US-based gas company Chesapeake’s corporate venturing unit has invested $10m in a collaboration with US-based industrial conglomerate 3M to design, manufacture and market compressed natural gas tanks for transport.
The investment made by Chesapeake yesterday is intended to help the market development of the 3M-designed tanks and Chesapeake has committed to use the tanks for its corporate fleet conversion to compressed natural gas.
The deal is the latest by Chesapeake NG Ventures Corporation, a corporate venturing unit set up by the natural gas company, to which it has committed to invest $1bn over the next 10 years. This fund last year invested $300m in US-based natural gas transportation companies Clean Energy Fuels Corp and Sundrop Fuels.
The pair of companies said in a statement: "Currently the fuel tank on a compressed natural gase vehicle is its most expensive single component. The new compressed natural gas tanks developed through the 3M and Chesapeake partnership will reduce costs while increasing performance. Less expensive tanks will enable greater market adoption of compressed natural gas as an alternative automotive fuel source."
Aubrey McClendon, Chesapeake’s chief executive, said: "This partnership brings together two leading companies from different sectors, both committed to advancing the natural gas transportation fuel market. 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."
George Buckley, executive chairman of 3M, said: "3M believes in the potential of natural gas, and this agreement illustrates our commitment to the industry. We are excited about this collaboration to speed the development and adoption of natural gas-powered vehicles."