English
The Market
Potential Customers & Revenue
Fuelsion Ltd targets all diesel fuel and fuel oil applications, with a primary focus on the road diesel freight transport segment. The key target market is heavy goods vehicle (HGV) truck companies, where fuel efficiency, cost reduction, and emission control are critical for operational success.
Target Market
C.I. Engine Applications
Diesel and fuel oil applications are the target markets for NEF (N4NO® Tech Environmental Fuels) onboard technology, with Fuelsion Ltd initially focusing on the road diesel freight transport sector, particularly HGVs (heavy goods vehicles). WiFE (Water in Fuel Emulsion), a cost-effective alternative technology, is a key direct target as it reduces both PM (particulate matter) and NOx (nitrogen oxide) emissions simultaneously without requiring engine modifications. Indirect target markets include EVC (electric vehicle charging) solutions and post-combustion emissions reduction technologies such as SCR (selective catalytic reduction), DPF (diesel particulate filters), and DOC (diesel oxidation catalysts).
Market Challenges
Weaknesses and Threats
Direct and indirect target market are analysed to determine the potential challenge and threats imposed on NEF onboard technology. Challenges imposed by direct competitors are water in fuel technology (macroemulsions) produced for stock purposes from diesel or fuel oil. Indirect competitors are those offering alternative fuels or emission reduction technologies. Other challenges are due to diesel cars being banned from some European countries by 2035, and sanctions on diesel fuels and emissions targets increasing or being implemented.
Market Solutions
Strengths and Opportunities
N4NO® Tech environmental fuels (NEF) technology is designed to produce onboard at operational temperatures, using low energy method, water in diesel (biodiesel or biofuels) nanoemulsions (WiDE), for the heavy good vehicles market segment, capable of simultaneously increasing combustion and thermal efficiencies, as well as, decreasing fuel, implementation, and operational costs, reliance on hydrocarbon fuels, exhaust gas emissions, and the impact on health and wellbeing.
Value Proposition
Unique Selling Point
Fuelsion offers an advanced NEF (N4NO® Environmental Fuels) low-energy, onboard technology that enhances vehicle autonomy, reduces fuel costs, minimizes reliance on hydrocarbon fuels, lowers operational expenses, and decreases exhaust emissions. This solution is ideal for businesses seeking cost-effective and sustainable alternatives, helping them meet operational demands while aligning with sustainability goals and regulatory compliance.
Fuelsion’s unique selling point (USP) lies in its innovative NEF technology, which delivers these benefits while minimizing environmental impact. This eco-friendly approach appeals to businesses focused on efficiency and sustainability, offering a practical solution that cuts emissions and reduces operational costs.
Direct Competitors
Water in Fuel Technology
This is an emerging market with no dominant players. Several companies offer technological solutions to produce large volumes of macroemulsion fuels, for stock purposes, including Quadrise International Fuel Plc (Quadrise) and SulNOx Group Plc (SulNOx) with residual fuel macroemulsions, and Clean Fuel Limited (CFL) with diesel macroemulsions. Quadrise develop biofuel macroemulsions marketed as MSAR that incorporate glycerine. SulNOx offers surfactants and additive mixtures as engine conditioners to produce formulations for fuel improvement. Both are on the stock exchange with the objective to raise capital support their operations and growth initiatives.
Competiveness
Competive Advantages
N4NO® Tech targets a specific niche within the broader market of alternative fuels. Our strategic focus on water in diesel nanoemulsions for the Heavy Goods Vehicle (HGV) market segment, along with support from academia at the PhD level, positioning oursleves as a leader in fuel technology innovation. By leveraging specialized expertise and investing in cutting-edge research, we aim to develop solutions that offer tangible benefits in terms of efficiency, emissions reduction, and sustainability.
Fuelsion Ltd | Quadrise Fuels PLC | SulNOx Group PLC |
| Limited Co. | PLC | PLC |
| Techncial Focus | Business Focus | Business Focus |
Start-up funds | Stock Market | Stock Market |
HGV Transport | Marine & Industrial | Marine & Industrial |
| High Target Vol. | Med. Target Vol. | Med. Target Vol. |
| Low Vol./Unit | High Vol./Unit | High Vol./Unit |
| High Profit | Low Profit | Low Profit |
Nanoemulsions | Macroemulsions | Macro (Nano) |
Diesel (Biofuels) | Residual | Residual (Diesel) |
Onboard | Stock Purposes | Stock Purposes |
Low Energy | High Energy | Medium Energy |
Op. Temperatures | Amb. Temp. | Amb. Temp. |
Constant Fn:W | Constant Fn | Constant Fn |
| Reduces PM, CO, CO2 and NOx | Reduces PM and NOx | Reduces PM and NOx |
TAM
Total Adressable Market
N4NO® Tech Total Addressable Market (TAM) is the diesel fuel market, including road diesel transport, marine gas oil (MGO), diesel marine inland, diesel fishing boats, diesel mining vehicles/equipment, and diesel industrial applications, corresponding to 21.7M ton/year.
SAM
Serviceable Adressable Market
N4NO® Tech Serviceable Addressable Market (SAM) is HGV companies with ~20 trucks/fleet, with a total of 504,600 HGV trucks, representing 54.3% of the total trucks in UK (Texaco Motor Transport, 2016). The SAM corresponds to 34.5% of TAM.
SOM (Year 5)
Serviceable Obtainable Market
N4NO® Tech estimates a Serviceable Obtainable Market (SOM) size of 26.07B litres/year of diesel consumed (Statista,2023) and 8.85B litres/year for HGV trucks (GOV.UK,2023) at £1.46/litre (ONS,2023). The SOM corresponds to 0.75% of SAM at year 5 (year 8 from Industrial Research stage).
Expenses Forecast
Industrial Research (15 months)
The Industrial Research stage is split into two parts., with total estimated costs c.a. £130k, for a period of 15 months, planned from 1st of October 2024 to 31th of December 2025. The first part of this stage comprises labortatory screening and engine testing, planned from 1st October 2024 to 31th of Macrh 2025, with total estimated costs c.a. £10k (self funded). The second part of this stage comprises, labortatory, engine, light- and heavy-duty vehicle testing and trials, planned from 1st of April to 31st of December 2025, with total estimated costs c.a. £120k (self-funded). Some of these costs may be reduced depending on approval of Caput project.
Description | Units | Value |
TAM Diesel Market Volume | M ton/year | 21.7 |
SAM of TAM | % | 34.5 |
SOM of SAM in year 5 (year 7) | % | 0.75 |
NEF Sales in year 1 (year 3) | % of SOM | 9.9 |
NEF System in year 1 | each | 250 |
NEF Sales in year 2 | % of SOM | 37.2 |
NEF System in year 2 | each | 937 |
NEF Sales in year 3 | % of SOM | 75 |
NEF System in year 3 | each | 1,897 |
NEF System Royalties | GBP/each | 100 |
Sales Economics
Financial Assumptions
N4NO® Tech plans to charge £0.10/litre of NEF used integrated into the NEB price, and £100/unit for the IP rights of NEF onboard systems planned to be sold at £2K. Market penetration in UK is estimated at 0.75% of SAM by year 5 post industrial research stage, totalling 3,785 HGV trucks and 189 HGV companies. The global GDP is USD$1.9T and the UK road transport GDP is £17.5M, estimating a multiplier of 84x (£1.47T/£17.5M). CAGR is 14.5% 2027-2031 (Fuelsion,2023).
Acc. Gross Profit
10-Year Period
The estimated gross profit is based on the financial assumptions, calculated from the difference between income and expenses. The income includes the sales of equity totalling £630k between first 3 years, prior to full commercialization stage. The expenses are calculated based on the Industrial Research stage (15 months), estimated for the Experimental Development (12 months) and Pilot Deployment (6 months) stages, plus the estimated costs of running the business after commercialization. The calculations take into account the R & D tax return of 26.97% (186% x 14.5%) up to year 3, but ideally should consider R & D tax credit of 186%, to deduct from corporation tax.