MARKETING
Oxy-Catalyst Gears for Auto Exhaust Market Timing depends on California's approval of exhaust control devices, but company is set to make converters and catalyst When at least two automobile exhaust control devices are approved by California, Oxy-Catalyst is set to move rapidly into the market. Four devices —three of them catalytic and one an afterburner—have been accepted by the California Motor Vehicle Pollution Control Board (CMVPCB) for testing (C&EN, April 23, page 30). But the California air pollution law requiring installation of exhaust control devices on motor vehicles takes effect only after one year from the date of acceptance of at least two devices. Oxy-Catalyst has blueprints ready and expects it could go into full catalyst production within nine months should it get approval of its device. Its production of the catalytic converter shell and accessory equipment could hit an annual rate of 1.5 million units within a year, including the time required for tooling and production tests. The law is clear about the performance standards expected from the devices but less clear on cost requirements. All the applicant companies know now is that "the purchase or cost of installation of such a device shall not constitute an undue cost burden to the motorist." At least 29 companies think that they can qualify, although CMVPCB has rejected 19 applications for evaluation. Oxy-Catalyst believes it can meet the installation cost requirements, although it will make no specific claims until the board sets cost standards. The company does say, however, that operation costs for its catalytic converter are less than 1/2 cent per mile. For the average driver, annual cost will run between $30 and $50. Oxy-Catalyst says that test data based on continuous infrared analysis for hydrocarbons, carbon monoxide, and carbon dioxide indicate that it can meet the California requirements. It has developed a new system which, it claims, is a major advance over the General Motors-Oxy-Catalyst 36
C&EN
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EXHAUST TEST. Eugene J. Houdry, chairman of Oxy-Catalyst (left and rear), and Norman Troxell (left) test Oxy-Catalyst's exhaust control system for autos. Oxy-Catalyst says operation costs for its converter are less than V2 c e r | t P e r m i ' e
development described in March at a Society of Automotive Engineers meeting in Detroit (C&EN, March 26, page 52). Although Oxy-Catalyst does not reveal what the specific modifications in its new system are, it claims they extend the converter's life at least to the 12,000-mile basic requirement laid down by CMVPCB. Fast Growing Market. During the first year after the law takes effect, California will need 1.5 million units— about 800,000 for new cars and 700,000 for used cars. If the California board moves to accept the devices after about March, installation on new cars, because of tool-up problems on the assembly lines, will have to be made by dealers. If the decision comes before March, installation on new cars, at least, can be made at the factory. In the second year about 2.3 million units will be required; 3.5 to 4 million will be needed in the third year. Then in the fourth year and thereafter, the number of units needed will be equal to the number of new cars sold in California, currently about 800,000 to 1 million annually.
The converters for compact cars take about 9 pounds of catalyst, those for the larger cars about 13.5 pounds. The weighted average charge is slightly over 12 pounds. Oxy-Catalyst can make about 15 million pounds of the catalyst annually but will probably license other catalyst makers. One reason for licensing other makers is that car manufacturers prefer having more than one source of supply. A second reason is to avoid the strain of having annual production leap from nothing to 30 million pounds then drop to about 15 million pounds. And a third reason is that Oxy-Catalyst, a small company, can get a return on its catalytic system without overextending its capital investments. Marketing Plans. Oxy-Catalyst's plans, based on market studies for the half of the potential market it hopes to win, include the training of authorized dealers for installing and servicing the converters. Oxy-Catalyst also may set up a central system for installing and servicing converters for small dealers, used-car lots, or people who sell cars privately. The central system will also be used to train fran-
California's Market for Car Exhaust Units Will Rise Sharply, Then Drop And Level Out Year After Operation of State's Pollution Law
Millions of Units Needed
First
1.5 (800,000 for new cars, 700,000 for used cars)
Second
2.3 (1.5 million for cars, 800,000 for taxicabs and trucks)
Third
3.5 to 4.0 (1.5 million for cars, all autos not previously fitted)
Fourth and thereafter
0.8 to 1.0 for new cars only
Source: Oxy-Catalyst
chised dealers who Oxy-Catalyst hopes will actually handle the bulk of the installations. The centralized stations, then, would operate at both the wholesale and retail levels. In this way, too, Oxy-Catalyst would act as a competitive control, keeping prices from getting out of hand, particularly from unscrupulous dealers. Servicing of the converters will, Oxy-Catalyst believes, be handled, as are many automotive products, by service stations. It has investigated the feasibility of having large oil companies distribute the catalyst through their chains of stations. Oxy-Catalyst would deal with the parent company, which would service its own stations. No matter which approach is taken, Oxy-Catalyst plans to collect the spent catalyst for reprocessing and to recover metals, particularly lead. To do this, and also to provide for recharging the converters, it has designed simple emptying and filling equipment. But details of methods for collecting the catalyst will have to wait until the converter and catalyst distribution systems are worked out. Until CMVPCB acts, however, the market remains only a potential one. And, should something like the turbine engines field-tested this year by Chrysler Motors come along fast, the market might never develop. The turbine, acting as an afterburner, eliminates in large measure both carbon monoxide and hydrocarbons from the exhaust.
TYPICAL
REACTIONS
CH(0R) 3 +
CH 2 (COOR) 2 —+
CH(OR) 3 +
ROCH =
CH(OR) 3 +
R'MgX — >
CH(OR) 3
R^CO — >
+
CH(OR) 3
N^N
CH(OR) 3 +
ArNH2
ROCH =
C(COOR)2
C H 2 — > (RO) 2 CHCH 2 CH(OR) 2 R'CH(OR)2 R 2 C(OR) 2 R
•
ArNRCHO
Have you ever stopped to speculate on the literally countless reactions the ortho esters can undergo? The above may serve as a hint of their utility in your application. But don't stop here. Take a look at the extensive background chemistry described in the ACS Monograph Chemistry of Aliphatic Orthoesters by H. W. Post, Reinhold Publishing Co. (1943), For more recent information write for our technical data bulletin. *
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KAY FRIES CHEMICALS, INC. ISO Madison Ave. New York 16, New York · MUrray Hill 6-0661 MAY
7, 1 9 6 2
C&EN
37
