Austin tech startup Yan Engines raises $2 million

May 29, 2014
Austin American Statesman

Yan Engines, an Austin startup that is developing engine fuel economy technology, has raised $2 million to take its retrofitted diesel engines into new markets

Founded in 2006 by power generation veteran MJ Yan, the company moved to Austin in 2006 to join the Austin Technology Incubator and work with the University of Texas Engines Research Laboratory

Yan Engines is developing a differential stroke cycle engine, which it says is 80 percent more fuel efficient than existing engines

The company’s first customer is the U.S. Marine Corps, which signed a $1.6 million contract for Yan Engines to design and build a fuel efficient engine for heavy-duty diesel military applications. Currently, it costs about $400 per gallon for operational vehicles in Afghanistan. The Yan project, which is near completion, resulted in performance that is about 50 percent more fuel efficient than what is currently in use, officials said

The engine is undergoing final testing before pilot tests and deployment by the U.S. military in trucks in the field

Yan Engines received the new funding from New Energy Holdings, a European private equity firm that is working with the company on exploring commercial applications

Currently, the company is focusing engine fuel efficiency in the shipping industry, where players such as shipping giant Maersk spend $6 billion annually on fuel alone

Yan Engines also is exploring fuel efficiency in power generation engines, especially in Asia, where power is produced by diesel generators in smaller municipalities that are not attached to power grids

The six-person company recently graduated from the Austin Technology Incubator and moved to new offices in North Austin

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