SOMS inks deal with NY for engine oil filters

Valhalla, N.Y.-based technology startup SOMS Technologies said today it's gaining traction with its technology that improves the efficiency of engine oil using a secondary microfilter without slowing the flow of oil.

SOMS says its patented microfilter reduces the frequency of oil changes, thereby using less oil and producing less waste. SOMS began selling the product in December, signing on 30 public and private fleets to-date.

"There's been underinvestment in research and development by all major oil filter companies. The reason is simple: Nobody cared," said SOMS CEO Miles Flamenbaum.

"It was extremely inexpensive to change your oil and filter, so it had no material impact for people," he told the Cleantech Group. "It's only been over the past several years that the cost of these materials started to increase and there was a heightened emphasis on environmental responsibility."

The technology was developed by SOMS CTO Norbert Assion to fit into existing engine filtration systems. The technology adds a second filter with smaller pores that captures small particles that would otherwise accumulate and require the oil to be changed.

The system diverts a small amount of oil from the main filter to the microfilter for cleaning before it returns to the main filter and then the engine. The SOMS system takes two to three hours to cycle through all the oil for cleaning but doesn't slow the flow of oil to the engine, which could deprive moving parts of oil.

"We like to think of it like the energy-efficient light bulbs," Flamenbaum said. "It screws in just like the regular light bulb, but it does a better job." 

Today, SOMS announced its biggest deal, a designation as a preferred supplier of engine oil filters for the state of New York because of its affiliation with the New York State Industries for the Disabled. That affiliation comes because SOMS says it uses some developmentally disabled adults to complete its products. The company wasn't able to provide numbers to the Cleantech Group.

The designation means purchasing managers in state, county and local governments are encouraged to buy the filters, and the process requires less paperwork than with non-preferred vendors. But the contract doesn't obligate the government to use the filters.

The potential value to SOMS is unclear but significant, Flamenbaum said. The state alone has more than 18,000 vehicles. The company doesn't make filters for all vehicles but is expanding its product line, which already covers the majority of light-duty vehicles, Flamenbaum said.

SOMS plans to parlay its sales to public and private fleets into a market-wide offering. Already some consumer have begun to purchase the filters on the company's Web site.

The company considers itself a technology play as it outsources all manufacturing. The microfilter wafer is made in Scotland, while other proprietary and off-the-shelf filter components are made in Hong Kong, said Flamenbaum, a former exec in pharmaceuticals and medical devices.

The company's current fleet customers are based in the U.S. and Canada, but Flamenbaum said SOMS plans to target the global market as the company grows.

"That's the beauty of the market," he said. "Cars and trucks are the same the world over."

The U.S. accounts for about 30 percent of the global market, estimated to be 485 million filters a year.

SOMS' filters range from $12 to $27, or about three times the cost of traditional filters. Flamenbaum said the product cuts dramatically down on overall ownership costs by reducing the amount of oil used, the number of oil changes, and the number of filters used.  A vehicle that typically needs the oil changed at 5,000 miles would likely be able to push that back to 10,000 miles, Flamenbaum said.

SOMS has raised venture capital and angel backing in two rounds since the company was formed in late 2006. VC investors include Rand Capital and Advantage Capital.