Due to our experience with engine-driven equipment, markets and technology, clients have retained us for assistance with products and services with broader applications.  Typically, these requests involve issues around energy utilization or consumption. Our efforts in this field focus on:

• Equipment market analysis
• Competitive assessments
• Economic assessments of proposed policies and regulations
• Technology analysis

For technology analysis assignments, we utilize the resources of SRI International (www.SRI.com) with whom we have joint business agreements, or other specialists as needed.  This allows STG to provide the flexibility of a small consultancy with the technological resources of a major research organization.

Examples of energy-industry related projects are provided in the following:

Heating and Air Conditioning Markets in North America

In this study, we analyzed the US and Canadian markets for heating and cooling products for a client with a technological innovation in this area. The study team combined reported data and interviews to provide quantitative and qualitative understandings of the market, including market size and a discussion of changing direction and influences. 

Market drivers were identified, including number of homes by region, new construction, the use of air conditioning in new construction and as replacement units, and the effect of national and international regulations (and some state regulations such as those in California).  Submarkets for room, packaged-terminal, through-the-wall, single package and split air conditioning system and heat pump systems were described.  Likewise, profiles were developed of furnace and boiler heating system markets.  We conducted a series of telephone interviews with HVAC contractors in 16 states to obtain “local” perceptions of issues affecting the market for these products, and attitudes toward a specific client-proposed product.  Our findings assisted the client in their negotiation with potential partners to utilize their technology.

The Economics of Alternative Fuels and Conventional Fuels

This study evaluated the overall economics of methanol as a viable fuel for motor vehicles, and its effectiveness for reducing emissions and improving overall air quality in the Southern California basin.  The study concluded that significant substitution of methanol for regular fuels would be needed to meet the South Coast Air Quality Management District's goals.  Use of methanol would result in fuel cost increases of about 10% to 35% above regular gasoline and 25% to 50% above diesel fuel (assuming oil prices remained within a specified price range).  Significant capital investment also would be required to implement a methanol fleet strategy, and a increased energy imports would result.  

Microturbine Business Opportunities

The emerging market for novel power generation equipment has increasingly volatile over the past decade.  For the developer of a Microturbine system, STG undertook a market evaluation that assessed competitive and regulatory issues that such a program would need to address if it was to meet their business objectives.  We assessed competition for systems of the size our client was contemplating for such uses as distributed power generation, combined heat and power applications and mechanical drives.  We evaluated demand in such market segments as off-grid emergency and stand-by power with individual units exceeding 100 kW output; off-grid emergency, stand-by and cogeneration use by high income households with 20-60 kW of peak load demand; and on-grid peak-shaving applications in a variety of business sectors.   We described future prospects subject to environmental, thermal efficiency & performance, physical envelope, dual-use capability and regulatory considerations.  Our results enabled the client to prioritize R&D investments among a portfolio of programs.

Review of Prospects for Solar Cell Technology Commercialization

Our client's research team had developed a new fabrication process for solar cells.  We were asked to identify the likely competitive benefits of cells and arrays produced by this process in competition with other systems in today's market, or that expected within the next 5 years. 

We reviewed the performance and costs of major existing solar cell programs worldwide.  The strengths and weaknesses of the clients system in competition with these others was identified and described.  An assessment of the client's competitive positioning was provided.  We provided a forecast that enabled the client to assess if their technology had sufficient payoff to justify further investment to refine their developments. 

Demand for Small Generator Sets in the United States

This report was requested to provide an assessment of the future demand of small generator sets in the United States.  The focus of the study was on generator sets of less than 35kW rating, and grouped into gasoline-fueled portable generator sets; gasoline, gas, or diesel-fueled stationary generator sets, and natural gas/LPG-fueled modified portable generator sets.  For each group, we provided data on the major uses and customer types, manufacturer shares, distribution channels and pricing. 

As published data on the small generator market is very limited, we conducted an extensive literature search of trade publications, newspaper articles, company annual reports and prospectuses, and manufacturer brochures to gather information on current status and future trends of small generator sets. We utilized individuals with specific market knowledge to augment our team.  Telephone interviews were conducted with the major manufacturers of small generator sets and their product literature was obtained.  We also conducted interviews with dealers and distributors; mass merchants; engine and component manufacturers; and the California Air Resources Board (CARB). CARB and US Environmental Protection Agency regulations (including pending regulations) were described. The client utilized our results as part of their business plan for a new product development effort.

Market Outlook for Aviation Gasoline

This report was requested to provide client development staff information on the avgas market in the United States in general, and specific information as to the present and expected future specifications for sulfur content of avgas.  In the first part of the study, we provided information describing the avgas market in the United States and the petroleum companies that compete in it.

In the second part, we provided information on the various grades of avgas that exist and that are under development, as well as summary information on sulfur content and other physical properties.  In the final part, we reviewed a number of key issues, highlighting the fact that the future characteristic of general aviation (GA) fuel has many uncertainties.