“Their team and product will change the world when it comes to using gasoline and diesel,” said Volodymyr Khmurych, COO of holding company UFuture and lead angel investor in FuelGems. “I believe the company has incredible growth ahead and I am very excited to get in with FuelGems at an early stage and to be the lead investor in this deal.”
The majority of the new capital for the nanotechnology startup business was generated through WeFunder and backed by FuelGems supporters like Khmurych. Outside of the fundraising campaign, which raised $843,690 from 1,237 investors, the startup company found additional support. Startup accelerator Sputnik ATX provided a primary investment in the nanotechnology business, investing $50,000 before the campaign, in addition to another $35,000 during the financing for a total of $85,000.
Decreasing Emissions and Increasing Efficiency
FuelGems was founded by serial entrepreneur and investor Kirill Gichunts, who brings with him years of experience not only with startups but also with the cleantech and energy industry. Prior to founding the nanotechnology startup business, Gichunts was a co-founder and CEO at H2 Energy Renaissance, a startup company focusing on sustainable energy with the production of hydrogen generators. With his newest startup business, Gichunts is pivoting from producing clean energy to improving existing sources.
FuelGems uses carbon-based nanoparticles to improve the efficiency and emissions of diesel, gasoline, and biofuels. The nanotechnology business claims that only one to five grams of its proprietary additive is needed to treat 260 gallons of fuel, which will then receive numerous beneficial effects. Up to 50% of dangerous emissions, including unburnt hydrocarbons, carbon monoxide, carbon dioxide, and particulate matter, are cut from the treated fuel. Furthermore, the treatment developed by the nanotechnology startup business is capable of increasing fuel efficiency by up to 9%. This increase is in addition to providing greater lubrication to engines utilizing the fuel, thus extending the life of the system.
Eying Up Potential Partners in the Industry
FuelGems intends to market its product to both companies and retail-level consumers in the fuel industry. The startup company is already in pilot or pre-pilot stages with leading names in the industry, like BP and Suncor. Additionally, the business is already prepared to mass-produce its additive. Utilizing the nanotechnology in gasoline is only expected to increase the cost of the fuel by $0.02, providing oil and gas companies with a cost-effective solution for cutting emissions.
FuelGems expects that its nanotechnology company will generate over $400 million in revenue by its sixth year of operations. Market research projects the global nanotechnology market to reach $2.23 billion by 2025.
About the Author
James White is a Michigan State University graduate with a B.S. in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.