ihcfan (62.45)

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Natural Gas, why WPRT is all hype

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February 02, 2012 – Comments (3) | RELATED TICKERS: WPRT

How many innovative business ideas require government subsidies to work? Call me a capitalist, I just can't subscribe to the hype that NG is a savior when there is a strong belief that the government needs to drive the industry or infrastructure. Furthermore, even if there are tax credits or subsidies for such an industry, we've had propane conversions for gas engines for 20 years, Convert a propane stove to natural gas, you're out maybe 5 minutes and a few dollars for the orafice. The concept that any big player, Ford, GM, Toyota, Navistar, Cummins, Detroit, etc couldn't design, test, and build an engine that effectively used NG in a short period of time is just stupid. They're too dumb to build injectors? Really? If the government does push a better distribution system for NG, thorough subsidies or tax credits, I'm willing to bet that none of the big automakers will even think about WPRT. They'll pay several interns and a few seasoned engineers a few thousand dollar bonus to develop the technology during.their lunch break. The technology hasn't been adopted because conversion is hard...it's because distribution isn't profitable yet;and whenever the government is in the subsidy business, it screws up the economy.

3 Comments – Post Your Own

#1) On February 02, 2012 at 12:49 AM, Sharkface (< 20) wrote:

Patents, thats just 1 reason, its easer to use outsource products and not have to be bothered with any development costs and legal battles.

Gm, Ford and the rest of them all outsource plenty of parts.

Everybody's happy……..

Some people do things better, its ok

If your making a snowman you can build the whole thing yourself,

otherwise your probably going to want a purchasing department.

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#2) On February 02, 2012 at 2:51 PM, jtawork (< 20) wrote:

You are wrong...you are just wrong. The private sector isn't waiting on the government. This movement doesn't even require a subsidy to save the consumer money. This is solely about an overabundant supply of a cleaner, cheaper, burnable fuel on our soil.

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#3) On February 03, 2012 at 7:11 AM, ihcfan (62.45) wrote:

First, I agree that it's easier to outsource parts, but that's only when they don't command a premium. I believe most of WPRT hype is that their patents lock up design and provide them the ability to participate not as a commodity parts supplier. I believe the speculation to be false, that if they have solid markups, big suppliers will figure out how to work around nearly anything they've locked up.

Second, if one believes that methane will power lots more in the future, why would one believe that a 'good' way of capitalizing on that believe is to invest in WPRT? Pick any gas supplier, anyone capable of building infrastructure, anyone capable of putting together vehicles that can make use of it, but to pick WPRT makes little sense.

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