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                       NEWS RELEASE FROM THE

                   CALIFORNIA ENERGY COMMISSION


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FOR IMMEDIATE RELEASE: March 31, 1995



             COMMISSION-FUNDED PROJECT GOES COMMERCIAL


Fleet operators can now easily convert vehicles from gas or 
diesel to compressed natural gas fuel, thanks to the commercial 
success of a vehicle conversion system developed with funding 
from the California Energy Commission.

The easy-to-install CNG fuel conversion system, a project of 
Baytech Corporation of Los Altos, California, makes the most of 
existing emission control systems of a 4.3 liter General Motors 
engine. Only a minimum of additional electronics is required to 
convert vehicles to natural gas power.

Baytech won funding of almost $67,000 in 1993 from the Energy 
Commission's Transportation Energy Technologies Advancement 
Program to develop and demonstrate the system.  As a 
demonstration vehicle, Baytech employed a UPS delivery van 
with 35-46 miles daily route in San Francisco.

Pleased with the fuel efficiency of the demo van, UPS has 
signed an agreement with Baytech for delivery of 104 kits to 
its San Ramon Package Center. In its most extensive fuel 
conversion effort in the United States, UPS will switch its 
entire van fleet in the Tri-Valley corridor of San Francisco 
Bay Area from diesel to natural gas.  The UPS vans will have a 
range of 175 miles on two natural gas cylinders.

"The fuel savings pleased UPS management," says Baytech 
President Rebecca J. Royer, "and so the company that prides 
itself with running the 'tightest ship in the shipping business' 
decided on a fleet-wide conversion."

The UPS purchase makes the Baytech project the first of five 
funded by the Commission's TETAP program to achieve commercial 
triumph.  

The program co-funds near-term (three to five years) research, 
development and demonstration of a wide variety of vehicles 
and fuel technologies.  Its long-term goal is to help bring to 
the marketplace cost-effective transportation technologies that 
reduce air quality problems, are energy efficient and will 
improve fuel economy and diversity.

TETAP moneys come from a federal escrow account paid by oil 
companies that overcharged consumers in the 1970s.  TETAP 
awarded funds are repaid only if the technology becomes a 
commercial success and generates sales.

"The Baytech project underscores the Commission's commitment 
for commercializing advanced transportation technologies that 
provide fuel flexibility, efficiency and environmental benefits," 
stated Energy Commission Vice-Chair Sally Rakow. "Such a project 
also contributes to the increased use of an inexpensive domestic 
fuel source -- natural gas."

Rakow said Baytech's CNG retrofit pack will help reduce the 
capital cost of converting CNG vehicles. "This makes for a 
cost-effective alternative as companies seek clean transportation 
fuels to meet emission standards," she added.


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For further information, contact:
Rebecca J. Royer, President, Baytech Corporation (415) 949-1976

Claudia Chandler
Assistant Executive Director, Energy Commission (916) 654-4989



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