Omnitek Engineering, Corp., a California corporation, began operations on
October 10, 2001, and was a spin-off from Nology Engineering, Inc., a manufacturer
in the automotive aftermarket parts industry and the developer/manufacturer
of the patented "HotWires" spark plug wires. We currently conduct
our business activities at our offices at 1333 Keystone Way, Suite 101, Vista,
California, 92081, which consists of approximately 25,000 square feet of industrial
space.
Omnitek develops and sells proprietary diesel-to-natural gas engine conversion
systems and complementary products, including new natural gas engines that utilize
the Companys technology. Omnitek products are available for stationary applications
(generator sets), the global transportation industry, which includes light commercial
vehicles, minibuses, heavy-duty trucks, municipal buses, as well as rail and
marine applications. The technology can be used for compressed natural gas ("CNG"),
liquefied natural gas ("LNG"), or Biogas ("RNG").
As long as the prices for diesel fuel remains elevated, and the threat of climate
change and air pollution remain a public concern, the search for cheaper and
cleaner burning fuel alternatives becomes increasingly more important. Natural
gas has emerged as an attractive option to address these challenges. Readily
available in many countries from indigenous sources, natural gas is relatively
inexpensive and clean burning compared with gasoline or diesel. We have developed
a system that can be used to convert most diesel engines to be able to operate
using natural gas at a cost lower than that required to purchase a new natural
gas engine.
Engine conversions in the United States are subject to the U.S. Environmental
Protection Agency ("EPA") approval and the cost for converting each
engine model ranges from $15,000 to $35,000, depending on engine features, exclusive
of the cost of the natural gas tank and labor. Engine conversions in certain
foreign countries may require less sophisticated emission control components,
resulting in substantially reduced costs ranging from $3,000 to $15,000, depending
on the engine model and application, again exclusive of the fuel storage system
and labor. During the past year, we have seen a shift in demand, from domestic
to our international clients for engine conversions due primarily to lower oil
prices. With the price disparity overseas between diesel and natural gas still
a market driver, mostly as a result of higher taxes on diesel fuel, most of
our business has been overseas. Additionally, we expect the 200-nation "Paris
Agreement on Climate Change" to further increase demand for our technology,
with foreign fleet conversions outpacing the domestic market until domestic
oil prices begin to increase again. The Company believes it is well-positioned
in both global and domestic markets to capitalize on the increasing awareness
of environmental concerns, and believes it has a competitive advantage over
new natural gas engines and other available technologies for the heavy-duty
engine market.
Omnitek offers four main product lines at this time.
A conversion kit for converting rich-burn natural gas engines to lean-burn;
A conversion kit for converting diesel engines to run on natural gas;
New complete natural gas engines; and,
Natural gas components
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