AAR Approves Field Trials for New Standard Profile Bottom Outlet Valve
May 12 2020 - 9:00AM
Kelso Technologies Inc. (“Kelso” or the “Company”), (TSX: KLS),
(NYSE American: KIQ) reports that the Association of American
Railroads (AAR) has approved Kelso’s new standard profile (4”)
bottom outlet valve with a ceramic ball (BOV) for commercial field
service trial testing.
The standard profile BOV field service trial
joins the Company’s low-profile bottom outlet valve currently in
field service trial testing - completion of which is required for
final AAR approvals. Low profile designs were popular with some
shippers five years ago when Kelso started its BOV development
initiatives, but standard profile designs are now preferred by the
majority of shippers, especially for products that require heat and
steam jackets. Kelso is committed to complete the field service
trials of both low and standard profile BOV.
The continued development of the Company’s
standard profile BOV has been a direct result of Kelso’s new
customer driven co-engineering program. The Company’s stakeholders
have been key contributors in designing a better performing
standard profile BOV. The co-operative ambition is to significantly
diminish the expensive chronic performance problems that are
persistent with the traditional bottom outlet valves widely used
today.
Both of the Company’s patented bottom outlet
valves are utilized on rail tank cars for the primary purpose of
unloading the contents of the tank. The BOV is positioned at the
lowest point of the tank car so that a full discharge of the tank
can be achieved. They are widely used in the transport of hazardous
commodities such as crude oil, ethanol, chemicals, petrochemicals
and minerals. The new field service trial will initially
concentrate on molten sulfur and asphalt applications.
The key proprietary design elements for both of
the Company’s low profile and new standard profile BOV is the use
of a more reliable, longer wearing, scratch-resistant and
non-corrosive ceramic ball (stainless steel scratches and pits with
use causing the BOV to leak). Also featured is a seat protecting
ceramic wiper that allows for seats to remain non-embedded of any
debris and impurities collecting at the bottom of the tank car to
prevent valve operating seat leaks. Kelso’s new standard profile
BOV like the Company’s low profile BOV meets the newly adopted
handle actuating requirements established by the AAR. As with all
Kelso products the BOV equipment is completely manufactured in the
USA and fully machined (fabricated) - Kelso does not use castings
as our competitors do.
Kelso’s BOV development associates have agreed
to meet all the requirements of the AAR field service trial testing
for the standard profile BOV. Their participation will assist in
the completion of regulatory processes to gain full AAR approval.
An AAR approved BOV is expected to improve the potential of market
adoption by numerous customers.
James R. Bond, CEO and President of the Company
comments that, “Over the past several years the Company has
developed a much clearer understanding of customer needs and
improved our AAR relationships. The Company continues to invest in
our BOV program along with the Company’s new ball valve to
eventually capitalize on new revenue sources. The timing of new
revenue streams remains conditional on completing AAR testing
requirements and final approvals. The field service trial process
is complex, time consuming and very expensive with no guarantee
that new equipment will be adopted by customers. During the BOV
field service trial we anticipate that the Company will be allowed
to legally sell some valves commercially to support customers’
needs generating some early revenue streams. If and when fully
adopted by the rail industry the standard profile BOV could
significantly improve the Company’s consolidated financial
performance.”
About Kelso Technologies
Kelso is a diverse product development company
that specializes in the design, production and distribution of
proprietary service equipment used in transportation applications.
Our reputation has been earned as a designer and reliable supplier
of unique high-quality rail tank car valve equipment that provides
for the safe handling and containment of hazardous and
non-hazardous commodities during transport. All Kelso products are
specifically designed to provide economic and operational
advantages to customers while reducing the potential effects of
human error and environmental harm.
For a more complete business and financial
profile of the Company, please view the Company's website at
www.kelsotech.com and public documents posted under the Company’s
profile on www.sedar.com in Canada and on EDGAR at www.sec.gov in
the United States.
On behalf of the Board of
Directors,
James R. Bond, CEO and President
Legal Notice Regarding Forward-Looking
Statements: This news release contains “forward-looking
statements” within the meaning of applicable securities
legislation. Forward-looking statements are indicated expectations
or intentions. Forward-looking statements in this news release may
include, without excluding other considerations, that our standard
profile BOV can significantly diminish the expensive chronic
performance problems that are persistent in the bottom outlet
valves in wide use today; that participation of our BOV development
associates will assist in the completion of regulatory processes to
gain full AAR approval; that an AAR approved BOV is expected to
improve the potential of market adoption by numerous customers;
that the timing of new revenue streams remains conditional on
completing AAR testing requirements and final approvals; that
during the BOV field service trial we anticipate that the Company
will be allowed to legally sell some valves commercially to support
customers’ needs generating some early revenue streams; and that if
and when fully adopted by the rail industry the standard profile
BOV could significantly improve our consolidated financial
performance. Although Kelso believes its anticipated future
results, performance or achievements expressed or implied by the
forward-looking statements and information are based upon
reasonable assumptions and expectations, they can give no assurance
that such expectations will prove to be correct. The reader should
not place undue reliance on forward-looking statements and
information as such statements and information involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Kelso to differ
materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking statements
and information, including without limitation that our standard
profile BOV may not significantly diminish the expensive chronic
performance problems that are persistent in the bottom outlet
valves in wide use today; that we be unable to complete the
regulatory processes to gain full AAR approval for our BOV; that
the risk that railroad safety regulations and other regulatory
approvals may change, be delayed or cancelled; that the field
service trial process is complex, time consuming and very expensive
with no guarantee that new equipment will be adopted by customers;
the Company’s products may not provide the intended economic or
operational advantages; we may be unable to grow and sustain
anticipated revenue streams because of competition or decreased
interest in our products; orders may be cancelled and competitors
may enter the market with new product offerings which could capture
some of our market share; costs of production may increase
affecting our EBITDA; we may have to incur debt to keep up with
costs and/or technological or product development expenses; and our
new equipment offerings may not capture market share as well as
expected. Except as required by law, the Company does not intend to
update the forward-looking information and forward-looking
statements contained in this news release.
For further information, please contact:
James R. Bond, CEO and President |
Richard Lee, Chief Financial Officer |
Corporate Address: |
Email: bond@kelsotech.com |
Email: lee@kelsotech.com |
13966 - 18B AvenueSouth Surrey, BC V4A 8J1www.kelsotech.com |
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