DiGas has developed and is deploying dual-fuel system (DFS) that enable locomotive operator companies to run their locomotives in dual fuel mode substituting majority of diesel fuel consumption with natural gas or biomethane which results in 30-40% cut in fuel costs, diesel-like operation, compliance with new emission standards and enhancement of environmental commitments.
The unique proposition of our system is the highest on the market (80%) diesel fuel substitution rate with natural gas even on the smallest engine loads. Contrary to any other competitor solutions DiGas technology allows for meaningful natural gas injection from the 1st notch of locomotive engine operation compared to 3rd notch natural gas injection start for other competing technologies. It provides an economically viable solution for shunter locomotives that majority of their time are operating in low engine loads however represents 40% of all locomotive fleet worldwide. More than that, we have designed our DFS in the way that on 95% it consists from reliable, proven and currently available mass produced components. Therefore, by utilizing our proprietary DFS elements and tailoring DFS to vast majority of shunter diesel locomotives we are able to retrofit the locomotives in the most cost effective, time-effective, reliable, service free and scalable manner. This allows for massive shift for European locomotive industry, enabling rail operators to capitalize on cheap, clean and abundant natural gas fuel and provide much more competitive service saving funds that be used for other investment objectives such as acquisition of new environmentally more friendly diesel locomotives that comply with most recent stricter emission standards. In addition to economical savings for operators we expect that annual social impact of conversion to DFS in CO2 and NOx decreased savings will amount to EUR 17.6 thousand per converted locomotive and based on our projections with an aggregated impact of EUR 21.5 million (20`219 tons less emissions) by 2024.
Developed over more than 5 years and tested on numerous engines, the core proprietary technology is based on self-adaptive algorithms, pre-calculated models and real-time comparative analysis to dynamically changeable current state operation model. Adopted to locomotive engine and successfully tested on engine test cell the technology and accumulated experience provides the unique advantages for us and our customers. With an objective to roll out finished and scalable, certified, applied to numerous types of locomotives and ready to be mass produced DFS by 2019 DiGas is now is in the process of setting up a demonstration project with Latvian Railway company which will prove the system in its actual operational environment by Q3 of 2017.
The objective of Feasibility Study was to verify the market size, assess technical feasibility of DiGas DFS, identify and contact all locomotive operators that will be interested in our product in European region with an objective to initiate pilot conversion of their locomotives as well as locomotive maintenance and repair plants within geographical reach of those operators that will take part in locomotive modernization installing DFS. These contacts will be very beneficial during our commercialisation stage and will provide us with credibility of actual application of DFS in daily operations. Other objectives include: gain understanding of project risks and potentials of product commercialization; evaluate in detail potential technical, commercial, certification, legislative and economic issues.
