Partnership signals growing strength of natural gas transportation
fuel market
ST. PAUL, Minn. & OKLAHOMA CITY--(BUSINESS WIRE)--Feb. 21, 2012--
3M (NYSE:MMM) and Chesapeake Energy Corporation (NYSE:CHK) today
announced an agreement to collaborate in designing, manufacturing and
marketing a broad portfolio of compressed natural gas (CNG) tanks for
use in all sectors of the United States transportation market. Currently
the fuel tank on a CNG vehicle is its most expensive single component.
The new CNG tanks developed through the 3M and Chesapeake partnership
will reduce costs while increasing performance. Less expensive tanks
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™
Matrix Resin for Pressure Vessels, 3M will create CNG tanks that are
10 to 20 percent lighter with 10 to 20 percent greater capacity, all at
a lower cost than standard vessels. In addition to these benefits, the
3M technology produces safer and more durable tanks than those currently
on the market. This tank innovation builds on 3M’s proven history of
developing and introducing pioneering technologies to the market.
“3M believes in the potential of natural gas, and this agreement
illustrates our commitment to the industry,” said George Buckley,
Chairman, President and Chief Executive Officer of 3M. “We are excited
about this collaboration to speed the development and adoption of
natural gas-powered vehicles.”
Increased political support and private investment have made natural gas
a viable automotive fuel alternative with large growth potential. With
more than a 100-year supply of natural gas in the United States and an
average price per gasoline gallon equivalent of $1.00 to $2.00, the fuel
is plentiful, affordable and domestic. The fuel also burns more cleanly
than gasoline, cutting greenhouse gas emissions by 30 percent and
particulate matter by 95 percent.
“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 Chief Executive Officer.
“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.”
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, including investments totaling $300 million in
Clean Energy Fuels Corp. (NYSE:CLNE) and privately-held Sundrop Fuels,
Inc.
3M has engaged Hypercomp Engineering, Inc. of Utah for the design and
certification of tanks. 3M will manufacture the tanks and focus its
capital on all future operations and production. 3M expects these tanks
to be available for sale during the fourth quarter of 2012.
For more information about the companies and technologies involved,
visit http://www.3M.com/AdvancedComposites
or www.chk.com.
3M is a trademark of 3M Company.
About 3M
3M captures the spark of new ideas and transforms
them into thousands of ingenious products. Our culture of creative
collaboration inspires a never-ending stream of powerful technologies
that make life better. 3M is the innovation company that never stops
inventing. With $30 billion in sales, 3M employs 84,000 people worldwide
and has operations in more than 65 countries. For more information,
visit www.3M.com
or follow @3MNews on Twitter.
About Chesapeake Energy Corporation
Chesapeake Energy
Corporation (NYSE:CHK) is the second-largest producer of natural gas, a
Top 15 producer of oil and natural gas liquids and the most active
driller of new wells in the U.S. Headquartered in Oklahoma City, the
company's operations are focused on discovering and developing
unconventional natural gas and oil fields onshore in the U.S. Chesapeake
owns leading positions in the Barnett, Haynesville, Bossier, Marcellus
and Pearsall natural gas shale plays and in the Granite Wash, Cleveland,
Tonkawa, Mississippi Lime, Bone Spring, Avalon, Wolfcamp, Wolfberry,
Eagle Ford, Niobrara, Three Forks/Bakken and Utica unconventional
liquids plays. The company has also vertically integrated its operations
and owns substantial midstream, compression, drilling, trucking,
pressure pumping and other oilfield service assets directly and
indirectly through its subsidiaries Chesapeake Midstream Development,
L.P. and Chesapeake Oilfield Services, L.L.C. and its affiliate
Chesapeake Midstream Partners, L.P. (NYSE:CHKM) Further information is
available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.
Source: 3M/Chesapeake Energy Corporation
For 3M:
Michael Gugala
Karwoski & Courage Public Relations
612-342-9604
m.gugala@creativepr.com
or
Chesapeake
Energy Corporation
Lindsay McIntyre
Media Relations Coordinator
405-935-8486
lindsay.mcintyre@chk.com