Haltermann Team Successfully Changes Course to Focus on Diesel Market
June 30th, 2020
The market for Diesel Specialty Test and Reference fuels isn’t something most people are familiar with, but it represents a significant growth opportunity for Haltermann Solutions.
When new engines are developed, they require extensive testing to be approved by the United States Environmental Protection Agency (EPA). Diesel fuels are used in these tests to evaluate the performance of large engines, such as those used in semis and construction equipment. Manufacturers of engines for semis offer warranties for 750,000 miles or more, so they need to prove that their engines can run in a variety of conditions – an effort requiring millions of gallons of diesel fuel each year.
“The Diesel Specialty Test and Reference fuels market is a substantial piece of business that could double our annual volume,” said Don Phillips, Vice President and General Manager of Haltermann Solutions, in nominating this story. “We’ve wanted to grow in this industry, but the timelines associated with validation testing and industry panel approvals are very lengthy. Because of this, we didn’t anticipate having any sales until at least 2021.”
Watching the global automotive market closely, the Haltermann team was quick to act when they saw a downturn begin last fall as gas consumption also declined. “We recognized these as red flags and were able to pivot and focus on accelerating our diesel strategy to stay ahead of the market,” said Ed Hennessy, Director of Sales for Haltermann. “Our team made the most of existing relationships with the testing labs and other industry connections in the push to become an alternative supplier of test fuels.”
The team’s efforts to demonstrate to test labs that Haltermann has the capabilities, storage capacity, and supply chain to manage the increased demand for diesel fuel is paying off. In late May, Haltermann was officially named as an alternative supplier of Test and Reference fuels. “This is a tremendous accomplishment that took 12 months off the development process,” Ed said. “With this approval in place, we can now begin blending fuels to be analyzed and tested with customers to potentially increase volume before year-end.”
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