Renewable Diesel Fuels:

The Economical and Ecological Advantage

 

Why Now ?

Crude oil is currently about $45-$55 a barrel on the spot market.  The world consumes 100 million barrels of crude oil every day.  Proven reserves stand at about 1-3 trillion barrels, most of which is located in politically volatile areas.  China and India’s expanding economies will continue to drive the demand for petroleum.

“Big Oil” has been reluctant to develop new reserves.  The oil companies have little incentive to develop reserves that could ultimately jeopardize their profit margin.  The dramatic entry of fracking technology and the subsequent increase in US petroleum and natural gas production have caused a 50% decrease in the price of crude oil. At present we can enjoy lower energy prices. But ultimately we can anticipate the return of higher gasoline prices as demand in China and India will reflect the rise of those natioin's middle class.

Why Diesel ?

Internal combustion engines are the largest consumers of energy and are the largest source of air pollution worldwide.  Diesel engines burn fuel at higher temperatures and consume 25-35% less fuel than conventional spark ignition engines.  In Europe where fuel costs 2-3 times as much, diesel use ranges from 33% in the UK, to 40% in Italy and Germany, to 53% in France.  In the US, only 19% of transport is diesel based.  We will see increased use of diesel technology in the US. 

Why JGS  Research ?

The opportunity exists to combine improved diesel engine technology with a renewable, non petroleum-based, alternative diesel fuel.  This will lead to more diesel cars in the US that are not only cleaner and more efficient, but an economically, environmentally and politically more attractive alternative for the American consumer.  Companies that are positioned to supply alternate fuels will see a demand for their product.  JGS Research has developed such a product – Bionit - that has the advantage of being renewable, economical, and environmentally friendly.