? Key Industry Engineering Group - GDiesel is following the new Euro-6 standard in the EU

The Industry

Competition

Leading Market Players

All top market leaders (e.g. BP, Shell, OMV, Agip, Total...) offer their premium fuel products (e.g. V-Power, Ultimate, Suprime...). Pricewise they are all positioned at the tip of the range with a typical mark up of around 10 % as opposed to regular fuel. All these fuels come from the same "pipe" (i.e. refineries); however, each brand has its own additives recipe. Based on its energy efficiency and environmental parameters the GDiesel® is a superior product, which bears no additives (and their associated cost).

Furthermore, following the introduction of the new Euro-6 standard (CO2 emissions of up to 120 g/km) in the EU all member states should abandon sales, registration and approval of vehicles that do not meet the new standards (except for vehicles that meet approved social needs and categories N1 and N2). On part of the automobile manufacturers, the Euro-6 certificate requires introduction of improved new technologies (e.g. engines, filters, recycling) all of which require serious investment expense.

This problem can also be addressed by the diesel producers, i.e. the refineries. However, currently existing technological solutions are costly, and related expenses will need to be either transferred to the end-users or will need to be mitigated by governments and/or the EU budget (e.g. tax breaks and alike incentives).

The Project's technological solution, via patented technology for the production of the GDiesel® brand, proposes to solve the problems of regional consumers, related to the introduction of the new Euro-6 standard in the Czech Republic as a first step, before expanding in the rest of the EU. With its modest investment requirement and short-term payback the Project offers undeniable competitive advantage.

Diesel Fuel

Back in 1996, European countries switched to the production of diesel fuel with a sulfur content up to 0.05% and in 1999 this value was further reduced to 0.035 % and even 0.005 %. In Sweden, for example, the standard grade diesel fuels contain between 0.001 % and 0.005 % sulfur. These fuel standards also limit the aromatics content (e.g. to 20 % and
16 %), and more recently – the content of polycyclic aromatic hydrocarbons (PAHs), – as the most toxic compounds.

The search for alternative raw materials for diesel fuel production is ongoing in many countries.

Currently, in addition to crude oil, the following are being used for summer type diesel fuel production: heating oil (which by its fractional composition is heavier and denser); expired diesel (contaminated with microorganisms or having signs of separation); waste oil and other petroleum products.

For the production of winter diesel, feedstock may be unstable gas condensate - liquid mixtures of high-boiling hydrocarbons isolated from natural gas. Winter diesel fuel can also be obtained by further processing the summer type diesel. In such case, summer diesel is subjected to secondary processing at temperatures up to 340 °C, lowering its viscosity and improving frost resistance. The cost of diesel produced from alternative raw materials, is almost equal to the cost of conventional fuels. Moreover, processing of ready products is technologically easier, allowing for extensive use of this method.

Conclusion

The technology proposed in this Project differs significantly from the above-mentioned alternatives by the low capital costs required and its Product with improved environmental and physicochemical properties that significantly reduce costs for companies and individuals using it. It is here where KIEG and its partners from ARC offers a viable alternative - the GDiesel® Product.

Rights Protection

The GDiesel® Product, the production process and related are patented in the USA (nationally and internationally) and duly protected via a set of confidentiality and license agreements with various partners and clients.

The Opportunity

The Project proposed addresses an emerging niche in the diesel fuel market being widened by the ever more stringent environmental requirements introduced in the EU (e.g. Euro-4,-5,-6). The GDiesel® Product provides for direct benefits to all involved in the diesel sector – fuel producers (via better quality and increased quantity), sellers (via improved margins), buyers/end-users (via improved fuel efficiency), as well as the public at large (via lowered emissions).