Iowa Lakes Community College

Excitement building at HEC

The noise that can be heard during the day at the old armory in Algona is the roar of progress.

The first all-Oxx Power engine by the Hydrogen Engine Center is nearly halfway through its 300 hour run test. For eight to 10 hours a day, five or six days a week, the first engine off HEC’s production line is being pushed to test the components.

It’s running, proof of how serious HEC is about it’s goal to fill the void left by Ford, General Motors and Chrysler when they moved out of the industrial engine market. Built to replace the Ford F300 engine, in form, fit and function, the 4.9L Oxx Power Engine will be used in generators, forklifts, airline ground support vehicles, tractors and buses.

“This is our first new block engine. That’s an important milestone — it’s not easy to cast an engine block. There are a lot of things that need to go right,” stated Robert Mendlesky, director of engineering for HEC. He retired from Ford on January 1, 2006, and started at HEC the next day. “There are 120 hours on it, and it’s done very well. We’re very excited about that. When we get 300 hours on it we’ll feel comfortable selling it.”

With a few design changes enhancing performance, the engine should meet the Environmental Protection Agency’s 2007 emission standards. 

While waiting for the results of the dynamometer testing on its own engine, HEC has been refurbishing the Ford F300 engines, using Oxx Power parts, for industrial customers that were left without resources for engines or parts after Ford pulled out of the industrial engine market.

“Ford is working on the new vehicle engines — aluminum, high-tech. We don’t need all of that on the industrial side. We need a robust, cast iron block with new technology to keep it clean,” Mendlesky added.

Founded by Ted Hollinger, a retired engineer for Ford Motor Company, HEC was incorporated in Algona in 2003 and in Canada in 2005. In August  2005, HEC merged with Green Mountain Labs and became a publicly traded company under the name Hydrogen Engine Center, Inc.

The Canadian location focuses on software and the electronic control box for the engines. There are salespeople in Oregon working on government and military sales, and much of the generator sets are built in a location in Ohio.
Algona is the main production facility, with research and development being done at the old armory location.

Even before production of the new 4.9L Oxx Power engine, HEC has outgrown two locations — the old armory and its location on East Fair Street.

“This location looked huge when it was empty,” explained Kathy Meyer, HEC’s quality assurance manager. “Now we need more space.”

Currently HEC is adding a 30,000 square foot storage building, and plans are in the works for the main production building to be at least doubled in size. There is potential for the main building to grow to 200,000 square feet.

Beyond filling the void left by Ford, GM and Chrysler, another driving force behind the expansion is the nation’s current focus on reducing reliance on fossil fuels. Rather than diesel, the engines HEC are developing can run on multiple, ecologically friendly fuel sources. They are the only company in the world currently manufacturing industrial engines that can run on multiple alternative fuels.

“We’ll be able to offer all the fueling capabilities, running on all of the clean fuels,” added Mendlesky. “That’s what’s exciting — these are all clean. They don’t pollute.”

Propane, ethanol, natural gas, hydrogen, methane and digester gas from landfills — even using ammonia is being researched — and many different combinations of renewable fuels. It’s all a matter of calibration.

“We don’t care what the fuel is, other than we want to make sure that when we use that fuel we can calibrate the engine so we don’t create greenhouse gases,” added Mendlesky.

In addition to offering the refurbished Ford F300, the new 4.9L Oxx Power and the generator sets, HEC is looking to introduce a 7.5L Oxx Power and a small 2.45L Oxx Power engine. The larger engine is designed to be a form, fit and functional replacement for the Ford 460 cubic inch V8. Production is expected to begin early 2007.

The 2.45L, called the Mini Oxx, will be the first engine unique to HEC. It is designed for small industrial applications. It will be in production sometime 2007.

“Starting a new product and a new business is always very exciting,” explained Mendlesky. “We’re going to have a pretty complete product line all the way from the smaller displacement to the very large 7.5 V8.”

According to Hollinger, HEC hopes to be producing at least 1,000 of the 4.9L Oxx Power each month by December.

Brad Van Horn, an engine distributor with Northern Power Productions based in Minneapolis, Minn., estimates that American Airlines has nearly 9,500 vehicles using the Ford F300 that will need to be converted over the next 10 years. Other engine applications that he is excited about include generators and irrigation systems in Nebraska.

Van Horn’s territory includes the Dakotas, Minnesota, Nebraska and Iowa.
“I think it’s great that the company doing this is in the heart of my sales territory,” Van Horn explained. “These guys know what industry needs in an engine, and it’s exciting to have them focusing on clean fuels.”

While the nation reads Associated Press stories on the Hydrogen Engine Center’s expansion, closer to home are the faces — some familiar, some not — that tell the real story of what HEC means to Algona. Currently there are 17 employees in Algona. When full production is reached, it is estimated to employ more than 200 people.

“I’m having a blast,” added Robert Mendlesky, the director of engineering. He retired from Ford in January and moved to Algona that same month to take over engineering for HEC. “I’m having fun again.”

Joe Lewis is the vice president in charge of sales and marketing for HEC. He started in February.

“If you had asked me a year ago what I wanted to do — I would have described this job,” stated Lewis. He moved from south Florida to work at HEC.

Along with bringing in experienced talent from outside the state, HEC has given area residents the chance to stay in Algona while making a difference globally.

“I could see the benefits of flexible fuels, and it’s the wave of the future. I’m glad to be here and everyone is just great to work with,” explained Kathy Meyer, HEC’s quality assurance manager.

She had worked at Snap-on for 20 years. It will be her job to help new employees get comfortable on the production line and verify the product once finished.

“This will be easy to teach. The guys had me put one of the engines together to prove that I could do it,” Meyer added.

 “It’s been a team effort,” stated Dean Schiltz, a member of the research and development team. “Everyone involved in this has taken a chance and we’re proving it can be done in Algona, Iowa. This is a big step for everyone.”

Schiltz, a native of West Bend, has been working for HEC nearly two years part-time and came on board fulltime in October. For him, the move from working on gasoline engines to the flex-fuel products to be offered by HEC was the biggest draw.

“I took this job for a challenge,” Schiltz added. “What I’m doing here with this technology can make a difference for people on a global scale.”

Reducing reliance on fossil fuels is evident, even in the way the heating is set up for the factory. Currently water heaters provide the hot water heat for the concrete factory floor, but once the production line is in full swing, the by-product of testing the engines on hydrogen fuel is hot water, which will then be used to heat the factory.

 


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Kossuth County Economic Development Corporation