Quantum’s parent, IMPCO Technologies, was struggling financially. Quantum, a wholly owned subsidiary of IMPCO at the time, was effectively the R&D arm of IMPCO. IMPCO decided to spin off Quantum from its operations.

Quantum’s business focus was on advanced technologies, especially on technologies related to hydrogen and fuel cell vehicles. This was, and still is, an emerging market. Quantum did not have a business plan separate from its parent.

Developed and drafted a business plan, including potential risks, for inclusion in SEC filings to first define Quantum as a standalone corporation and then for public offering within about a year. Business plan was based on including markets that Quantum had not actively pursued previously, but as a standalone company, Quantum would have to expand beyond its historical automotive customer base. Part of the business plan was to initiate a search for strategic partnerships and potential acquisition candidates to grow into the new markets.

Spinoff was successfully accomplished and follow-on public offering raised $65 million. Business plan was scrutinized by the SEC and approved for filings. Quantum is now a vital company that continues to grow from both acquisitions and organic growth.

To help grow its revenue base, company sought various opportunities and strategic partnerships. Given that hydrogen and alternative fuel technologies were pursuing an emerging market, opportunities for significant organic growth were limited. In addition, the company was in a very weak financial condition after being spun off from its parent company.

Initiated efforts to identify potential acquisition candidate companies that could complement the business strategy, offer a source of revenues, and, most importantly at the time, contribute a source of capital. Conducted a review of alternative fuel, hydrogen, and fuel cell technology companies, and identified two candidate companies in the alternative energy sector that had strong cash positions. Discovered that both had recently (within last 6-12 months) completed public offerings and, thus, had significant cash in the bank. Conducted technical due diligence on both companies, which included several visits to their facilities. Presented both cases to the President/CEO and CFO.

Based on the cases presented, company made offers to acquire both companies, sequentially. The first company, which had the strongest technology and cash position ($54 million in cash), was lost to a higher bid from a larger, cash-rich company. The second company was less attractive (from a market potential perspective and with $40 million cash) and was pursued with a low-bid approach, which was not accepted.

As it turned out, the financial markets rewarded the company for walking away from a bidding war. The result was presenting the business case to the investment community in the form of a public offering, which successfully raised $65 million.

Additional requirements were imposed by the California State Legislature on the South Coast Air Quality Management District (AQMD) to manage its Clean Fuel Program, primarily with respect to reporting and planning. AQMD's Technology Advancement Office was responsible for managing the Clean Fuels Program. The state political climate at the time was not friendly to the AQMD, which was seen as a "job-killing" agency, imposing strict regulations on local businesses and industry. Clean Fuels Program was one of the few positives at the AQMD, but the regulated community felt greater oversight and accountability was needed.

Developed a strategy to make the most of new requirements imposed by the State Legislature, including strategic new tools: a five-year Strategic Vision, a well-documented annual expenditure plan, and a modular, easy-to-update annual report format. These elements were structured so that the new requirements would not be overly burdensome. In addition, organized an oversight committee of external technical experts for the Technology Advancement Office.

Strategy resulted in an easy-to-manage process that satisfied the State Legislature requirements. The planning and reporting elements have been audited by the State of California on an annual basis and found to be sound. Clean Fuels Program, an innovative research and development program that supports advanced alternative fuel vehicle technologies, and its $10 million annual funding is still in place today. The planning process, annual report format, and oversight committee are still in place after 10 years.

Major customer and part owner was questioning the commercial viability of technologies company was developing to support the customer’s fuel cell vehicle programs. The customer did not see a clear path to improve performance and reduce cost of the technologies, and there was no strategic plan in place for developing technologies.

As new Executive Director, reviewed current state of company’s technology, its competitors’ technologies, and market studies on future expectations for hydrogen and fuel cell vehicles. From that review, developed a technology roadmap that would result in improved technology performance and reduced costs. The roadmap included several innovative proposals.

Technology roadmap was presented to the major customer and the company has been following the strategic technology plan and making significant progress in terms of both performance and cost. Material costs have reduced by approximately 50%, even in limited-volume prototypes. Product consistency has improved, with scrap rates in some processes reduced from as high as 50% to less than 10%. Improvements continue to evolve.

Technology roadmap was a critical exercise that needed to go forward, despite questioning by the customer at the time. After proving the effectiveness of improvements, customer now is fully supportive of the approach.

Company was involved in field testing and implementation of selective non-catalytic reduction (SNCR) to reduce NOx emissions from utility boilers. Approach had been an empirical, trial-and-error approach utilizing existing boiler penetrations for the injection of the emission-reducing reagent (urea).

Empirical approach was valid for field testing and technology demonstration, but inadequate to properly design a system to meet emission-performance guarantees. Temperature fields, boiler-flow dynamics, and injection distribution of the urea were all critical factors to achieve NOx emission reductions.

Developed a design protocol for SNCR systems that included heat transfer modeling and cold flow modeling, which would define interactions of temperature fields, boiler-flow dynamics, and injection distribution of urea. Identified a consultant who could conduct the required numerical modeling of heat transfer and boiler flow. As input to the numerical modeling, adapted the technique of physical cold-flow modeling to determine design parameters for proper urea injection distribution and established a state-of-the-art cold-flow modeling laboratory.

Improved performance of SNCR systems by more than 35% compared to empirical techniques previously used. SNCR design protocol was utilized to design SNCR systems for a number of utility boilers. Protocol enabled design of injection systems and injection locations with minimal impact on boiler operation. Specifically, injection locations no longer had to be limited to existing, non-optimum boiler penetrations.

South Coast Air Quality Management District’s (AQMD) Technology Advancement Office (TAO) was responsible for administration of an annual research and development budget of about $10 million. As a result, many technology developers approached TAO for funding of their technologies.

As a public, and very political, agency, the AQMD was sensitive to public complaints. Thus, it was critical that communications with the public were respectful and objective. So, even the most wild ideas had to be reviewed objectively and fairly.

As Manager of TAO, screened cold calls and delegated them among staff. Delegated basic “add-on” devices to a staffer who had prior experience dealing with them. Addressed most of the rest personally, from well-intentioned-idea people to less-than-scrupulous pitchmen. In each case, prepared a scientific, engineering evaluation of their technology and provided them a politically correct (as well as technically correct) response. Requested detailed proposals from the most promising ideas.

Focused on funding only the most promising technologies. Some now being commercialized include the first fuel-cell transit bus by Ballard Power Systems (with 33 on the road today) and low-emission, heavy-duty, natural-gas engines by Cummins, Detroit Diesel, John Deere, Mack, and Caterpillar.

Developed a reputation for objectivity and technical expertise, evidenced by requests to give presentations and participate in advisory groups, including the Combustion Institute (as a peer reviewer), CalStart/Weststart’s Technical Advisory Committee, the AQMD’s Clean Air Awards Committee, and UCI’s National Fuel Cell Research Center Advisory Committee.

One of utility consulting firm’s customers, a major municipal utility in Southern California, needed to develop a strategy to address regulations proposed by the Air Quality Management District (AQMD) that would significantly reduced the allowable NOx emissions from their natural gas-fired boilers.

Technologies being considered by the AQMD to justify their rule-making were expensive (both capital and operation/maintenance cost-intensive). AQMD was specifically trying to impose regulations based on technologies of selective catalytic reduction (SCR) and selective non-catalytic reduction (SNCR).

Reviewed design, operating characteristics, and baseline emissions of every utility boiler in the utility’s generating capacity. Also reviewed available emission-control technologies (low NOx burners, in situ combustion modification, SNCR, and SCR) in terms of performance, cost, operating and design characteristics. Developed a matrix of options for each boiler, including projected emissions reductions with each of the control technologies. From that matrix, developed system-wide strategy of recommended technologies for the utility, addressing emissions performance and cost. Included in the recommendations was technical rationale explaining why not all the technologies were applicable and, therefore, should not be imposed by the AQMD.

Resulting emissions control strategy was accepted by the utility and presented by them to the AQMD. Based on that strategy, the utility avoided the most expensive technologies and based their implementation on the most cost-effective technologies, saving millions of dollars in capital expenditures.

AQMD, under intense pressure from the regulated community (which included the subject utility), relented and delayed the imposition of stringent regulations they were initially proposing. The emission control strategy rationale was, in part, the reason for the delay. Several years later, AQMD passed a more industry-friendly regulation, allowing the subject utility to implement the cost-effective strategy developed.

Engineering Research and Development department had grown haphazardly, often with the first candidate in the door hired. As a result, the department had weaknesses, underperformers, and lacked needed skill sets. As a development-stage company that was still losing money, it was not possible to establish needed skill sets without commensurate headcount reductions.

Working with Director of Engineering, outlined a plan to the CFO identifying the skill sets needed, positions to be hired, and staff to be let go because of underperformance. With CFO’s buy-in, initiated the recruiting process for the skill sets needed, staging staff reductions as new staff were identified and hired, relatively brief increases in headcount were followed by the required reduction. Net budgeted increase was $300,000.

Department was strengthened in the critical areas of material science and composite structure design. At the end of the process and hiring eight very strong candidates, department headcount increased by only two. Actual cost of the staff increase was $200,000, 33% less than budget. New hires contributed immediately to design improvement of company’s products, enabling implementation of the strategic technology roadmap developed to bring company’s products toward commercialization.

Technology Advancement Office (TAO) was a newly formed organization within the South Coast Air Quality Management District. TAO’s mission was to fund development and demonstration of advanced, clean-fuel technologies that could be used to reduce air pollutant emissions in Southern California. Initially, contracts were awarded on essentially a "first come, first served basis." None of the staff had executed formal contracting policies and procedures, resulting in a lengthy contracting process and, worse yet, poorly defined contracts.

Stepped in to establish missing contract procedures based on previous experience as a contractor to other government agencies (US DOE, US EPA), research institutes (EPRI), and commercial customers. Authored standard request for proposal language, defined proposal requirements and formats, and defined proposal evaluation criteria.

Contract policies and procedures streamlined entire contracting process, reducing the time to execute a contract from up to 12 months, typical for government contracts, to less than six months. Policies and procedures are still in practice after 14 years.

Historically, company focused on major automotive OEMs as its customer base. Growth rate of alternative fuel vehicle and hydrogen fuel cell vehicle markets was much slower than anticipated, despite publicity of the benefits and market potential of alternative fuel technologies. Alternative fuel vehicle market, a company mainstay, suffered a downturn that negatively impacted revenue.

Company had no experience in securing government or military contracts, a potential source of funding for research and development work to provide needed revenues while commercial markets for hydrogen and alternative fuels slowly develop.

Developed a strategy to pursue and secure government funding. Identified consultants that could open doors to military and congressional funding. Worked with military consultant to identify most likely command for first military contracts that fit company’s overall direction: the US Army Tank-automotive Armaments Command (TACOM). Presented project concepts to TACOM and successfully generated interest. Prepared proposal to TACOM for high-performance off-road vehicle and refueling infrastructure. Pursued congressional funding with Washington, DC lobbyist to seek continued support for the US Army proposal.

Awarded $2.2 million contract from US Army from this initial effort. Lobbying efforts resulted in $11 million in congressional funding over past three years. TACOM has become one of company’s best customers and biggest supporters. Support for the company has grown in Washington, DC as a result of personal relationships developed over three years.

Technology Advancement Office’s funding was tied to legislation that imposed a $1 fee on all motor vehicles registered in the South Coast Air Quality Management District (AQMD); region included Los Angeles, Orange, Riverside, and San Bernardino Counties. Legislation included a sunset clause that ceased funding after five years. At the time legislation was due to expire, AQMD was under political attack in Sacramento. Special-funding legislation was leveraged to attempt to control the regulatory power of the AQMD.

Led the AQMD efforts to garner support in the State Legislature. This included preparing and giving testimony on the AQMD Clean Fuels Program to legislative committees, walking the halls of the state capital lobbying legislators for their support of the program, coordinating responses to questions, and providing input and guidance during negotiations on additional language being proposed.

Clean Fuels funding legislation was reauthorized for another five years, a major success given the hostile political climate. This provided continuation of AQMD’s innovative technology program with an annual budget of $10 million.

Although the legislation passed, additional requirements were imposed on the AQMD, primarily with respect to reporting and planning. This required further actions to implement changes in the TAO program so that the new requirements would not be overly burdensome. Those further actions included developing a strategic planning process, organizing an oversight committee of external technical experts, and authoring an annual report. The planning process, report format, and oversight committee is still in place after 10 years.