There probably isn’t a single reader out there that hasn’t been slowed for road construction at some point in life. Pay close enough attention and you’ll see mobile generators powering the equipment that the workers are using. The same goes for construction sites and countless other applications. In fact, mobile power generation is a global market exceeding $100 billion and growing. With Donald Trump’s campaign pledge to spend up to $1 trillion on infrastructure to build and repair our nation’s bridges, roads, airports and the like over the next decade, not to mention increasing the number of military forces, the mobile power generation market should experience a significant increase in activity going forward.
As evidence that market participants believe in the President-elect’s spending plans, shares of companies like Caterpillar, Generac, U.S. Steel and Emcor, to name a few, have bolted higher since the election results. Whereas ongoing president Barack Obama wanted the Affordable Care Act, aka Obamacare, to be a hallmark of his time in office, Trump’s legacy could be firmly cemented in infrastructure spending.
Tim Hassett, Chairman and CEO at Cool Technologies, Inc. (OTCQB: WARM) thinks developments at his company are coming together in harmony with Trump taking office. Cool Technologies, who has a multi-prong growth strategy underscored by patented technologies in the areas of mobile power generation, energy efficiency and thermal dispersion, is nearly ready to publicly unveil its first mobile power generation work truck. The retrofitted Ford F-350 dually is getting its final tweaks, tests and polishing to be shown off in January. In the meantime, select potential customers can get a sneak peek by invitation only, such as a demo at the end of November that gave a head-to-head comparison of a Doosan G70 (70 kW) tow behind generator and Cool Tech’s MG30 through MG80 (30 kW-80 kW) mobile systems.
Cool Tech is aiming to disrupt the mobile power market, which is dominated by pull-behind generators, by transforming any Class 2-6 truck into a mobile generator. Truck classes are defined by gross vehicle weight rating. An example of a Class 2 truck would be a full-size pickup, such as a Chevy Silverado 1500 or Ford F-150. Class 6 trucks have GVWRs up to 13 tons, such as a Ford F-650, meaning that Cool Tech is covering the majority of trucks that are used daily to pull generators to job sites.
The F-350 truck of Cool Tech features a custom 42.3 generator built by Emerson Electric (an industry leader that precision motor maker Nidec Corp. agreed in August to acquire for $1.2 billion) that can deliver up to 400 kilowatts of electric power. Aside from the obvious perk that users don’t have to tow a heavy generator, benefits abound from this new dynamic. The Cool Tech product, generally shortened to MG for “mobile generation,” weighs in at only half (at the minimum) of a traditional tow-behind generator that can deliver the same power output. For example, a Doosan G70 tips the scale at 4,800 pounds, versus only 1,028 for Cool Tech’s MG. Less weight means better fuel economy, less wear and tear and an improved bottom line. According to Cool Tech, the fuel savings is in the range of $3,000 to $8,000 annually. Factor in that Cool Tech’s MG costs approximately 20% to 40% less and customers can quickly realize a return on their investment.
With nothing in tow, a vehicle is far more flexible with respect to terrain it can traverse, particularly military applications. Furthermore, if something else does need to be towed, the opportunity is available with the generator now on board as part of the truck bed.
The fact that Cool Tech has taken the pull-behind generator and put it under the chassis is not all that makes their design unique; not even close. The generator is powered by the truck’s engine to run compressors, welders, backup power or even plug into the smart grid. That means it can ultimately be powered by any type of engine or fuel, including natural gas, diesel, solar, fuel cell, etc. With a worldwide focus on greenhouse gases, Cool Tech is effectively eliminating one motor (the one that normally powers the generator) from the equation and offering the choice of green fuel sources and a no-idle option, naturally cutting or even eliminating emissions created during mobile power generation.
Simply put, it’s less fuel, less upfront and maintenance expenses, less emissions and less energy with the same power output.
Hassett indeed may be spot on regarding timing with his company looking to enter the revenue-generating stage as Trump takes his seat in the Oval Office. Trump’s initiatives will highlight the struggles of utilities to meet demand of an already strained power grid owing to increasing population and industrialization. The aggregate of an aging grid, strengthening economy and plans for an induced spike in infrastructure and military spending provides a unique opportunity for Cool Tech and its mobile power generation for uses essential to an array of industries such as energy, mining and construction, to name a few.
For Cool Technologies heading into the new year, there perhaps could not be a better industry environment to launch their products and epitomize the old axiom of being in the right place at the right time.
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