With most automotive manufactures making some form of electric/hybrid vehicle these days…
And Tesla currently leading the movement…
We sometimes forget that there’s still a long way to go to head off the negative effects (harmful emissions) of gas-powered vehicles.
In fact, it’s estimated that by 2050, 80% of the cars on the streets will still be gas-powered.
Yesterday we added a startup to our deal flow that has developed a nanotechnology fuel additive that improves fuel efficiency up to 8% and cuts vehicle emissions by 50%.
This technology isn’t just effective on gasoline… It also works with diesel and bio-fuels.
The patents are in place and they already have multi-billion-dollar companies like BP, Marubeni, PKN ORLEN, and Suncor Energy in their client pipeline.
Like I said… I added this startup to our Angel Investing Insider deal flow yesterday.
I’m not telling you something you don’t already know. But I believe it’s going to take the innovation of CleanTech startups (like this one ^^^) to make the change we need.
Time For A Change
Air pollution is terrible for human health, it harms animal and plant life, and creates many other environmental problems.
All politics aside — it’s just a simple fact that everyone wants to breathe clean air.
While the most extreme examples of air pollution may seem far from home, the reality is that 95% of all people on the planet breathe air that is unsafe by World Health Organization standards.
And vehicle emissions are a major part of all this. One-third of all air pollution in the United States comes from vehicles.
While steps have been taken to improve air quality through regulation, I think the best solution (as usual) is innovation.
Let’s explore emissions and air pollution to better understand the problem. Then, I think you will be able to see the immense potential in solving it. To finish off, I’ll show you a startup that is tackling this problem with a mind-blowing solution.
We just added a CleanTech startup to our deal flow that’s developed a patented fuel additive, proven to improve efficiency while reducing harmful emissions by up to 50%. To join, learn more, and start investing –– click here.
Emissions and Air Pollution
As I said, one-third of the air pollution in the U.S. is caused by vehicles. Do you know that thick smog over Los Angeles? It sure isn’t natural. One of the main causes of this is a high density of drivers.
This isn’t just a problem for a small slice of the population — four out of ten Americans are breathing unsafe air, according to the American Lung Association.
Cars and trucks emit four major pollutants:
- Carbon monoxide
- Nitrogen oxide
- Particulate matter
These are toxic and dangerous pollutants that are undoubtedly horrible for your health and damaging to the environment.
And this street-level pollution is particularly problematic for human health. The fumes spew out of tailpipes often right next to us where we inhale them into our lungs in high concentrations. Compare this to industrial pollution that usually happens far away from residential areas.
Health Effects of Air Pollution
Air pollution is responsible for 5 million deaths per year. That’s 9% of all deaths globally.
It is one of the highest risk factors for premature death, up there with high blood pressure and smoking.
Death rates from air pollution are the highest in the developing world. Clean air is often a luxury exclusive to the richest countries who have the extra money to clamp down on regulations, fund environmental agencies, and run costly programs to renew polluted areas.
An unfortunate reality is that as poorer nations grow into richer ones, they always significantly raise levels of pollution. The industrial activity required to build national wealth is highly polluting, especially when they are unregulated.
Regardless of where you are, this is a big problem. Many cities in the U.S. have very high levels of air pollution.
The effects of breathing this dirty air are:
- Aggravated cardiovascular and respiratory illnesses
- Development of diseases such as asthma, bronchitis, emphysema, and cancer
- Damage to cells in the respiratory system
- Accelerated aging of the lungs
- Decreased lung function
- A shortened life span
The most at-risk populations are always young children, older adults, people who are active outdoors, and people with existing problems like heart or lung diseases.
Environmental Effects of Air Pollution
Along with harming human health, air pollution is damaging to the environment. Here are a few of the many harmful effects of air pollution.
- Acid rain – When fossil fuels are burned, nitrogen oxides and sulfur oxides are released into the atmosphere. These fall back down to Earth as nitric and sulfuric acid. Acid rain damages trees and makes water and soil too acidic to support certain species. Also, it speeds the decay of buildings, statues, and other infrastructure.
- Haze – Haze and smog lurk above urban areas. Apart from being ugly and ruining the view, haze is an indication of extremely high levels of harmful airborne particles.
- Ozone depletion – Ozone in the stratosphere protects us from the sun’s ultraviolet (UV) rays. Many compounds in our emissions damage this layer of ozone allowing for increased levels of UV rays. This causes increased rates of skin cancer, cataracts, and impaired immune systems, and damages sensitive crops and reduces crop yields.
- Impact on wildlife – Pollutants end up in the air, soil, and water, causing health problems for wildlife. Air pollution is linked to an increase in birth defects, reproductive failure, and disease in animals.
Big Opportunity in Fixing Our Air
I think we can agree that fixing our air is important. While the problem may seem monumental, the bright side is that thousands of entrepreneurs are already hard at work creating solutions.
Clean Technology (CleanTech) refers to ongoing efforts to improve environmental outcomes. This includes reducing emissions and our negative impact on land, water, and air.
While the CleanTech market is very young, it already has a healthy startup space that attracts huge amounts of funding from investors. And as awareness grows around environmental concerns and the depletion of natural resources, this market will continue to expand.
Green and eco-friendly startups are booming. This vertical is ripe with disruptive solutions that tackle these environmental problems. We have already seen many IPOs and acquisitions in solar energy, electric vehicles, and even eco-friendly consumer goods.
The next big things to watch out for are startups solving the emission problem. Things like biofuels, electric vehicles, fuel additives, and fuel-efficient vehicles have a lot of potential.
One Startup Making Fuel Cleaner and More Efficient
I’d like to show you a new solution to the vehicle emissions problem, one that is as surprising as it is unprecedented.
Here’s the low-down:
- The fuel additive reduces fuel consumption by 8%
- It increases lubrication and is less corrosive than other fuels
- It decreases emissions by up to 50%
- 800x more effective than competing fuel additives
- 20x cheaper than the competition
Here’s how it works. A microdose of an environmentally-friendly additive is added to fuel — one to five grams treats 260 gallons of fuel. This is a carbon-based nanoparticle that is dissolved into gasoline or another solvent and then added to regular fuel.
It only costs a few extra cents per gallon to include this additive, resulting in around a 1000% ROI for drivers from the money they save on gas and damage to their engines.
The product can be used by refineries, gas stations, and the general public, but perhaps the biggest opportunity is in partnerships with refineries.
At the moment, a refinery’s fuel is virtually indistinguishable from its competition’s fuel. With this product, an entirely new class of fuel is created — one that can be up-sold and marketed as superior to the competitor’s fuel.
The startup estimates that working with one single refinery would result in $27 million in annual revenue. There are 220 refineries in the U.S. and Europe — a huge potential market. Meanwhile, A gas station operator with 500 stations would result in $12 million in revenue.
They believe that with only about 15 clients they can scale to $400 million in revenue in a short time. They already have some big clients like BP in their sales pipeline.
Rather than fighting against Big Oil, they are working with it. Diesel and gasoline will power 80% of all vehicles by 2050. Hopefully, these vehicles will be using this additive to save money on fuel, burn less of it, and cut their emissions in half.
This startup, along with our detailed overview of the opportunity and investing instructions, was just released to our Angel Investing Insider members. To join, learn more, and start investing –– click here.