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On March 5th, 2014, Bill Gates and Cosla Venture Capital EcoMotors announced that they have signed an agreement to establish a joint venture with FAW Jinghao Engine Co., Ltd. (hereinafter referred to as “FAW Jingyuâ€), a subsidiary of FAW Group. It is reported that the joint venture company will be committed to the development, manufacture, sales and service of an efficient cleaning engine (opoc) in China.
The Chinese side will invest in the construction of a commercial-scale production base in Shanxi Province in full, with a planned total investment of more than US$200 million, and will hold 51% of the joint venture company, and EcoMotors holds 49% of the shares. Production preparation work is expected to start at the new plant by the end of 2014. It is expected that the production capacity of the base engine will reach 100,000 units per year from 2015.
The joint venture company is named Beida Yike Power Engine (Shanxi) Co., Ltd. Through cooperation, FAW Jing Hao will introduce opoc (Opposed Piston Opposed Cylinder opposed-piston opposed-cylinder) diesel engine technology into China's growing commercial automotive and engine markets, and develop natural gas and methanol alternative fuel power systems in the opoc technology architecture. This engine features high efficiency, low emissions, light weight, and strong power.
The joint venture company also received high praise from FAW Jiefang Automobile. “FAW Jingyu has been focusing on environmental protection engine technology for many years,†said Yu Bowei, executive deputy general manager of FAW Jinghao Engine Co., Ltd. and assistant to the general manager of the engine division of FAW Jiefang Automobile Co., Ltd. "We are very pleased to partner with EcoMotors and the opoc engine will contribute to China's low-carbon future."
The joint venture company is located in Jinzhong City, Shanxi Province. It will become an important part of the clean car industry and value chain in Jinzhong City. “We welcome the deployment of opoc engine technology to Jinzhong,†said Mr. Chang Zhiren, Deputy Mayor of Jinzhong City, Shanxi Province. “We will fully support the development of the joint venture.â€
Compared to traditional engines, the opoc engine has reduced parts by 50% and is lighter in weight. The modular design of the opoc engine significantly increases the efficiency compared to an ordinary engine of the same horsepower. The deployment of the "dual-module" opoc engine has excellent fuel economy, reduced fuel consumption by nearly half, and greatly reduced greenhouse gas emissions. At the same time, the light weight and size of the opoc engine also allows car manufacturers to fundamentally rethink the design of the vehicle, which will likely further improve aerodynamic efficiency.
“We are very pleased to become a partner with FAW Jingye,†said Mr. Andrew Chung, managing partner of Kesra Ventures and board member of EcoMotors. “The opoc engine will contribute to China’s low-carbon future. The joint venture with FAW Jinghao is also an important step towards meeting the global demand for energy-efficient transportation technology.â€
As an EcoMotors investor, William D.Lese, Managing Partner of Braemar Energy Ventures, said: “This partnership will illustrate how EcoMotors' technology is developing and serving customers in a growing and important market. In the long run, it will increase Technological advances that have fuel efficiency without affecting engine performance will have a huge impact on society.â€
Bill Gates invests in FAW Jingyu engine building in Shanxi