FuelGems

A Revolutionary Fuel Additive

Company Information

Website:

https://www.fuelgems.com/

Sector:

Energy Efficiency

Location:

Austin, TX

FuelGems has created a revolutionary additive that makes fuel cleaner and more efficient.

This technology is 800x more effective than competing fuel additives and priced up to 20x lower. Furthermore, it decreases emissions and increases fuel efficiency.

FuelGems is in a pilot, or pre-pilot, stage with some of the world’s largest oil, gas, and energy companies. If just the companies currently in the pilot stage convert to paying clients, this would potentially create $50 million in annual revenue for FuelGems.

The company believes it can reach $400 million in annual revenue from just 15 to 20 clients.

By 2050, diesel fuel and gasoline will power 80% of all vehicles. But this fuel is inefficient, expensive, and dangerous.

Fuel creates corrosive effects to a vehicle’s engine. Meanwhile, contaminated air and toxic emissions from dirty fuel cause more than 5 million deaths annually.

FuelGems’ additive provides a solution. While it’s not a replacement for fuel, its additive provides benefits including:

• Decreased emissions: This additive decreases unburnt hydrocarbons by 50%, carbon monoxide output by up to 15%, and Co2 output by up to 8%.

• Increased lubrication: This helps improve the life of the car’s engine and fuel pump.

• Increased efficiency: Drivers can conserve fuel, and earn more miles to the gallon.

FuelGems’ team consists of six Ph.D. scientists. These members have extensive experience in chemical engineering, nanotechnology, electro-chemical engineering, physics, chemistry, and automotive engineering.

To create its additive, this team developed a groundbreaking plasma generator that creates powerful carbon-based nanoparticles. These are combined with gasoline, or another solvent, and added to fuel.

FuelGems believes its nanoparticles are safe for the environment and will eventually be successfully registered with the EPA.

This additive has been tested on engines at multiple research facilities and in over 1 million miles of real-world driving.

Here’s what makes this additive so special: Just a micro-dose of 1 to 5 grams is needed per 260 gallons of fuel. Some standard fuel additives require anywhere from 200x to 800x more for the same amount of fuel.

Furthermore, FuelGems’ additive comes at a fraction of the cost of its competitors (3x to 20x more affordable) due to its manufacturing process.

The end result? Never-before-seen levels of savings and return on investment for the fuel industry.

The additive is easy to apply for anyone who consumes fuel. For example, it’s:

• Easy for gas stations: Simply add it to large fuel storage tanks.

• Easy for refineries: Simply add it during the refining process.

• Easy for drivers: Simply add it to the fuel tank before filling up.

To generate revenue, FuelGems will license its technology, and sell its additive to refineries, gas station operators, and fleets.

As mentioned, it’s currently in pilot stages with three notable companies. These include:

• OMV: An Austrian oil and gas company with $20 billion in annual revenue.

• Ovostar Union: A farming company with $100 million in annual revenue.

• And a confidential fleet operator with $25 billion in annual revenue.

Pre-pilot stage clients include large oil and energy companies BP, PKN Orlen, Marubeni, and Suncor Energy.

In addition to its potential revenue from these early customers, FuelGems estimates that it could generate $27 million in annual revenue from each refinery it brings on. There are 220 refineries across the U.S., and Europe, presenting a $5.9 billion opportunity.

The company estimates it could bring in $12 million in annual revenue from each gas operator (ones with 500 stations). There are 220,000 across the U.S. and Europe, presenting an additional $2.6 trillion opportunity.

Eventually, FuelGems aims to become a prime acquisition target. According to data from Crunchbase, a research company focused on private equity, fuel additives were involved in 120 recent deals totaling more than $200 billion.

Notable acquisitions include Gulf’s $1 billion deal to buy Houghton, a global supplier of metalworking fluids; and Flint Hills’ $415 million acquisition of Huntsman, a commodities company.

Team Background

Timothy Rose - Automotive Engineer

Timothy is a materials scientist with more than 20 years of experience. His areas of expertise include biofuel process equipment design and manufacturing, and biodiesel chemistry.

He began as a production technician with Goodfellow Cambridge Limited, a chemical supply company. From there, he spent three years as a researcher with British Gas, a utilities company. While there, he conducted research into combined heat and power systems, and performed analysis on various mechanical components.

Notably, he spent 22 years at Cranfield University, serving as a research fellow, and later a senior research fellow, in the school’s Materials Engineering department. During his time there, he focused on surface chemistry and materials science with the goal of producing renewable liquid fuels.

Timothy holds a Bachelor’s degree in Materials Engineering from Coventry University and a Ph.D. in Surface Science and Engineering from Cranfield University.

Jacek Jasinski - Nanotechnology Scientist

Jacek has an extensive background in the energy research field.

He began his career as a faculty member at Warsaw University, where he taught physics. After that, he became a post-graduate researcher, and later a research scientist, at the University of California, Merced.

Most recently, Jacek spent 12 years as a team leader with the Materials Characterization Group at the Conn Center for Renewable Energy Research. While there, he studied the relationships between the structure, chemistry, and physical properties of various technological materials.

He earned a Master’s degree and Ph.D. in Physics from the University of Warsaw.

Kirill Gichunts - CEO

Kirill has guided over 15 startups throughout his career, and achieved two successful exits.

Most recently, he was Co-Founder & CEO of H2 Energy Renaissance, an energy company using nanotechnology to produce hydrogen. Prior to that, he was a managing partner with Eastlabs, a venture capital firm.

He gained earlier financial experience as Director of M&A with KBC Securities, an investment banking company. Before that, he was an investment banker with Raiffeisen Investment AG, and a senior associate with Deloitte, a management consulting company.

Prior to this, Kirill was a founding member at inFreeDA, a communications company acquired by AT&T. Before that, he was an investment analyst with Global Asset Capital, and began his career as a strategy consultant with United Airlines.

He studied Business and Political Economics at the University of California, Berkeley.

Dima Vynnichenko - Scientist

Dima was a research scientist at the National Academy of Sciences of Ukraine, where he also earned his Ph.D. in Engineering Sciences.

While there, he earned multiple awards, including an award from the Government of Ukraine. He also authored nearly 70 publications.

Irina Nazarova - Scientist

Irina is an electrical engineer who has worked at various research centers throughout her career. She’s received four awards for scientific achievements and authored 35 publications.

She holds a Ph.D. in Engineering Sciences from Kyiv Polytechnic Institute.

Raising
$100K
Committed
$731K (731%)
Min. Investment
$100
Deal Type
Title III
(For all investors)
Offering Type
SAFE
Finance History
  • $50K
    2019-09-01
    Unknown
    (Priced Round)
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