HTC Purenergy Heating Up With Oil & Gas

HTC Purenergy Inc. (TSX V: HTC) provides products and services to the energy industry through its two subsidiaries, Maxx Energy Solutions Corporation and HTC CO2 Systems Corporation.  Maxx Energy focuses on the provision of oilfield equipment and services while HTC CO2 concentrates on creating proprietary technologies related to carbon dioxide capture.  Corporate headquarters are based in Regina, Saskatchewan.  A new manufacturing facility is being constructed in Davenport, Iowa.

Leadership

HTC Purenergy benefits from stability in their senior leadership positions.

Lionel Kambeitz has been with HTC since 1996.  He brought a diverse background with experience in the fields of agriculture, environment, engineering and financial services, and time spent helping to found both public and private companies in Canada and the United States. Kambeitz also holds the titles of Chairman and CEO of Millstreet Industries and HTC Hydrogen Technologies Corporation.  He is a Director of HTC Purenergy, Millstreet Industries, and Kingsland Energy Corporation where he also serves as Chairman.

Industry veteran Jeff Allison joined HTC Purenergy in 1995 and is their Senior Vice President and CFO while also holding a directorship with the company.  Like Kambeitz, Allison also helped found a company, in his case CUCORP Financial Services.  Allison is also CFO of Kingsland Energy Corporation and Millstreet Industries.  His Millstreet portfolio also includes the roles of President and Secretary.  His directorships include posts with HTC, Millstreet and Kingsland.

Current Status

Maxx Energy Solutions evolved their current roster of products and services by developing some in-house and through the acquisition of existing Western Canadian companies with an established foothold in their sector.  The “house” brand, Maxx Energy Products and Services Corporation, operates under a trio of names.  Maxx Drill furnishes hydraulic centrifuges, stands and floc tanks along with liquid intake and fluid management tanks.  Maxx Frac is making inroads in hydraulic fracturing by providing such items as water heaters and boilers, tanks, water containment ponds and corrals and fraccing equipment.  Maxx Equip offers traditional items used in oilfields.

The three acquisitions offer key Western Canadian locations.  Pinnacle Industrial Services offers custom, CNC and conventional machine shop fabrication services with a focus on cranes to clients in oil and gas, steel mills, mining, fertilizer and construction.  Their material handling division builds and retrofits plants.  They are well positioned, to access the western Canadian energy industry with offices in the key cities of Calgary and Regina.  Pinnacle has been in business for 16 years.

Nuvision Industries designs and constructs unique application equipment and technologies.  They also specialize in custom fabrication and welding for fertilizer plant material handling from its facility in Carseland, Alberta which is near Calgary.

Steelblast Coatings and Paintings is a Regina based-company that provides industrial sealants and solutions to their clientele.

While some of the Maxx offerings provide key staples needed by hydraulic fracturing,  HTC CO2 Systems Corporation is the creative arm of the company, developing products that hold in harmful by-products and reduce the negative emissions energy operations produce.  Through collaboration with Canadian and international engineers, manufacturers and researchers, HTC  patented two series of items that can significantly reduce expenses.  Their CO2 capture systems can be added to existing facilities, thereby eliminating the cost of shipping in CO2.  Their re-claimer structures  separate solids from solvents.

HTC also provides a line of products for the gas processing industry.  Their gas purification systems remove vapor-phase impurities from industrial gas streams.  HTC trademarked the RS line of solvents which are used to remove common vapor phase impurities such as sulfur dioxide and hydrogen sulfide from gas streams.  The HTC SRS solvent re-claimer system removes substances which hasten solvent degradation.  The kinetics of reaction and diffusivity of a gas into liquid are measured by the HTC Lanimar Jet Absorber.

HTC developed a process that maximizes the efficiency of designed and existing energy plants.  Trademarked as the PDO Engine, the software based design tool weighs such factors as equipment size, resource allocation and sensitivity analysis in an effort to maximize productivity of the workspace and maximize CO2 capture.

The Future

HTC Purenergy is working to expand its revenue in both oil and gas by developing new locations which are strategically located to take advantage of the increased production in Montana’s Bakken Oil Fields and the Marcellus Gas Fields which are arguably the largest gas deposits in the United States while also being the cheapest location in which to drill.  Covering parts of the states of New York, Pennsylvania, Virginia, West Virginia and Ohio, the Marcellus deposits are attracting much investment and have the attention of the natural gas industry.  Watch for news on HTC’s movement in the area but also pay heed to any environmental initiatives which can adversely affect the fraccing industry.