplier of key natural gas engine management system components required for the engine to meet the EURO 6 emissions standard.
Omnitek Engineering will have the distribution rights for Euro 6 Class 8 natural gas trucks in select countries, including United States of America, Mexico, South America, Israel, United Arab Emirates and Nigeria.
“The ability of Omnitek’s technology to achieve EURO 6 emissions certification standards, which is a competitive advantage and not easily achieved, represents an important milestone for the company. The availability of a EURO 6 heavy-duty 13-liter natural gas engine, coupled with the rapidly emerging build-out of the natural gas fueling infrastructure, should further accelerate the deployment of natural gas heavy-duty vehicles in Europe, as well as other world regions,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.
“CO2, NOx and black carbon emissions from diesel engines, potent greenhouse gas (GHG) emissions, are abated when using natural gas, and our technology offers countries around the globe a viable and proven solution to address emissions policies of the 200-nation Paris Agreement on Climate Change. In addition, the price delta between diesel and natural gas makes the utilization of natural gas engines particularly attractive to fleet operators and inquires for additional EURO 6 engine development contracts have increased following our initial announcement regarding this development project,” Funk said.