Memo Berriochoa, CEO of Transliquid Technologies, talks about their product, Nox Guard, for the trucking industry.
Please excuse any typos in this hasty transcript.
Jay Curry: We’re back. Hello, Texas. Welcome to Texas Business Radio. I’m Jay Curry, your host for this segment. Mr. Matt Register had to step out but he promised he’d be right back so we’ll catch him in the next segment. We’ve got a real special program going but before we get started, I want to remind you to go to TexasBusinessRadio.com. I promise you it’s all there. This is our 112th program plus so we’ve interviewed over 450 people, pushing 500. Every single one of them are at TexasBusinessRadio.com in high definition video. You want to go there.
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Memo Berriochoa: Right. Memo Berriochoa. Nice to meet you.
Jay Curry: Wow. I can’t believe I even got close. Memo is the president and founder of Transliquid Technologies. They have a very special product called Noxguard. We’re going to talk about that a little bit but before we talk about the product, tell us what Transliquid Technologies … What’s the company all about and how did it get started?
Memo Berriochoa: It got started in 2010, Jay, and thank you very much for inviting me. This is a very exciting journey that we’ve come about. It started in 2010 with EPA launching the regulations for the new emissions on the new diesel engines. When we learned that this was going to happen, we brought some capital onboard and started the company, family-owned, made in Texas and very happy to be a part of this.
Jay Curry: You had some trucking background before this so it wasn’t like it’s all new but you saw this coming in and you saw the impact it was going to be on your industry, particularly the trucking. but now a lot more.
Memo Berriochoa: Right.
Jay Curry: We’ll talk about that in a moment. You put the company together and in eight years, you’ve built it up. Very nice.
Memo Berriochoa: That’s right. That’s exactly right.
Jay Curry: 20 employees and almost the whole family involved in it.
Memo Berriochoa: Yeah, we’re very excited.
Jay Curry: Tell us now about Noxguard. What the heck is that all about?
Memo Berriochoa: Okay, so basically, Noxguard is our brand. Nox is the stuff that you take away from the fumes in the new trucks to make the emissions meet the EPA standards is what that is. Noxguard is our brand that we created back in 2008. It comes in jugs like this one that you see right here. It come in drums. It comes in totes and we take it in bulk with our own trucks to the gas stations where it’s dispensed.
Jay Curry: What’s the purpose? Why are we making this?
Memo Berriochoa: We’re making this to clean the environment. It’s mandatory so EPA regulates it. There’s a 2010 regulation so every truck that’s built since that time and on is going to use this technology.
Jay Curry: It’s built in to use it.
Memo Berriochoa: Right.
Jay Curry: From 2010 to today, ’18, eight years, the manufacturers are required to have a facility for this to be in the diesel engines.
Memo Berriochoa: Right.
Jay Curry: How does that work? Is it going inside the engines? Is it mixing with the gas? What is it doing?
Memo Berriochoa: Great question. What happens is you have two caps now. You used to have one cap for your diesel and now you have a separate tank with a blue cap and that’s where diesel exhaust fluid goes at a ratio of about 5% versus your diesel. For every 100 gallons of diesel that you consume, you’re going to consume five gallons of DEF. It sprays in the fumes. It doesn’t mix with the diesel. It goes to the catalytic converter. It’s spraying with the fumes and it cleans the fumes before they go out that pipe on that truck.
Jay Curry: Okay, and this is for diesel engines to keep them clean. You said 99.9?
Memo Berriochoa: Yes, 99.9%.
Jay Curry: Wow. You can read that right out of the-
Memo Berriochoa: Out of the pipe. That’s exactly right.
Jay Curry: Wow. It wasn’t that way when I was growing up, let me tell you, Memo. That’s good, though.
Memo Berriochoa: Yeah, it is. It really is. We’ve got to do something, but it’s really, Jay, the purpose is to make these diesel engines more efficient so you get more miles per gallon. You burn more efficiently but now you contaminate more. You’ve got to take care of the environment.
Jay Curry: Right.
Memo Berriochoa: It balances out.
Jay Curry: Best of both worlds. It’s more efficient for the car to run that way, too?
Memo Berriochoa: Yes.
Jay Curry: Well, there you go. It pays for itself. I have, say, a diesel truck or I have even a diesel car. Where am I going to go get my Noxguard?
Memo Berriochoa: You can get it at the store in this presentation. You can get it at the truck stop, at the gas station. You can get it right there. The new pumps dispense both diesel and now they dispense diesel exhaust fluid.
Jay Curry: I guess if I had a diesel car, I should probably know this because as soon as I buy it, they’re going to tell me, by the way, you’ve got to carry this and you’ve got to keep it in it.
Memo Berriochoa: Right. You’ve got to keep it up or now your truck stops. Same as diesel. You have a meter inside your new car or your new truck, so there’s going to be a light. The big trucks, they actually have a diesel meter. It goes down and when that truck runs out, it’s going to stop so you’ve got to make sure you have emergency bottles and you’ve got to keep that tank full.
Jay Curry: Yes, folks, if you go to TexasBusinessRadio.com and you look at the video, you’ll see the container we’re talking about. This is 2-1/2 gallons. If I had a car or a small truck that I drove around just for the family and for the farm, I’d probably have a bottle or two of this right on the vehicle somewhere, right?
Memo Berriochoa: Yeah.
Jay Curry: It’s not flammable? There’s no danger at that point?
Memo Berriochoa: Not at all, Jay. My neighbor had an RV, a diesel RV and he gets it for free because he’s my neighbor. I just drop him a couple of bottles and he keeps them right there.
Jay Curry: Talk to me a little bit … If it’s not flammable, one of the things that you said during the break is that it’s easily contaminated, though.
Memo Berriochoa: Yeah. It’s regulated by the American Petroleum Institute, Jay, and what happens is it’s very easy to contaminate. What we do is we have to trace it. The API makes sure that we trace every single gallon that we produce to the batch. That way, if somebody has an issue, they can come back to us and we send all our product to the lab and we have all our testing done through a third party lab. We make sure that we comply with the API and that our product is safe for all use.
Jay Curry: Now when you described, before we came on, how it’s made, it’s water combined with fertilizer? That sounds like a weird mix, but that’s sucking all the bad stuff out.
Memo Berriochoa: Right. Well, basically, it’s two products, deionized water, which is … Imagine water you take every single mineral out and it’s just clear water. That’s why it comes blue. Some of these products are called Add Blue and something blue because it turns blue because the water is so pure. The other product is urea. It’s an automotive grade urea. Urea is nothing else but a fertilizer. It comes in a [inaudible 00:07:42], so you mix it. You mix those two and then you come up with diesel exhaust fluid.
Jay Curry: Again, that’s not going into the engine. That’s going into the catalytic converter, which is then catching the fumes coming out and really, drawing them out. Is it keeping it clean, though? Where does the bad stuff go?
Memo Berriochoa: That’s a great question. It precipitates in the pan on the catalytic converter and every so many miles, there’s a regen process. That heats up like your oven gets cleaned. It heats up that pan and it’s going to cook the rest of it until nothing’s left over.
Jay Curry: Fantastic. Interesting. You also mentioned that the automobile dealers, particularly I guess Volkswagen, had some problems with this. Was it specifically this type of thing that they were trying to … Was it new technology they were coming up with or what?
Memo Berriochoa: Well, what happens is there are two ways, the SCR, which is the catalytic converter system or the EGR. Volkswagen tried to go around it and they did an EGR but when you went to do your tests, they took the computer so it would cheat.
Jay Curry: Aw, so that’s just literally programming a cheat.
Memo Berriochoa: What happened now is they caught them and they’ve reversed it and they’re going to have to go to this system eventually.
Jay Curry: This tells me, though, that you have to track every single what? Gallon? Every single container? Every single-
Memo Berriochoa: Batch. Every single batch-
Jay Curry: Every single batch.
Memo Berriochoa: That we produce, yes. It’s tied to a number on this bottle. Yes.
Jay Curry: Holy smoke! If it’s on the bottle, but if you’re taking a truck, it’s on the truck and if there’s any problems at any point, you’ve got to have a history all the way back. Amazing.
Memo Berriochoa: Yep.
Jay Curry: Well, it’s a great product. It’s called Noxguard, right?
Memo Berriochoa: Right.
Jay Curry: I get it wherever?
Memo Berriochoa: You get it through our distributors here in Texas. You can find it all over Texas. You go to Noxguard.com and you can make sure you look at all our blogs. We have a ton of information for all your listeners so they can learn everything they need to know about Noxguard.
Jay Curry: Okay. Tell us where they go. They go to your website, which is-
Memo Berriochoa: www.Noxguard.com, N-O-X-G-U-A-R-D.com.
Jay Curry: There you have it, folks. Very interesting, Memo. Thank you for being with us. It’s a fantastic story. Congratulations on a great business and how you’ve built it up in just eight years to be a real substantial Texas business.
Memo Berriochoa: Thank you, Jay. Thank you.
Jay Curry: All right, folks. That pretty well wraps it up for this segment. We’re going to have to go pay a few bills. I’ll see if I can get a rope and get Matt Register back in the studio. How would that be? We’re going to go pay some bills. Don’t go away. We’ll be right back.
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In addition to hosting "Texas Business Radio," Matt is an investment banker and serial entrepreneur from Montgomery, Texas. He is the owner of RREA Media and Register Real Estate Advisors and a Managing Director and Principal at Corporate Finance Associates. He has a BS from the United States Military Academy at West Point and an MBA from Rice University in Houston. You can read more about Matt HERE.