Caterpillar Forms Alliance with CleanAIR Systems to Reduce Emissions

Trading Markets.com - July 23, 2008

Caterpillar In (NYS: CAT), the world's leading manufacturer of construction and mining equipment, clean diesel and natural gas engines and gas turbines, recently selected CleanAIR Systems, Inc. of Santa Fe, New Mexico, as its strategic alliance partner for emission retrofit products. These products are installed into existing applications in order to reduce hydrocarbons, nitrogen oxides and diesel particulates.

"Caterpillar is a leader in machine and engine technologies, and we are pleased to align with another leader in the emissions retrofit industry. This is another step in our sustainability journey to position Caterpillar as a comprehensive emission solutions provider," stated Bill Springer, vice president of the Marketing & Product Support Division.

Our alliance encompasses CleanAIR's proprietary technology, custom engineering capability and flexible manufacturing of diesel particulate filters, oxidation catalysts, three-way catalysts and selective catalytic reduction catalysts. Caterpillar will provide system integration capability, engineering and marketing support, as well as assistance to enable CleanAIR to meet growing demand from Caterpillar's broad customer base."

"CleanAIR and Caterpillar are a perfect fit," said Michael Roach, President of CleanAIR Systems. "Due to our extensive product base and established performance history, Caterpillar feels our company has what it takes to work alongside them in the emissions control business. The alliance will increase our market exposure as well as introduce CleanAIR products to Caterpillar dealers around the world."

The agreement between Caterpillar and CleanAIR also allows Cat dealers to effectively meet customers' stringent air quality requirements by offering a responsive and competitive solution. The ability to sell CleanAIR's retrofit systems permits Cat dealers to offer products customized for specific applications, the latest in product technologies and direct access to dedicated product support.

The relationship between Caterpillar and CleanAIR Systems is part of a long-term strategy that combines the strengths of both companies, creating a formidable team to deliver cost-effective solutions to customers' increasingly complex emissions challenges.

Caterpillar to Help Market CleanAIR's Emissions-Control Systems

New Mexico Business Weekly - July 11-17, 2008

Santa Fe-based CleanAIR Systems, Inc. expects revenue to triple in the next 12 months, thanks to a new marketing agreement with global giant Caterpillar Inc.

The companies signed a joint vendor agreement in late June that commits Caterpillar to promote CleanAIR's emissions-control systems through Caterpillar's worldwide dealer network. Caterpillar is the leading manufacturer of construction and mining equipment, diesel and natural gas turbines. It had $45 billion in sales and revenue in 2007.

"This is a big step for us," said CleanAIR President and CEO, Michael Roach. "This alliance will easily triple our revenue in the next year. We'll need to increase our staff by more than three-fold, from 30 employees now to at least 100 within 18 months."

Roach, a ceramics engineer, created CleanAIR's ceramic-based filters with a proprietary catalytic process that uses platinum to convert particulate matter and gasses into nearly harmless emissions. The devices reduce the output of carbon monoxide, hydrocarbons and particulate matter from diesel-powered machines. They are used to retrofit stationary generators, as well as trucks and off-road vehicles, such as construction and earth-moving equipment.

CleanAIR, which formed in 1993, reported $5 million in revenue in 2006 from sales and installations of the company's patented emissions-control devices.

New confidentiality agreements prohibit CleanAIR from revealing its 2007 revenue figures, or projections for the future, Roach said. But CleanAIR will reap the lion's share of revenue from the Caterpillar agreement.

"Under the alliance, a small revenue fee goes to Caterpillar, and in return we get engineering and marketing support from them," Roach said.

Bill Springer, Caterpillar's Vice President of the marketing and support division, said the alliance will help position Caterpillar as a comprehensive emission solutions provider.

"Caterpillar is a leader in machine and engine technologies, and we are pleased to align with another leader in the emissions retrofit industry," Spring said.

Daniel Serrano, exhaust after-treatment specialist with Peterson Power Systems - Caterpillar's northern California dealer - said CleanAIR's reputation for high-quality emissions-control devices will add value to Caterpillar products.

"Out of a list of 15 to 20 suppliers, Caterpillar narrowed it down to CleanAIR," Serrano said. "That says a lot."

Tighter government restrictions on air emissions are generating a need for these types of products, Serrano added.

Under the alliance, CleanAIR immediately will start selling filters for stationary Caterpillar generators. Next year, it will start selling devices for off-road vehicles. It also will market new filter systems to reduce nitrogen oxides from Caterpillar equipment. CleanAIR recently developed the NOx-reduction devices with technology licensed from Los Alamos National Laboratory.

Caterpillar is sponsoring four educational launch events for the company's 50 dealerships nationwide, Roach said. CleanAIR presented to dealers from the West Coast in June. Events are planned for the East Coast, the Midwest and the Rocky Mountain Region in July and August. And in October, about 200 dealers will visit the CleanAIR factory in Santa Fe to learn first-hand about company products.

Caterpillar also will work with CleanAIR to develop new products, such as a one-size-fits all filter system for off-road equipment, Roach said.

"That's important because there are many varieties, makes and models of off-road equipment in any given construction site," Roach said.

CleanAIR expects to move in August from the 18,000-square-foot facility it rents to a newly built 30,000-square-foot complex in Santa Fe.

NM Firm Picked by Caterpillar to Control Emissions

CNNMoney.com - June 18, 2008

Caterpillar selects Santa Fe-based CleanAIR Systems to help it control emissions

New York (Associated Press) - A Santa Fe firm has been selected by Caterpillar Inc. to help it control emissions.

Caterpillar on Tuesday named CleanAIR Systems Inc., founded in 1993, as its partner for emissions control products.

CleanAIR technology is to be installed on Caterpillar's commercial engine applications to reduce diesel particulates, hydrocarbons, carbon monoxide and other emissions.

CAT Partners with CleanAIR

Diesel Progress North American Edition - July 2008

Caterpillar Inc. has named CleanAIR Systems, Santa Fe, N.M., as its strategic alliance partner for retrofit emissions products. Within the alliance, CleanAIR will provide proprietary technology, custom engineering and flexible manufacturing of diesel particulate filters, oxidation catalysts and selective catalytic reduction catalysts. CAT will develop integration capability, engineering and marketing support, and will support CleanAIR in meeting demand.

Caterpillar Teams Up with CleanAIR to Fight Emissions

The Santa Fe New Mexican - June 19, 2008

Caterpillar Inc., a major manufacturer of construction and mining equipment, clean diesel and natural gas engines and gas turbines, has chosen CleanAIR Systems Inc. of Santa Fe as the Caterpillar strategic alliance partner for emissions-control products.

CleanAIR's reduction technology will be installed on existing Caterpillar commercial engine applications to reduce diesel particulate matter, hydrocarbons, carbon monoxide and NOx, positioning CleanAIR Systems as the preferred vendor of choice for custom-designed retrofit products, a statement from Caterpillar said.

The alliance encompasses CleanAIR's proprietary technology, custom engineering capability and the company's use of integrated manufacturing in producing diesel particulate filters, diesel oxidation catalysts, three-way catalysts and selective catalytic reduction catalysts, the statement said.

Established in 1993, CleanAIR Systems designs and manufactures complete emissions control systems, including the PERMIT Filter, verified by the California Air Resources Board for Level 3 reduction (greater than 85 percent) of exhaust particulate from prime power and emergency generators, the statement said.

"The deal with Caterpillar has been a long time coming," said Louise Roach, marketing manager of CleanAIR Systems. "We're excited and really working hard right now."

Until no, "Caterpillar has had no one servicing the retrofit market," she said. "They thought about that end of the business themselves but then decided they didn't want to do it."

After a nationwide search, Caterpillar chose CleanAIR Systems from a group of five as the company for the job, Roach said. CleanAIR Systems, which has about 30 employees, will soon move to a newly renovated 30,000 square-foot facility in Santa Fe.

For more information, visit CleanAIR Systems at www.cleanairsys.com.

Will High Platinum Prices Hurt Air Quality?

The Daily Green - March 3, 2008

Most Americans associate platinum with credit cards, the music business or fine jewelry, not with air pollution. But the fact remains that the biggest user of the precious metal is actually the air pollution control industry.

Platinum, usually in very fine coatings, is used as a catalyst in most catalytic converters and diesel particulate filters to rid exhaust emissions of dangerous soot, hydrocarbons and carbon monoxide. Those emissions are major causes of respiratory illness, asthma and lung cancer.

But with growing population and industrialization around the world, coupled with increasing environmental awareness and regulation, the demand for platinum has soared, driving prices upwards. Plus, South Africa, which supplies 78% of the world's platinum, has seen a recent mine shutdown, sending prices of the metal up 41%. Last month platinum cost almost twice as much as it did exactly a year ago, and more than three times as much as it did five years ago.

So what does this mean for consumers? According to pollution control manufacturer CleanAIR Systems there is likely to be some increase in the price tag of new cars and trucks, to reflect more expensive catalytic converters. Hospitals, schools, data centers and others who use diesel backup generators are going to face higher prices in order to stay pollution compliant. The prices of some other goods may also rise, as companies have to pay more for new controls on trucks and heavy mancinery.

Unfortunately, high platinum prices mean it is going to be more difficult for cash-strapped school districts to retrofit old buses with modern pollution controls. That process, ongoing for several years, has been cited as a major priority by green groups, as well as the Bush administration, since it has such a big impact on our nation's children (who have developing lungs and immune systems, and are therefore most susceptible to damage from particulate pollution).

The one silver, I mean platinum, lining to the metal's high value is that it has long had a very high recycling and recovery rate, with junkyards doing a good business collecting and selling used catalytic converters and other devices. With higher prices, it seems likely that even more of the metal will be reclaimed.

See the Source:

The Daily Green

CleanAIR Offers No-Cost Emissions and Product Guidebook

GoodCleanTech - The Independent Guide to Ecotechnology - January 19, 2008

As the Supreme Court battle between the EPA and the California Air Resources Board (ARB) over emission regulations rages on, timely and unambiguous information is needed to aid air pollution professionals, environmental and engineering consultants, as well as engine equipment dealers.

To fill the regulatory vacuum CleanAIR Systems, a manufacturer of emissions control systems, has put out a newly revised Emissions and Product Guidebook. The 80-page report, encompassing comprehensive air quality data for stationary engines and off-road vehicles, is offered at no cost for qualifying firms and consulates.

Here is a list of the Emissions and Product Guidebook highlights.
• California Air Resources Board (CARB) - Current regulatory information, emissions summary charts, a directory of Air Quality Agencies and resource links
• Environmental Protection Agency (EPA) - Nonroad and stationary regulatory information, emissions summary charts, resource links
• A glossary of terms for emissions control technology
• FAQs related to emissions control
• Buyer's FAQs/Buyer's Checklist - points to be aware of when purchasing emissions control products
• An extensive abbreviation and acronym directory
• Links to funding resources
• European Union (EU) - Current regulations
• Texas Commission of Environmental Quality (TCEQ) - Links to regulations and resources
• New York Department of Environmental Conservation (NYSDEC) - Links to regulations and resources
• New Jersey Division of Environmental Protection - Division of Air Quality (NJDEP) - Links to regulations and resources
• Emissions control product information from CleanAIR Systems

To request a copy of the newly revised Guidebook, consultants and equipment dealers can request the form here or email CleanAIR directly

Source:
GoodCleanTech

CleanAIR Systems AeroCLEAN System

Equipment Today - December 2007

The AeroCLEAN System extends the life of self-cleaning diesel particulate filters by using a nonthermal, dry cleaning technique to safely loosen and blow out collected ash in les than 15 minutes.

- Capable of safely cleaning filters in the field

- Requires no electricity

- Safe enough to use daily if needed

- Handles all sizes of CleanAIR PERMIT Filters

- Large containment area allows for repeated maintenance of multiple filters before collected material is removed

ULSD/DPF Combo Cuts Unhealthy Emissions on Multiple Fronts

Diesel Fuel News - September 2003

A combination of ultra-low sulfur diesel (ULSD) with catalyzed diesel particulate filters (DPFs) not only slashes "toxic" particulates and organic gases, but also helps reduce exhaust components that otherwise might cause mild lung injury or decrease lung resistance to viral infection.

U.S. Department of Energy-sponsored studies at the renowned Lovelace Respiratory Research Institute (LRRI) show that changes in diesel exhaust composition also produce a change in relative health effects, as shown in tests with laboratory rodents.

In tests, the use of a catalyzed DPF indicated a positive reduction in non-cancer health effects of diesel exhaust, beyond "toxics" reductions in many studies on DPF systems.

The studies eventually aim to produce data that would help indicate which parts of diesel exhaust can cause non-cancer health effects.

"Diesel exhaust under some conditions has been shown to produce lund inflammation and oxidative stress in healthy rodents," LRRI scientists Jake McDonald explained to Diesel Engine Emissions Reduction (DEER) workshop here.

"In addition, recent work at LRRI has shown that prior exposure to low levels of diesel exhaust decreases the ability to fight off respiratory infection. In these studies, we investigated a common virus that affects children - Respiratory Syncitial Virus (RSV)."

This virus is today the most common pathogen causing lung infections that trigger hospitalization of children under age five.

Research on how diesel exhaust changes can affect resistance to RSV may become even more significant if further health-effects investigations confirm some recent studies indicating that viral infections in young children might be related to asthma later in life.

For the emissions-effects tests, LRRI operated a Yanmar single-cylinder diesel engine either under constant high-load, constant low-load, or at high load with the ULSD/DPF combination.

The high load/low-load non-DPF exhausts were diluted to the same particle concentration. Tests with the DPF used the same dilution rate as with non-DPF, constant high-load test. For DPF-filtered exhaust, researchers employed a CleanAIR Systems catalyzed DPF, certified by CARB for >85% particulate matter (PM) reduction and >95% reduction of carbon monoxide (CO) and total hydrocarbons (THC).

"The engine ran either on ordinary No. 2 diesel fuel (370-ppm sulfur, 29% aromatics, 47 cetane, 35.8 API gravity) or the BP-Arco "ECD" ULSD (<15-ppm sulfur, 49 cetane, 29% aromatics, 37.5 API gravity).

For each exhaust exposure test, researchers assessed particle mass, particle size distribution, and hundreds of individual gas and particle-bound components including organic compounds, metals and sulfate/nitrate.

After exposure either to diesel exhaust or filtered air for seven days as six hours/day, rodents either were injected with the RSV virus or immediately studied for lung injury without viral infections.

Tests showed that high-load engine operation produced exhaust with slightly larger particle size, less CO and less organic material than low-load condition, where organic material and smaller particles dominated.

DPF-filtered exhaust virtually eliminated the elemental (black) carbon and drastically reduced the organic carbon as well. DPF-filtered exhaust also drastically reduced CO, VOCs, and the speciated semi-volatile and heavy organics.

Exposure to high-load engine exhaust produced health effects in both the non-infected and RSV-infected rodents. Health effects decreased - but were still evident - under partial load engine operation. However, the health effects - including oxidative lung damage, lung inflammation (response to lung injury) and resistance to viral infection - weren't seen with the ULSD/DPF treated exhaust.

Following these pilot tests, LRRI will expand its investigation to include health effects of uncatalyzed DPF exhaust, lubes emissions impact during transient engine operations, and effects of spark-ignition engine exhaust.

These tests likewise could help scientists understand which exhaust components are responsible for certain health effects.

"What we're setting up is a framework for determining differences in health response to changes in exhaust composition," McDonald says. "We're asking: Can we get enough different exposure compositions, with enough different samples, to make associations with emerging statistical approaches for investigating mixtures of air pollutants?

"In addition, there are several components of exhaust including particle mass and particle size that have been implicated in increased health responses, but more evidence is necessary before we can definitively say whether either is important.

"We want to know: What are the specific exhaust components that seem to drive the health effect?" McDonald says. "We need to know this so that we can make sure our emissions-control regulatory approaches are handling this correctly."

CleanAIR Systems Wins U.S. Mines Safety & Health Administration Approval for DPF/Fuel-Borne Catalyst

Diesel Fuel News - January 2003

The platinum-cerium FBC enhances soot oxidation in a lightly-catalyzed CleanAIR particulate filter - and it's now officially approved by MSHA for use in mines. The new MSHA approval might also spur DPF-maker interest to pursue "VERT" certification for European mining applications. The system not only slashes particulate matter (PM) emissions by some 89% but also avoids nitrogen dioxide emissions sometimes caused by DPFs with high levels of precious metal catalyst loadings. MSHA ruled out use of certain catalyzed DPFs because CO2 would be a lung irritant in mine applications.

New Catalyst System Targets Diesel-Powered Equipment

Diesel Progress North American Edition - September 1999

As exhaust emissions standards become more stringent, engine aftertreatment systems have again become a focus for many engine and equipment manufacturers and operators. They are particularly suitable for diesel engines that are operated in enclosed applications such as mining and tunneling, or on material handling equipment used inside buildings.

CleanAIR Systems, Inc., Santa Fe, NM, has developed a new catalyst system designed to reduce harmful emissions from diesel engines used in stationary and off-road applications. The new CleanDiesel technology includes advanced ceramic honeycomb catalyst support technology which the company said is an improvement over ceramic bead or wrapped metal systems and offers higher catalyst load levels.

The new catalyst is used in a series of CleanDiesel converters and mufflers designed to fit a wide range of engines used in myriad types of equipment, including construction, mining and material handling machinery.

The CleanDiesel converters are installed in the exhaust system between the engine and muffler while the CleanDiesel mufflers are designed as replacements for standard OEM mufflers. For both systems, the estimated cost is under five percent of the vehicle's value, according to the company.

Both systems incorporate stainless steel housings and are designed as bolt-on units that can be easily installed. In operation, the catalysts, utilizing the heat of the exhaust gas stream, chemically converter CO and unburned hydrocarbons into CO2 and water vapor. In addition, the mufflers and converters reduce visible smoke by up to 30 percent, the company said.

Both the mufflers and converters become more efficient as exhaust temperatures increase. According to CleanAIR testing, the new catalyst has a lower light-off temperature than previous generation catalysts. The result is a 65 to 70 percent reduction in hydrocarbons at 455 degrees F (235 degrees C) and a more than 90 percent decrease at operating temperatures over 572 degrees F (300 degrees C). For carbon monoxide, the conversions efficiencies are above 80 percent at 425 degrees F and up to 99 percent at operating temperatures above 572 degrees, the company said.

The CleanAIR mufflers and converters meet both Occupancy Safety and Health Administration (OSHA) and Mine Safety and Health Administration (MSHA) air quality standards.

Technology of Clean Air: New Generator Set Filter/Silencer

Diesel Progress - June 2007
Diesel & Gas Turbine Worldwide - October 2007

CleanAIR Systems has expanded its PERMIT Filter/Silencer product line with the introduction of a new model targeted specifically for diesel prime power and emergency generator sets. With the enforcement of increasing stringent diesel emissions regulations, generator owners also need control technology along with sound attenuation to meet air quality regulations, CleanAIR said. The PERMIT Filter/Silencer incorporates the company's CARB-verified PERMIT Filter, and meets both noise and emissions requirements.

The Santa Fe, NM manufacturer said the new filter/silencer is designed to reduce PM emissons by 85% and carbon monoxide and hydrocarbons by up to 99%. The CleanAIR Filter/Silencer has an all stainless-steel construction and is fully insulated for sound attenuation, the company said.

The concept of the CleanAIR Filter/Silencer combines the benefits of a silencer for sound reduction and the benefits of diesel particulate filters for emissions control into one space-saving unit.

"We designed our PERMIT Filter/Silencer specifically to fit facilities that need to reduce emissions and sound," said CleanAIR Sales Engineer, Daniel Serrano. "By combining our diesel particulate filters with a silencer, the customer no longer needs two separate units that take up a lot of space. Our PERMIT Filter/Silencer does the job of both by eliminating emissions while at the same time providing sound reduction. It also reduces the overall cost."

Available for all stationary engine sizes, the custom-designed PERMI Filter/Silencer is manufactured using 304 stainless steel. Utilizing CleanAIR's integrated approach, the product is designed and manufactured in-house, including: product design; flow, stress and sound modeling; filter catalyzation; and custom fabrication of the silencer shell. Each PERMIT Filter/Silencer is fully insulated to reduce heat loss and provide sound attenuation.

The stainless-steel silencer is corrosion resistant, thereby extending the life of the product. Using stainless steel also reduces the product's total weight by up to 50%, the company said.

Quotes from the CleanAIR Staff

Michael Roach, President of CleanAIR Systems
"CleanAIR is a top-performing company because of our staff. Everyone gives 110% every day to push the envelope of emissions control technology. When a customer buys our products, they buy the creativity, expertise and technical knowledge of each member of our team."

Mike T., Engineering Manager
"Emissions technology is at a very exciting time right now due to the technical challenges posed by up-and-coming regulations. We strive to overcome these challenges with ingenuity and simplicity, making our products as user-friendly as possible."

Bill T., Testing Facility Manager
"Santa Fe takes pride in its clean air and we take pride in helping the rest of the world achieve this quality."

Diego O., Welder/Fabricator
"The different aspects, and actually the whole process of our manufacturing is very interesting to me. From the smallest of ASSURE DOC mufflers to the large PERMIT Filter/Silencers, it feels gratifying to be doing our part for the environment and the world."

James D., Design Engineer
"We constantly strive for more innovative implementations of our products to compete in an ever growing global marketplace through the use of the latest software and engineering tools. Each new design must be better than the last and by far exceed our customer's expectations."

Joe V., Chemist/SCR Manager
"CleanAIR Systems, Inc. is currently in the process of increasing our production yield of a cutting edge SCR technology. Because the SCR catalyst has a broader temperature range and contains no vanadium, it surpasses the existing technology on the market."

Sam M., Welder/Fabricator
"I enjoy the fact that our work is sent to all corners of the world. I enjoy working with my hands and being a part of something so amazing and important."

Patricia O., Administrative Manager
"The screening process we use for new employees has paid off. The merit and integrity of our staff is reflected in the high quality of products manufactured by CleanAIR."

Matt B., Project Engineer
"Incorporating technology into our products allows us to clean up engines that were previously inaccessible to emissions control."

Roberto R., Production Manager
"The production staff has a high level of pride in the quality of work we produce at CleanAIR. They're dedicated and hardworking - always getting the job done."

Victor G., Production
"I enjoy working with CleanAIR and being a part of something that keeps the air clean. I like working with my hands and I enjoy the overall working environment."

Ruben L., Welder/Fabricator
"I get to do what I like to do - layout and welding. The job is fun, fascinating and usually not stressful."

Jose H., Production/Fabricator
"I like working for CleanAIR because there is much to learn and much to do to help the environment. I am proud and happy to be working here."

Louise R., Marketing Manager
"CleanAIR is all about ideas and the ability to make a difference. Every person who works here has the freedom to offer creative input, whether it's fabricating a filter/silencer or designing the next best technology. CleanAIR's synergistic approach has shaped a company that works as a team and yet appreciates the individual."

Clean AIR Company Milestones

1993
Company founded

1994
Developed proprietary catalyst process

1995
Sale of first diesel particulate filter (DPF) - the PERMIT DPF

1998
Certified in Sweden for diesel particulate filters and diesel oxidation catalysts

1999
Established in-house testing facility

2000
Certified in Taiwan for diesel particulate filters

2001
Working in conjunction with other steel fabricators, develops concept and design for filter/silencer combination, being the first emissions control company to market this product.

2002
PERMIT FBC accepted by MSHA for use in underground mining

2002
Developed the HiBACK Data Logging and Alarm System to measure and warn engine engine operators of back pressure problems that could be associated with filters.

2003
Verified by California Air Resources Board (CARB) for PERMIT diesel particulate filter on stationary engines

2006
Testing of BluFIRE active regeneration system in Japan

2006
Extension of CARB Verification to include prime and emergency generators

2007
Introduction of ENDURE selective catalytic reduction technology

2007
Verification by CARB for PERMIT Filter as part of diesel emission control system (DECS) developed by EGR Technologies

2007
Developed the PERMIT/ENDURE Hybrid, an SCR/filter/silencer product for generators.

2008
Allied Vendor Agreement with Caterpillar to supply emissions control technology and services to CAT Dealers.

2008
Move to new facility, doubling production space.

President's Bio

Michael Roach - President, CleanAIR Systems

1981
Graduate of Ohio State University - Ceramic Engineering

1981-1987
Corning - Various positions involving sales, marketing and manufacturing; including extensive international travel and customer relations

1987-1991
Founded Mirus, Inc. - developed emissions control technology.
Sold technology to 3M

1990-1992
National sales representative for the Engelhard diesel retrofit division

1993
Founded CleanAIR Systems, Inc. to develop a better catalyst

Present
Manages the development and growth of CleanAIR Systems

Market Overview

CleanAIR Systems, Inc. is a technology-based corporation manufacturing emissions control systems with worldwide distribution. Our products are designed to control air pollution for on- and off-road vehicles, as well as stationary machinery and power generation.

Company Mission Statement

CleanAIR Systems is committed to providing superior, custom products at affordable prices with an emphasis on individual customer needs. Our corporation is based on technical expertise while using integrated manufacturing to develop innovative solutions for today's emission control problems.

CleanAIR Systems - Custom products at off-the-shelf prices for clean solutions.

Monitoring Diesel Backpressure and Temperature

Diesel Progress - March 2007

CleanAIR Systems has introduced the HiBACK USB, a microprocessor-based data logger and alarm system coupled with real-time monitoring software. Used in conjunction with CleanAIR's emissions control technology, the HiBACK USB is designed to record and monitor exhasut backpressure and temperature on diesel engines, such as mining equipment, stationary generators and construction vehicles.

Offered with optional software, the new HiBACK USB can track the duty cycle of an engine and analyze engine parameters, providing information on performance and warning the operator of possible problems with the system.

When the HiBACK USB is installed and used in combination with the CleanAIR PERMIT diesel particulate filter, it allows the filter to function at optimal levels by warning of possible plugging or increasing engine backpressure before the situation becomes excessive, the company said.

"By streamlining the task of capturing and dowloading data, plus utilizing Windows-based software to download statistics directly to an Excel spreadsheet, the HiBACK USB makes data logging easier," said Tom Mosley, CleanAIR's customer service representative. "The new HiBACK USB helps the industry monitor the performance of our filters while using software that's easy to understand," he said. "This means better emissions control and better customer satisfaction."

The unit also includes self-diagnostic features for troubleshooting temperature and backpressure sensing problems. Available in two levels, the optional software offers a variety of features depending on user needs.

Emissions Control in the North Sea

Diesel & Gas Turbine Worldwide - March 20007

Controlling the emissions from a diesel generator set is a fairly straightforward proposition, even given that the level of control gets more and more precise with every new tier or regulation. However, when the generator sets are 150 miles offshore in the North Sea, the project takes on a whole different and extreme set of challenges.

CleanAIR Systems, Santa Fe, NM, recently finished an installation of its regenerating catalytic units on a pair of diesel gen-sets on a BP oil platform located 150 miles north of Aberdeen, Scotland.

According to CleanAIR Systems’ Project Coordinator, Daniel Serrando, the company was contacted by BP to install its catalytic units on two Caterpillar 3516-powered diesel gen-sets.

The platform in question is part of the Eastern Trough Area Project (ETAP). BP, Serrano said, was concerned that diesel exhaust produced by the platform’s two stationary generators would enter the crew’s living and office space through the ventilation intake during ETAP’s annual.

Turn Around (TAR). TAR is a brief period each year when essential maintenance and modifications are made to the platform.

During these few weeks, stationary diesel-powered generator sets are used for power for the platform and its 100-person crew, rather than the platform’s larger gas turbines, saving BP a considerable amount in operating costs.

According to Ross Lloyd, BP project coordinator, “the aim was to provide a permanent solution to the risk of hydrocarbon exhaust entering the accommodations during TAR. CleanAIR was chosen because they were the only supplier with the ability to manufacture regenerating catalytic units of this size that were approved and tested on our Caterpillar 3516 engines.”

According to Serrano, CleanAIR engineers in tandem with engineers at BP and Wood Group designed a filter/silencer system for the ETAP stationary generators to reduce emissions of particulate matter, hydrocarbons and carbon monoxide by 90%.

Size was critical in designing this one-of-a-kind system. The generator sets have been used as auxiliary power for the platforms for a number of years. The CleanAIR systems were replacing existing silencer-only packages, and the new silencer/catalytic unit had to fit into an existing envelope of roughly 150 in. long by 111 in. wide and 56 in. high.

The silencer/catalyst is housed in a 316 stainless-steel enclosure, with every weld requiring a non-destructive test. The entire 4000 lb. Package, in essence, became a pressure vessel and had to pass both a pressure test and pressure decay test. Skin temperature also had to be kept below 150 degrees F to meet platform fire safety regulations.

Further, Serrano said, the entire package required things not normally found in a diesel gen-set installation. The lifting lugs, for example, had to be able to withstand 80% of the weight of the package. He also noted that the entire installation was inspected by an independent team of examiners, which required extensive documentation of all the tests and design features of the system.

Using an integrated manufacturing approach, CleanAIR’s Permit diesel particulate filters were installed within a silencer. Due to the compact installation area, which also limited access to the internal filters housed within the exhaust silencer, an application-specific design was the only solution, Serrano said. This was not an off-the-shelf product and in the end, an unusual one-of-a-kind design allowed for the front end of the silencer to be removed for direct contact with the CleanAIR PERMIT™ Filters.

The CleanAIR’s PERMIT™ system is a catalyzed diesel particulate filter that regenerates when the exhaust temperature is above 572 degrees F for 30% of the operating time when operating on ultra-low sulfur diesel fuel. Typically, the system is supplied as a muffler or silencer replacement unit to fit in the exhaust system.

With higher sulfur fuels, the regeneration temperature requirements rise to between 620 degrees and 680 degrees F. Higher sulfur fuel, greater than 50 ppm, will not damage the catalyst coating or the ceramic filter, CleanAIR said.

The PERMIT™ Filter is made of a ceramic honeycomb with hundreds of parallel channels. To control the flow of exhaust gas, 0.5 in. long plugs are placed in the end of 50% of the channels, which form a checkerboard pattern. Plugs are also placed in the other end of the filter to form the same checkerboard pattern, but offset by one. This checkerboard arrangement of plugs forces the exhaust gases through the porous, thin ceramic honeycomb walls. When the gases carrying the carbon particles flow through the fine pores of the walls, the carbon particles are filtered out.

The process of diesel particulate matter collection begins as soon as the engine is started and continues while the engine is operating. As the carbon particles are collected on the ceramic walls, the backpressure of the system increases.

When the temperature of the exhaust is equal to or greater than 572 degrees F for 30% of the duty cycle, the catalyst interacts with the collected particulate to burn the particulate into carbon dioxide, a gas and water vapor that passes through the filter. This regeneration process is dependent upon exhaust temperature and fuel sulfur content. While the exhaust temperature does not have to be above 572 degrees F all the time, the more time above this temperature, the cleaner the filter will be and the lower the back pressure.

CleanAIR said carbon monoxide and hydrocarbon reductions are achieved when the exhaust gases interact with the catalyst on the ceramic filter. As the exhaust gases come in contact with the catalyst, a chemical reaction takes place that oxidizes the gases. The oxidation process turns carbon monoxide into carbon dioxide, and hydrocarbons into water and carbon dioxide.

For the BP installation, timing was also a critical parameter as the units had to be operational for the short TAR window. Serrano said it took eight months from initial discussions to design, manufacture, shipping and installation, with final installation taking place in July of 2006.

Emission-control Device Manufacturer Enjoying High Rate of Sales

Santa Fe New Mexican - December 2006
By Bob Quick

The sweet smell of success CleanAIR’s newest product is a catalytic reduction catalyst for power plants. It’s designed to reduce nitrogen oxide.

In addition to developing new products, Santa Fe’s CleanAIR Systems is hiring more employees and about to relocate to a building adjacent to Valdes Business Park that will consolidate the fast-growing business under one roof.

Right now, CleanAIR, which makes emissions-control devices and this year expects sales of more than $5 million, is operating in three buildings on Center Place, off Airport Road.

“We’re looking forward to the move,” said CleanAIR president and CEO Michael Roach.

“We’re excited about staying in Santa Fe.”

The city is excited about the company, too.

CleanAIR has received a $200,000 grant and a $100,000 loan from the City of Santa Fe, all of which will be used to remodel the recently acquired property. The 30,000 square-foot building was originally built for Pecos Trail Jeans back in the 1970s and was later used by radia­tion- detection manufacturer Eberline and by Santa Fe Community College.

It was most recently Josie’s Best, owned by Morris and Ricky Montoya, from whom CleanAIR pur­chased the property.

“It’s really nice for us to get into such a big building,” Roach said, adding that the property consists not only of the building but also five acres of land that can be used for additional expansion.

The city of Santa Fe’s Economic Development Department is positive about the future of CleanAIR.

“They’re one of our star manufac­turing businesses,” said Craig Fiels, special projects administrator in the city’s Economic Development Department. “They’re doing a terrific job. We’re really proud they’re here.”

CleanAIR was approved for a grant and loan back in 2000, but Roach didn’t apply for the funds until more recently, when he was ready to move into the new building.

“It was when he really needed (the funding) and could work with it,” Fiels said. “I’m sure the mayor and the council appreciates that.”

When the move is complete, Roach expects the company to grow from its current 25 employees to twice that in 18 months.

“It’s difficult to find qualified people, but we’re willing to train them,” Roach said.

CleanAIR’s newest product is a catalytic reduction catalyst for power plants. It’s designed to reduce nitrogen oxide over a broader range of tempera­tures than previously possible and works with power stations burning fossil fuel, natural gas and wood.

The catalyst incorporates technology developed by Los Alamos National Laboratory and represents the first collaboration between CleanAIR Systems and LANL.

The Lab “has been very, very helpful” in the development of the catalyst, Roach said. “They pioneered the technology.”

CleanAIR is now preparing to begin producing the catalyst on a commercial scale.

CleanAIR’s most popular products, the ones that account for most of the company’s rev­enue, are ceramic filters coated with platinum that convert particulate matter and gases into essentially harmless emissions.

The filters are installed on diesel-powered trucks, buses and other engines, with the majority of sales in California.

Recently, Sweden has become a major customer.

One of the company’s larger deals was with BP, one of the world’s largest oil companies, which needed emission-control products for diesel generators used on its oil-drilling platforms in the North Sea.

As it turned out, CleanAIR was the only supplier with the ability to manufacture regenerating catalytic units of the size that were approved and tested on Caterpillar 3516 engines.

“They were very happy with our products,” Roach said. “It was one of our biggest sales.”

The company — in conjunction with the Japanese firm Itochu Corp. — is also developing a new truck-emission technology that automatically cleans out residue from exhaust systems.

To test the device, CleanAIR has imported a Japanese truck and hooked it up to computers in one of its buildings on Center Place. A similar truck has been installed at Itochu’s plant in Japan, allowing the two companies to coordinate experiments.

Many manufacturing businesses are moving overseas to take advantage of lower wage rates, but that’s not something Roach has thought much about.

“Most of our work is custom,” he said. “And our turnaround time in some cases is only a month. Overseas production doesn’t fit in with what we’re doing.”

Roach started CleanAIR in 1993 after moving to Santa Fe from Buffalo, N.Y.

“We checked out California and Arizona, but we didn’t want to live there,” he said of his wife and himself. “We came to Santa Fe after Thanksgiving, and we fell in love with the place” Santa Fe’s deficiencies — a lack of skilled workers, the high cost of land, the lack of infrastructure — were offset by city and state help in getting the business established, industrial training funds and advice about selling to buyers overseas," Roach said.

“New Mexico has a lot to offer,” Roach said

CleanAIR Exhales New Filtering Devices, Inhales Profits

New Mexico Business Weekly - December 2006

The air gets fresher all the time for CleanAIR Systems, Inc.
The Santa Fe-based emissions-control manufacturer is pumping out new products for new markets, ramping up production capacity and enjoying a hefty hike in revenue.

“Government regulations are driving demand for our products,” says President and CEO Michael Roach. “People are really embracing the fact that they need to be green. That makes our job a lot easier from the sales side.”

Revenue will reach $5 million in 2006 for sales and installations of the company’s patented emissions-control devices – a 30 percent jump over 2005 and more than twice the $2 million in revenue Roach reported for 2000.

In fact, to meet growing demand, CleanAIR is moving from its current 18,000-square-foot facility to a 30,000-square-foot complex, Roach says. CleanAIR rents its current installations, but the company will buy the new building for an undisclosed price.

The city of Santa Fe will provide a $200,000 grant and $100,000 loan to CleanAIR to remodel the installations before moving, says Craig Fiels, the city’s special projects administrator.

“This is one of the few companies that does manufacturing here with high-paying jobs and good benefits,” Fiels says. “It’s also a clean industry, not a smoke-stack company. We want them to stay.”

Roach says most growth is coming from demand for current products, which include filters for diesel-powered engines and generators to reduce emissions of carbon monoxide, hydrocarbons and particulate matter.

A ceramics engineer, Roach formed the company in 1993 to create ceramic-based filters with a proprietary catalytic process that uses platinum to convert particulate matter and gases into nearly harmless emissions.

The filters are used to retrofit trucks and other vehicles, and for back-up generators and power plants. About 60 percent of sales are in California, with more markets in the West and other states. But in the past year or so, CleanAIR has dramatically increased sales to Sweden – now accounting for about 15 percent of its annual revenue – thanks to new laws there that require trucks to be retrofitted after one year of service.

Moreover, CleanAIR is about to enter two new, huge markets with fresh products. Roach signed an agreement in 2004 with Japan-based Itochu Corp. (OTC: ITOCY) to develop and market new truck-emission technology in Asia. The technology automatically cleans out ash from diesel exhaust systems to keep them from plugging up. It relies on a miniaturized computer in the engine to fire up a diesel soot burner when the exhaust gets too clogged, Roach says.

“We’ve tested the system with Itochu and it works,” Roach says. “It’s designed now for trucks, but we’ll adapt it for construction equipment too.”

CleanAIR and Itochu spent about $2 million to develop the technology – about 60 percent of that shouldered by CleanAIR itself. The computers are now being miniaturized to fit in truck engines. Roach will start selling the system in early 2007.

A memorandum of understanding commits Itochu – Japan’s third-largest publicly traded company with about $90 billion in annual sales – to distribute the product throughout Asia. Roach says the Asian sales could increase CleanAIR revenue by about $20 million over the next two years.

Meanwhile, CleanAIR licensed new technology this year from Los Alamos National Laboratory to improve filter capacity to reduce nitrogen oxides emitted by vehicles and power plants, including emissions from coal, gas and wood generators. CleanAIR developed the technology into a useable product. It’s targeting late 2007 for roll out, after industry-based testing is finished.

Roach says the technology could effectively double potential markets by expanding beyond diesel filters.

“The diesel market alone is about $3.5 billion to $4 billion per year,” Roach says. “The nitrogen oxide control devices could open another $4 billion market for us.”

Laura Barber of LANL’s technology transfer division agrees.

“The original technology focused on diesel engines, but by adapting it for use in power plants, CleanAIR can greatly expand market potential,” Barber says.

Economic Development Secretary Rick Homans says CleanAIR is blazing an exemplary path for other companies to follow.

“There are huge markets outside New Mexico that our up-and-coming technology companies can take advantage of,” Homans says. “CleanAIR is setting a great example.”

Technology of Clean Air

Diesel Progress - November 2006

Gen-Set Emissions Control in the North Sea

Controlling the emissions from a diesel generator set is a fairly straightforward proposition, even given that the level of control gets more and more precise with every new tier or regulation. However, when the generator sets are 150 miles offshore in the North Sea, the project takes on a whole different and extreme set of challenges.

CleanAIR Systems, Santa Fe, NM, recently finished an installation of its regenerating catalytic units on a pair of diesel gen-sets on a BP oil platform located 150 miles north of Aberdeen, Scotland.

According to CleanAIR Systems’ Project Coordinator, Daniel Serrando, the company was contacted by BP to install its catalytic units on two Caterpillar 3516-powered diesel gen-sets.

The platform in question is part of the Eastern Trough Area Project (ETAP). BP, Serrano said, was concerned that diesel exhaust produced by the platform’s two stationary generators would enter the crew’s living and office space through the ventilation intake during ETAP’s annual.

Turn Around (TAR). TAR is a brief period each year when essential maintenance and modifications are made to the platform.

During these few weeks, stationary diesel-powered generator sets are used for power for the platform and its 100-person crew, rather than the platform’s larger gas turbines, saving BP a considerable amount in operating costs.

According to Ross Lloyd, BP project coordinator, “the aim was to provide a permanent solution to the risk of hydrocarbon exhaust entering the accommodations during TAR. CleanAIR was chosen because they were the only supplier with the ability to manufacture regenerating catalytic units of this size that were approved and tested on our Caterpillar 3516 engines.”

According to Serrano, CleanAIR engineers in tandem with engineers at BP and Wood Group designed a filter/silencer system for the ETAP stationary generators to reduce emissions of particulate matter, hydrocarbons and carbon monoxide by 90%.

Size was critical in designing this one-of-a-kind system. The generator sets have been used as auxiliary power for the platforms for a number of years. The CleanAIR systems were replacing existing silencer-only packages, and the new silencer/catalytic unit had to fit into an existing envelope of roughly 150 in. long by 111 in. wide and 56 in. high.

The silencer/catalyst is housed in a 316 stainless-steel enclosure, with every weld requiring a non-destructive test. The entire 4000 lb. Package, in essence, became a pressure vessel and had to pass both a pressure test and pressure decay test. Skin temperature also had to be kept below 150 degrees F to meet platform fire safety regulations.

Further, Serrano said, the entire package required things not normally found in a diesel gen-set installation. The lifting lugs, for example, had to be able to withstand 80% of the weight of the package. He also noted that the entire installation was inspected by an independent team of examiners, which required extensive documentation of all the tests and design features of the system.

Using an integrated manufacturing approach, CleanAIR’s Permit diesel particulate filters were installed within a silencer. Due to the compact installation area, which also limited access to the internal filters housed within the exhaust silencer, an application-specific design was the only solution, Serrano said. This was not an off-the-shelf product and in the end, an unusual one-of-a-kind design allowed for the front end of the silencer to be removed for direct contact with the CleanAIR PERMIT™ Filters.

The CleanAIR’s PERMIT™ system is a catalyzed diesel particulate filter that regenerates when the exhaust temperature is above 572 degrees F for 30% of the operating time when operating on ultra-low sulfur diesel fuel. Typically, the system is supplied as a muffler or silencer replacement unit to fit in the exhaust system.

With higher sulfur fuels, the regeneration temperature requirements rise to between 620 degrees and 680 degrees F. Higher sulfur fuel, greater than 50 ppm, will not damage the catalyst coating or the ceramic filter, CleanAIR said.

The PERMIT™ Filter is made of a ceramic honeycomb with hundreds of parallel channels. To control the flow of exhaust gas, 0.5 in. long plugs are placed in the end of 50% of the channels, which form a checkerboard pattern. Plugs are also placed in the other end of the filter to form the same checkerboard pattern, but offset by one. This checkerboard arrangement of plugs forces the exhaust gases through the porous, thin ceramic honeycomb walls. When the gases carrying the carbon particles flow through the fine pores of the walls, the carbon particles are filtered out.

The process of diesel particulate matter collection begins as soon as the engine is started and continues while the engine is operating. As the carbon particles are collected on the ceramic walls, the backpressure of the system increases.

When the temperature of the exhaust is equal to or greater than 572 degrees F for 30% of the duty cycle, the catalyst interacts with the collected particulate to burn the particulate into carbon dioxide, a gas and water vapor that passes through the filter. This regeneration process is dependent upon exhaust temperature and fuel sulfur content. While the exhaust temperature does not have to be above 572 degrees F all the time, the more time above this temperature, the cleaner the filter will be and the lower the back pressure.

CleanAIR said carbon monoxide and hydrocarbon reductions are achieved when the exhaust gases interact with the catalyst on the ceramic filter. As the exhaust gases come in contact with the catalyst, a chemical reaction takes place that oxidizes the gases. The oxidation process turns carbon monoxide into carbon dioxide, and hydrocarbons into water and carbon dioxide.

For the BP installation, timing was also a critical parameter as the units had to be operational for the short TAR window. Serrano said it took eight months from initial discussions to design, manufacture, shipping and installation, with final installation taking place in July of 2006.

Regenerative Exhaust Filters Clean Up Virginia Power Plant

Diesel Progress - May 2006

Reducing visible smoke in growing area goal of $1.1 million project

Like many electrical power plants built in pre-emissions times, the VMEA Generation Plant in Manassas, Virginia, was originally built in a remote area, literally “out in the country.” Built in 1990, the 24 MW plant has 16 Caterpillar 3516A-powered generator sets providing peak electrical power for the city of Manassas and the other VMEA members, all nearby municipalities. The 12,600 sq. ft. plant is owned by the Virginia Municipal Electric Association (VMEA), a seven-member purchase power group.

Over time, the area around the plant has been developed, said Jamie Hester, generation supervisor for the power plant. An industrial park is now close by, and more recently a highway bypass routes thousands of people past the plant daily.

With environmental concerns becoming increasingly important for such facilities and a top priority for the City of Manassas Utility Dept., a two-year study was conducted by Aegis Environmental, Richmond, Virginia, to reduce visible smoke from the VMEA Generation Plant.

The result was a $1.1 million project to install 16 regenerative exhaust filter/silencer systems at the plant. Manufactured by CleanAIR Systems, Santa Fe, NM, the first filter/silencer was installed as a pilot project in late 2005. Results from the pilot installation showed a 90% reduction in visible emissions. The remaining 15 filter/silencers were due to be installed by the end of April.

Founded in 1993, CleanAIR is an integrated manufacturer of complete emission control systems for almost all types of engines for both mobile and stationary applications.

For the VMEA installation, the CleanAIR filters are a custom-designed regenerative exhaust filter and silencer package specifically designed to fit into the same installation envelope as the exhaust silencers they are replacing. CleanAIR took a flat “race track”-type silencer design and redesigned and repackaged it to fit the vertical installation required at VMEA.

The regenerative exhaust filters at the VMEA plant are part of CleanAIR’s PERMIT Filter system. A catalyzed diesel particulate filter verified by CARB for Level 3 (greater than 85%) particulate matter reduction on emergency standby generators, the PERMIT Filter system also reduces emissions of carbon monoxide, hydrocarbons and odor by greater than 90%, said CleanAIR’s Daniel Serrano.

He said the design of the PERMIT Filter controls PM by removing particulates of carbon from the engine’s exhaust. The filter is made of a cordierite ceramic honeycomb with thousands of parallel channels. To control the flow of exhaust gas, 0.5 in. long plugs are placed in the end of half of the channels, forming a checkerboard pattern.

Plugs are also placed in the other end of the filter to form the same checkerboard pattern, offset by one. This checkerboard arrangement of plugs forces the exhaust gases through the porous, thin ceramic honeycomb walls. When the gases carrying the carbon particles flow through the fine pores of the walls, the carbon particles are filtered out of the exhaust gases.

Serrano said the process of particulate matter collection begins as soon as an engine is started and continues while the engine is operating. As the carbon particles are collected on the ceramic walls, the backpressure of the system increases. The filter substrate has a catalyst coating that allows the filter to regenerate by oxidizing the trapped particulate into gases, mostly CO2, that can pass through the filter.

Regeneration occurs when the exhaust gas temperature increases enough to initiate the oxidation of trapped particulate in the filter, with those temperatures varying depending on the sulfur content of the fuel.

CleanAIR also said that the catalyst coating reduces CO and HC. As the exhaust gases come in contact with the catalyst, a chemical reaction takes place that oxidizes the gases. The oxidation process turns carbon monoxide into carbon dioxide and hydrocarbons into water and carbon dioxide.

The PERMIT Filter catalyzed diesel particulate filter is packaged with the race track-type silencer that CleanAIR redesigned for the vertical installation required at VMEA. The filter/silencer package is housed in a 304L stainless-steel shell and achieves a sound attenuation of 27 to 35 dB(A), the company said.

Serrano said typically the filter package can be incorporated into a variety of configurations depending upon the specific application requirements.

The most basic configuration is a packaged filter with cones on both inlet and outlet ends. Typical sound attenuation for this design is 12 to 20 dB(A). Replacement muffler designs are used for applications where space is too tight to add the filter separate from the existing muffler. Special inlet or outlet configurations, or brackets can be used that will allow the filter to replace an existing muffler.

City of Manassas Installs Regenerative Exhaust Filters

Utility Connection - February 2006

The Virginia Municipal Electric Association (VMEA), a seven-member purchase power group including the City of Manassas, has installed the first of 16 exhaust filters at the VMEA Generation Plant located at 9898 Godwin Drive.

The filter installation is the result of a two-year study conducted by Aegis Environmental, of Richmond, Virginia, to reduce the visible emissions (smoke) from the plant’s 16 diesel electric generators.

The regenerative exhaust filters are being purchased from CleanAIR Systems, Inc. of Santa Fe, New Mexico. The CleanAIR filters aid in burning excess particulate matter that is produced by the plant, reducing smoke and increasing visibility. The filters also convert any pollutants into harmless carbon dioxide while significantly reducing any contributions to smog or ozone.

The City of Manassas Utility Department has made environmental concerns a top priority, along with the safety of employees and the customers we serve. Taking action after careful study will also save power costs.

Brett Massey, the City’s Energy Services Manager, stated that “we are exceptionally pleased with the first filter that was installed in November 2005. The test results are showing about a 90 percent reduction in visible emissions.”

The overall cost of the project to VMEA members is approximately $1.1 million. The City of Manassas’ share of that cost will be $420,000.

The generation plant is run during peak electric demand times, which in turn reduces the City’s electrical demand and saves the City approximately $1.7 million per year, through our purchased power agreement.

Japanese Firm to Work with NM Laboratories, Universities and CleanAIR Systems

Associated Press - June 2004

Gov. Bill Richardson on Monday announced an agreement with a Japanese company, Itochu Corp., to commercialize technology from national laboratories in New Mexico and the state’s three research universities.

Richardson, traveling in Tokyo, said the company would work with Sandia and Los Alamos National Laboratories and The University of New Mexico, New Mexico Tech and New Mexico State University.

The memorandum of understanding between Itochu Corp. and the state provides a way for the Tokyo-based conglomerate to work with the state Economic Development Department and New Mexico businesses.

Itochu plans to invest in companies and venture funds, create licensing and distribution agreements and form collaborations with research facilities to bring new technology to the global market. Itochu’s primary areas of interest are nanotechnology and biotechnology, which it said are two of New Mexico’s strong research areas.

“This is an important step that will allow New Mexico to convert the $6 billion dollars of research and development in our state into new jobs, new products and new companies,” Richardson said in a news release.

The agreement resulted from four meetings over 17 months between the Economic Development Department and Itochu, both in New Mexico and Japan. Officials from Itochu visited New Mexico in April for briefings by representatives of the labs and universities.

Richardson’s office quoted Eizo Kobayashi, senior managing director and incoming president of Itochu, as saying New Mexico provides a world-class foundation for research and development.

Itochu said the agreement will have an impact on an agreement recently signed by Itochu with CleanAIR Systems, a Santa Fe company that has developed diesel emission control technology; a distribution and licensing agreement with Lumidigm, an Albuquerque biotech company; and negotiations over potential investment in Zircle, a New Mexico venture capital fund focused on developing new products with Sandia, Richardson’s office said.

The governor said CleanAIR Systems will add up to 80 new jobs next year because of its own development agreement with Itochu to market clean truck-emission technology in Asia. The companies will work to develop a system to reduce emissions of nitrogen oxides, a lung irritant and smog-forming chemical produced by diesel engines.

Richardson was in Tokyo to meet with executives from Toyota and to speak at a gathering of Japanese business leaders, marketing New Mexico to their corporations. He also met with business executives and Japanese officials in Seoul, South Korea, where he attended a meeting of the World Economic Forum.

“We are promoting New Mexico’s business assets,” he said. “And we are encouraging these companies to consider New Mexico for expansion of their US business interests.”

He said Japan’s economy is the second largest in the world, and there is a high level of interest in technology coming out of New Mexico. “As we open up new markets for New Mexico companies, that means more jobs for New Mexicans,” he said.

Richardson and Economic Development Secretary Rick Homans hosted three executives at a breakfast Monday. “It’s been very productive so far,” Homans said in a phone interview with The Associated Press.

He said he and Richardson were meeting with officials from several renewable-energy companies to “pitch New Mexico as a partner, especially with renewable energy because that’s such an issue with South Korea.”

Engine Cleaner

Albuquerque Business Journal Outlook - February 2002

If it runs by internal combustion, Michael Roach’s company can reduce its emissions
In the mid-1980s, when Michael Roach was living in upstate New York, employed in the marketing division of Corning Inc., an idea formed that would eventually lead him to New Mexico.

It was a risky idea, he said, but the president and CEO of CleanAIR Systems, Inc. said the concept of carving out a niche market in emissions controls has begun paying off.

“At that time, emissions control was only required on cars. I knew that someday it (emissions control) would extend to every combustion engine made,” he said.

“I and my partner were betting on the right timing to go after the diesel market, and developed technology creating a catalyst out of platinum on ceramic housed in a stainless-steel canister. And, yes, the ceramic is still made by Corning.”

CleanAIR Systems designs and produces emission control systems for all diesel, gasoline, natural gas and propane engines. Its US market is growing rapidly, but 60 percent of its business is still overseas in countries with stricter standards than here.

Roach said picking Santa Fe for headquarters was a result of a pleasure trip to New Mexico.

“My wife, Louise, is an artist, and we came out here in November. There was a heavy snow in New York, and it was sunny here,” he said. “I figured I could make my headquarters anywhere, and you know what a great artists’ community there is in Santa Fe.”

He added with a laugh, “We still think it’s a great location, even for attracting new business.

“My other two competitors in this market are in New Jersey and Philadelphia, so when we fly executives out here for meetings, we try to make it over the weekend. With our great weather and skies, and by the time they’ve done a little shopping in Santa Fe, they usually leave New Mexico with a really good impression. And we’ve helped Santa Fe’s economy just a little.”

CleanAIR Systems initially focused on overseas markets, where stricter emissions standards than those in the United States were already going into effect.

“Sweden saw this problem early on, and legislation created a market for us there in 1998,” he said.

CleanAIR Systems also found willing buyers in Taiwan, thanks in part to New Mexico’s representative in that country.

“New Mexico participated in several catalog shows, where New Mexico companies would provide brochures and catalogs of products and services, and these representatives set up these shows in other countries to help generate business,” he said.

Also a contender from the beginning in the California market, where stricter air pollution standards were established early on, CleanAIR Systems experienced more than a 75 percent increase in sales in 1999 and another 46 percent increase in 2000.

He said he doesn’t discuss overall company revenue but offered that it should grow by 25 to 35 percent this year.

Roach said the company is just in the beginning stages of what will be a tremendous expansion over the next few years, as new federal Environmental Protection Agency laws become effective.

“The retrofit market is here this year, and in 2005, the OEM (original equipment manufacturer) market, like Caterpillar, Cummins, those guys, will all be required to comply.”

The available federal and state money, not to mention private dollars that will be spent bringing aging equipment into compliance, will be in the millions, he said.

Roach said EPA standards are continually changing, making compliance a tricky issue. “The ink is literally just drying on some of these standards. We calculated that if we tested for every possible (EPA) verification category, we would spend $1.1 million on testing.”

In fact, the sole responsibility of some company employees is to track new laws affecting the market and new requirements established by the EPA.

Having already cornered 40 percent of the current retrofit market in the United States, Roach predicted, the company will expand again by an additional 75 percent, eventually employing between 300 and 500 additional workers over the next five to six years.

“We’ll need metal fabricators, chemists, welders, along with a sales and marketing staff. And, being just down the hill from Los Alamos, we’ll have attractive positions for research and development.”

CleanAIR Systems is currently waiting for approval from Santa Fe County government agencies to begin construction on its plant and offices, to be located in the new Santa Fe County Business Park.

Roach said he is a little concerned by what he sees as a lack of support within the state and county government to provide incentives to retain companies like his own.

“We are a clean manufacturer – meaning we don’t pollute, we don’t use water, we provide opportunity for growth, and we offer employment for a wide variety of skill levels from clerical to Ph.D. engineers,” he said.

New Mexico is spending serious dollars to attract businesses from elsewhere, “and I have to wonder why they don’t spend a little of that money on what’s already here.”

Roach added that his company sells very little in New Mexico, although many neighboring states are either under contract or in negotiations with CleanAIR Systems.

“What worries me is that when I drive into Albuquerque and in Denver, you can see this brown cloud. I’m concerned with wanting to make New Mexico proactive. I’ve talked to a number of people in the state government.”

Santa Fe Catalytic Converter Builder Will Help Clean Nevada’s Air

New Mexico Business Weekly - January 2002

A Santa Fe company will soon be helping keep the air clean in Las Vegas, Nevada’s booming construction zones.

CleanAIR Systems, Inc. was recently awarded a contract to retrofit more than 50 heavy-duty construction vehicles with a combination muffler and catalytic converter, dramatically reducing pollution output. The contract is a part of the “Diesel Demonstration Project” undertaken by the Clark County Department of Air Quality, which is aimed at showing construction companies the benefits of reducing diesel emissions. The project will also help construction companies prepare for the likely onset of more stringent federal air quality regulations in coming years. The project is the largest such construction equipment retrofit of its kind in the West, according to Clark County officials.

The Clark County government will pay CleanAIR Systems $102,000 for the equipment to retrofit 50 vehicles from seven different construction companies. They will be using the Clean AIR Systems’ ASSURE™ product, which is a combination of catalytic converter and muffler, and which will replace the mufflers on the selected machines. Money for the test project comes from the state of Nevada. The Clark County Department of Air Quality received a grant for $500,000 from the state to pursue the project.

“This project is very important to us for two reasons. First, it gives us an opportunity to familiarize equipment owners with our emission control systems. Second, we are able to help the community of Clark County take a big step toward improving its air quality,” says CleanAIR Systems’ President, Michael Roach.

Nevada’s Clark County is one of the fastest-growing metropolitan areas in the country, with about 20,000 acres under construction at any given time. It’s also the temporary home of a large concentration of diesel-powered construction equipment. The exhaust produced by that equipment contains carbon monoxide, hydrocarbons and diesel particulate matter. The Environmental Protection Agency has already classified the Clark County region as a “serious” area for too-high levels of carbon monoxide and particular matter.

And although emissions from heavy-duty diesel construction vehicles aren’t regulated in Nevada, neighboring states have pursued aggressive restrictions. California is now finalizing rules that could mandate some form of emission control device on all diesel vehicles. Proposed regulations would go into effect in 2006.

“There had been a lot of complaints about dirty smoke belching out of construction equipment,” says Mike Justice, a California-based consultant to construction companies, many of which are in Nevada. “Industry leaders could see the writing on the wall,” Justice says.

But catalytic converters come with lots of baggage, says Roach. Early version of the technology tended to reduce an engine’s power. But when Justice and some of his clients tested CleanAIR Systems equipment, they found that the driver did not notice a difference.

Armed with reports like that, the Clark County Department of Air Quality embarked on its “Diesel Demonstration Project.” David Hoch, project manager with the Clark County Department of Air Quality Management says that the department is considering an incentive program to encourage other companies to voluntarily retrofit construction equipment with emission control devices, before federal regulations governing diesel emission particulates go into effect. Since combustion engines like those that concentrate in and around construction zones are primary sources, “The Environmental Protection Agency is going to go further on these standards,” says Hoch. “It’s going to be a whole new arena.”

Roach estimates the size of the retrofit market to be $10 billion. Although there are larger, competing companies, Roach says they focus on different markets. Companies like Engelhard Corporation in New Jersey and England’s Johnson Matthey are examples of such corporations. Third quarter sales for Englehard in 2001 came to $1.14 billion; sales for Johnson Matthey were in excess of $8.5 billion for 2000.

Roach says that as states like California establish stricter regulations over air quality, his market opportunities will grow. Hoch says the durability of diesel engines means that they’ll always be demand for such devices to retrofit construction equipment.