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December 15, 2014 Issue

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Cost Effective Energy Saving Exhaust System Technology

 

 

Interview with: Cynthia O'Donnell, CEO and Dustin Nord, Owner & CTO

 

NG1 Technologies

www.Ng1tech.com
 

Dustin Nord

Owner & CTO

 

Interview conducted by:

Lynn Fosse, Senior Editor, CEOCFO Magazine, Published – December 15, 2014

 

CEOCFO: Ms. O’Donnell, what is the concept behind NG1?

Ms. O’Donnell: We actually have two companies. Our company NG1 Technologies is a Florida LLC; the concept is more R&D and a vehicle to introduce innovative technologies that are sustainable out into the market, particularly in terms of energy efficiency. That is the mission of the company. We are developing an exhaust product that has 10 to 20 percent fuel efficiency, improves the torque, and is much quieter. We then formed a company, NG1 Techflo Exhaust, to launch that product. We will also be developing technologies to improve the speed of fluids and gases moving through a tube which will be able to be applied in many different areas to increase energy efficiency or efficiency in flow rates. We are going to be launching more products using that technology after the exhausting. Currently, our focus is to launch the exhaust company.

 

CEOCFO: Would you explain a little more about how that technology works?

Mr. Nord: Basically, our system reorganizes the flow structure of gases and fluids flowing on the inside of a pipe by adding multiple energies, and reducing friction, which improves flow rates. What happens is the flow of gases going through a tube is constantly slowing due to frictional loss by the sidewalls causing it to lose enough energy to the point where it baffles, and rolls over top of itself. That baffle causes a sharp drop in the velocities of the gases moving through it. The TechFlo system takes that baffle out. As the flow loses energy, we are able to reorganize it through our system’s “rifling” effect. That rifling goes through the system acting much like an airplane wing, but instead of giving vertical lift, giving horizontal velocity. At the pipe walls where there is normally a loss in flow because of the wall restrictions, now that flow along the wall is going faster.

 

CEOCFO: What will you be selling?

Mr. Nord: Right now we created an aftermarket, retrofit diesel exhaust system. We are launching in the Class 8 (18 wheeler) trucking industry. Holley Exhaust is one of the most recognized names in the exhaust industry. They are based in Bowling Green, but we are manufacturing out of the Aberdeen Mississippi facility.

 

CEOCFO: Why did you start there?

Mr. Nord: We are from Sarasota, Florida but there is very little transportation in that area. We had a test company, S&J Logistics, out of Memphis TN so when we arrived in Memphis, we saw the number of trucks in the region fitting our criteria. We set up a small base in Memphis and did a year and a half of beta testing in Mississippi and Tennessee with over 3,500,000 miles before we started to sell our first products.

 

Ms. O’Donnell: We also started working with a business incubator out of Mississippi, Innovate Mississippi, that introduced us to Holley, and lead us to the Clean Tech Open.

 

CEOCFO: Are you in a test phase with them now?

Ms. O’Donnell: We are past our beta testing phase and are actually launching the product. We are going into production and doing our first batch right now with Holley. We have sales agents in the field who are out starting to talk to trucking companies about our products. We simply save people money, every $2,500 investment in our product can potentially return $7,000/ year in fuel savings.

 

CEOCFO: What has been the challenge?

Mr. Nord: One of the things that was the most challenging is that we are going against a lot of the standard thoughts on the way fluid dynamics works. Since now all the modeling has been done by computer generation. The computer is basically set by what they call “boundaries”. The computer can only simulate what it has been introduced to. One of the things that we originally had to do was when we were doing our testing through Cobra Design and Engineering; they were doing the simulations for how and why the system was working. The first time we went through the super computer, it went for three days chewing on the equation and it came back error because of the boundaries. It has been a great asset to us, and at the same time it has also been probably one of the larger challenges because it does go against what the standard basic models are. At first, engineers do not get it, but once you explain it step by step with them then all of a sudden they have the aha moment and they understand what was happening.

 

CEOCFO: What is your business model?

Ms. O’Donnell: Our business model right now is to launch the direct sales for the exhaust system, and as an exhaust system there are several potential markets. However we will also develop this technology into other technologies outside of the exhausting field. We believe that it can be useful in any type of water and oil piping, so we are looking to develop those verticals along more along the lines of strategic partnerships and licensing routes. With the exhaust technology, we are selling to the aftermarket currently, and at some juncture we will be talking to the OEMs as well – original equipment manufacturers.

 

CEOCFO: Do you see partnerships or will you be developing totally in house?

Mr. Nord: We are always open to partners. One of the things we found in this entire process is that the more high-end people that you can bring in that work well symbiotically, the better the results are going to be because when you put one mind to one task you are only going to get one result.

 

CEOCFO: What was the biggest change for you from your original concept? What did you learn as you were developing the product that has made it different today?

Mr. Nord: When we were originally starting the project, I was working with another gentleman that was in Australia. Unfortunately he had a stroke and passed away several years ago, but at that time we had the product up to about five percent. It would get close to the 10 percent mark, but it was normally between a five and eight percent. When he passed, everything was passed over to me to complete, but he never gave me the actual work that said build this for this pressure, velocity and flow ratio. None of that was there. He knew it in his head, so I had to go back through, which took me almost hand built 200 prototypes to be able to get to the design that it was now. In the process I was able to add all these other technologies and improve the results from 5% to 8 %percent to a normal low around 13% to 16%. That almost doubles all other fuel savings technologies.

 

CEOCFO: Are companies excited when they find out what you are able to do?

Mr. Nord: They are even more excited now that we won the Clean Tech Open because it created a lot more validation. The industry has been inundated by products that made claims that could never produce them, but the thing is that this is not just a product, this is a new technology that has applications in any flow-based system potentially everything from hydroelectric all the way through.


CEOCFO: Are you funded for the next steps or for the push to continue development and do the sales effort that you would like?

Ms. O’Donnell: We are actually right now focusing on our exhaust company, and we are seeking additional funding to launch that. We have one funder right now who is very interested, and it looks like they are probably going to come on board in January however we are still presenting to raise funds because we would like to do a larger roll out, ultimately. For the other applications, we have not gotten funding or partners yet. We are focusing focus on the exhausting, but will be seeking Strategic partners and look to license much of the other flow rate technologies.

 

CEOCFO: What is the market like today?

Ms. O’Donnell: I think for us it has also been looking at areas of the country that are stronger in investment than others. I have been very grateful to the support that Southeast has given us, and the process we have gone through to become a full-fledged company and get investor ready, but where the investment funds seem to be focused are more in San Francisco, Denver, Houston, Boston, and New York. Those cities seem to be more ready to invest in emerging companies. It can be challenging to get VCs interested in emerging companies, and some angels are not quite as sophisticated as others, but I would say in the listed cities that I mentioned, the angel investors are pretty sophisticated and interested, and the VCs are very interested too. As far as the product market, one of the top expenses for the long haul truckers is fuel. They need our product as fuel is 39% of their operating budget and they operate in general on very low profit margins.

 

CEOCFO: What is involved in a retrofit? What do you have to do to get a system up and running?

Ms. O’Donnell: It is an after-market exhaust so it basically goes where the exhaust is now. We are primarily working on diesel engines (Medium duty to Class 8) that do not have a twin turbos or the current emission technologies on them. The DPF filter and DEF systems that are emissions being utilized today. We found that in the diesel industry a lot of the companies do not like those products for various reasons. One is they tend to create more maintenance on their vehicles and reduce the longevity of their engines. We feel like the market really wants a new emissions technology as well. Right now, we are a fuel saving technology, but we also have shown promise in the emissions reduction aspect as well. Our model is to launch our aftermarket product which would be for people who have the vehicles that do not have that emissions technology on it, so 2008 and older. These are mostly the independent owner operators to medium size fleets account for about 70% of the trucking market. They are really looking for every way to create fuel savings. In that sense, we may be the largest value per dollar to the trucking and transportation Industry. After we launch the aftermarket we will pursue development on emissions reduction.

 

CEOCFO: Put it all together for our readers. Why NG1?

Mr. Nord: For the customers, every $2,450 that you give us, we return around $7,000 to $10,000 at just 10% fuel savings. That is almost a 3X the first year in just fuel savings, additionally because of the lowered engine running temperatures, belts, hoses, even oil changes are needed less regularly which adds to lowered maintenance costs and to longevity of the engine. From the investment side, we have been able to create a price point that was extremely cost effective for the end customer but still maintain around a healthy percent margin for the investor. It is the perfect price for the investor, and it is the perfect price for the customer.

 

CEOCFO: Final thoughts?

Ms. O’Donnell: We really feel like our company has so much opportunity and we are getting interest from high-end executives. They are saying that our company could be a billion-dollar company, and we want that too, and that is where we want to take it. If anybody wants to join us in that process, they are welcome and we are willing to talk to them.



 

“For the customers, every $2,450 that you give us, we return around $7,000 to $10,000 at just 10% fuel savings. That is almost a 3X the first year in just fuel savings, additionally because of the lowered engine running temperatures, belts, hoses, even oil changes are needed less regularly which adds to lowered maintenance costs and to longevity of the engine.” - Dustin Nord


 

NG1 Technologies

www.Ng1tech.com


 

 



 

 


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