GreenChek Technology Inc. (GCHK.OB) is the creator of a proprietary, hydrogen-generating system for combustion engines. Its Onboard Hydrogen Generation (OHG) system produces hydrogen, then injects in into a regular internal combustion engine, helping the engine to burn fuel more cleanly and efficiently.

The company’s flagship product is applicable to any internal combustion engine, whether it runs on gasoline, diesel, ethanol, propane or natural gas. Through two years of testing, the company reports that its technology lowers emissions by up to 50 percent, also reducing fuel consumption, increasing horsepower, improving engine life and reducing maintenance costs.

The company has already received 93 applications from potential distribution partners as the company plans to secure 30 regional partnerships in 2010 for its technology.

GreenChek has also designed new ERD technology specifically for locomotive applications, which the company plans on launching in Europe, followed by the United States. This will allow the company to capitalize on revised EPA regulations, and positions the company to take advantage of President Obama’s programs geared at ramping up alternative energy measures to fight pollution.

The company’s proprietary technology, paired with the recent update on its expansion and distribution efforts, recently warranted the company an updated Speculative Buy rating from financial public relations and research firm Beacon Equity Research.

“The new ERD design for locomotives positions GCHK to enter an additional vehicle market with solid revenue potential. New EPA emissions standards for locomotives will likely facilitate a rapid adoption of emission reduction technologies such as ERD in this segment,” the Beacon analyst stated in the report.

The report also notes climbing gas prices and the opportunity clean technology companies have in the changing market.

“Given a long-term outlook that predicts rising oil prices, technology solutions such as GCHK’s ERD system have the potential to rapidly garner market share and support triple-digit revenue growth. We are thus reiterating our Speculative Buy rating for GCHK but reducing our price target to $1.52 to reflect slowed world economic growth,” the report states.

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