Transcript Taconic Energy Overview NYSERDA Business Development Program Review William Acker June 10th, 2010 Taconic Energy Overview  Save billions of gallons of oil  Eliminate tens.

Taconic Energy Overview
NYSERDA Business Development Program
Review
William Acker
June 10th, 2010
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Taconic Energy Overview
 Save billions of gallons of oil
 Eliminate tens of millions of tons of CO2
 Do it NOW – without changing vehicles, fuel, or infrastructure
Each gallon of bio-surfactant saves 50 gallons of fuel and 1000
pounds of CO2
 Based on sound science and validated in extensive testing
 Unique chemistry
 NYSERDA contracts
 Independent lab testing
 Strong team
 Multi billion dollar market
 Market penetration strategy
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Product
 How it works
 Frictional losses are substantial
 Ability to target site
 Metal affinity and lubricity
 Dose
 One gallon of bio-surfactant
treats 2,000 gallons of fuel
 Benefits
 2% to 5% fuel savings
(3% to 7% with ongoing use)
 50 gallons of fuel saved per
gallon of bio-surfactant
 1000 pounds CO2 reduced per
gallon of bio-surfactant
 Reduce engine wear
Aggregate
United States
Fuel Saved (gal.)
5 Billion Gallons
Fuel Saved ($)
> $10 Billion
CO2 eliminated
50 Million Tons
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Team
William Acker
CEO
 Serial Entrepreneur
 Vast experience in energy sector
James Ketcham
President
 Lead Texaco Fuel Research and Chevron Fuel Additive
Technology
 Expert in performance testing of fuels and additives
Benjamin Kaufman
CTO
 Lead Texaco Fuel Additives Research and BASF Fuel Additive
Business for NAFTA region
 Expert in fuel additive chemistry
Carl Tomik
Product Manager
 25 years of sales experience
 Business-to-business and consumer experience
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Markets
 Vehicle Fleets
 Gasoline portion approx. $100MM, with $10MM entry segment
 After Market Additives
 Gasoline retail
 Specialty retailers (Hypermarkets)
 Regional firms
 Multi-nationals
 Diesel Markets
 Bulk
 Fleets & Military
 Future Carbon Market?
 Price on carbon
 EPA mandates
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Market Strategy
 Launch in US fleet vehicle market in 2011
 Economic savings aligned with purchase decision making
 Create awareness
 Field experience and supply chain scale
 Select international markets
 High fuel cost markets
 Educated consumers
 Domestic specialty retailers (hypermarkets)
 Willingness to differentiate
 Green marketing value
 Broader fuel retailer market
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Competition
 Initially competing against non-consumption
 Detergents
 Restore performance v. improving performance
 Can have large affects in select vehicles
 After-market products
 Different market segment
 High consumer skepticism
 Traditional fuel additive companies
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Taconic Chemistry
Molecule Design Strategy
Lubricity providing Tail
Attachment Point
Polar Head
 Delivered with fuel to site where needed (“silver bullet”)
 Thermally survives on combustion wall, provide friction
modification there and in oil, combusted when not on wall
 Polar head and attachment chemistry matters
 High affinity for metal surface
 Orientation to provide dense packing
 Tail properties matter
 Length, geometry and bulk
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Bio-surfactant Design Considerations
 Environmental
 EPA registered for use in US fuel
o
Substantially similar classification (CHONS)
o
Renewably derived – used in cosmetics/shampoos
 Compatible with commercial handling and distribution
 Cost and Processing
 Derived from inexpensive starting materials
 Special production metallurgy or conditions not needed
 Desired product maximized/waste minimized
 Intellectual property estate being pursued
 Broad patent on class of materials as fuel additivesapplication filed
 Method for use in diesel – application being prepared
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Vehicle Testing
EPA HFET
Taconic Pkwy Road Test
Fleet Test
Standard Dyno Test
“Real World” Road Test
“Real World” Experience
• “Real World” evaluation in
Fuel Economy - C Balance
Taconic Pkwy 30
(95% Confidence Interval)
28.00
4.3% Improvement
28.50
4.6% Improvement
28.00
27.00
Ref. Fuel: E10 Base
26.50
TEA-041
26.00
25.50
27.50
mpg
F.E. (mpg)
27.50
Base-Unadditized
27.00
26.50
25.00
26.00
Fuel
25.50
Ref. Fuel
TEA-041
% Impr.
Fuel Economy via Carbon balance
FET #1
FET #2
FET #3
26.14
26.24
26.60
27.61
27.42
27.55
4.79%
4.07%
4.56%
Base+500ppm TE-041
centrally fueled fleets
• Historical vehicle fuel
economy comparisons for
single sites
• Historical site fuel usage
comparisons
• Engine wear data
comparisons via oil sample
analyses
FET #4 Avg. mpg
26.41
26.35
27.37
27.49
3.88%
4.33%
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Discussion and Thank You
Taconic
Energy
Additive Solutions
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