OKLAHOMA CITY -- Chesapeake Energy and 3M this week announced an agreement to collaborate in designing, manufacturing and marketing a broad portfolio of compressed natural gas (CNG) tanks for use in the United States transportation market.
The fuel tank on a CNG vehicle is its most expensive single component, the companies said in announcing the venture. The new CNG tanks developed through the partnership will reduce costs while increasing performance, which will enable greater market adoption of CNG as an alternative automotive fuel source.
3M's CNG tank solution combines the company's proprietary liner advancements, thermoplastic materials, barrier films and coatings, and damage-resistant films to transform the pressure vessel industry. Using nanoparticle-enhanced resin technology, 3M will create CNG tanks that are lighter with 10% to 20% greater capacity, all at a lower cost than standard vessels.
"3M believes in the potential of natural gas, and this agreement illustrates our commitment to the industry," said George Buckley, CEO of 3M. "We are excited about this collaboration to speed the development and adoption of natural gas-powered vehicles."
Chesapeake has pledged an initial $10 million toward design and certification services, market development support and a commitment to use the new tanks for its corporate fleet conversion to CNG. The company's investment will be provided by Chesapeake NG Ventures Corporation (CNGV), established in 2011 to identify and invest in companies and technologies that will replace the use of gasoline and diesel derived primarily from foreign oil. CNGV has committed $1 billion over the next 10 years to help fund various initiatives to increase demand for natural gas.
"This partnership brings together two leading companies from different sectors, both committed to advancing the natural gas transportation fuel market," said Aubrey K. McClendon, Chesapeake's CEO. "We applaud 3M for recognizing the future of natural gas as a low-cost, cleaner alternative to gasoline, and for creating innovative tank technology that will make natural gas vehicles more affordable and accessible to fleets and individual consumers nationwide. Our country needs a solution to break the foreign stranglehold on our fuels market, and today's announcement is another step to transition our nation away from costly imports."
Published by The Business Journal, Youngstown, Ohio.