Terminal Fluids' Renewable Diesel Fuel
Our Synthetic Diesel
Instead of being petroleum based, our product is produced from biomass derived
fuels.  This biomass includes tallow, produced by rendering (boiling of dead animal
carcasses and unused portions of animals slaughtered for food to create an oil), and
yellow grease, a waste product of the food industry (used fryer oil).  These two raw
products can be turned into our synthetic diesel fuel in a traditional petroleum refining
facility by utilizing a proprietary refining process.

Our synthetic diesel fuel can be used both as a straight diesel fuel as well as a cetane
improver for petroleum based diesel fuel.  When used as a cetane improver, our
product does a better job of raising the cetane value of unadditized diesel fuel than
traditional cetane improvers.  This benefit allows our synthetic diesel to blended with
some raw blending stocks that traditionally would not respond to the nitrate based
cetane improvers used today (currently sold as a less profitable #
1 diesel fuel),
resulting in a more profitable #
2 grade diesel fuel.  Additionally, our product is
required in higher concentrations in order to raise the cetane value of the unadditized
blending stock to the minimum value for #
2 diesel fuel.  This means that our synthetic
diesel will add back the volume of diesel fuel lost when refineries switch to the
production of RDF in 2006, offsetting the need to reduce gasoline production.  

Mixing concentrations of our synthetic diesel fuel are much more exact than those of
nitrate based cetane improvers, which may require overtreatment to insure that the
minimum cetane value is achieved throughout the unadditized blending stock.  Our
synthetic diesel will also raise the cetane value of unadditized petroleum diesel fuel
linearly to a 100% concentration, where traditional nitrate cetane improvers will only
raise the cetane value about 8 points in the cetane range of 40 to 50, after which no
increase in cetane is achievable.

Our synthetic diesel has an initial cetane value of about 100, and it contains more
thermal energy than petroleum based diesel fuel.  A diesel vehicle that runs on 100%
concentrations of our synthetic diesel fuel will achieve an 8% improvement in fuel
economy, as well as a reduction in all emissions components.  Our new fuel meets all
requirements for RDF when run at 100% concentrations as a diesel fuel alternative.

Initially our synthetic diesel fuel may be most economically sold as a high cetane
blending stock for diesel fuel, because it lowers emissions components while raising
the cetane value of unadditized diesel fuel.  With the upcoming 2006 RDF
requirements, refineries need ways to reduce the cost of production of diesel fuel that
meets the 2006 RDF standards, and our product can help.  

As world reserves diminish and the cost of petroleum based diesel fuel becomes more
costly, our synthetic diesel will become more economically viable for sale as a
renewable diesel fuel (sold at 100% concentrations) being an alternative to petroleum
based diesel fuel.  Tax incentives and environmental credits will accelerate the
proliferation of the sale of this revolutionary new product as a renewable diesel fuel.
Our Synthetic Diesel's benefits as a cetane improver
Our synthetic diesel will linearly raise the cetane value of unadditized diesel fuel
without a top end limit.
  • The cetane value enhancing effects of traditional cetane improvers levels off at
    some point, and are only capable of raising the cetane value between eight to
    nine points between cetane values of 40 to 50.

Our synthetic diesel can linearly raise the cetane value of “non-responsive” diesel
blends.
  • The cetane value enhancing effects of traditional cetane improvers are
    incapable of effectively raising the cetane value of these “non-responsive”
    blends.

Our synthetic diesel enables the refining process for unadditized diesel to be
completed at a lower cetane value than possible with traditional cetane improvers,
lowering the manufacturing cost of unadditized diesel fuel.

Our synthetic diesel enables diesel blenders and traders to buy, treat, and profitably
resell a once lower cetane “non-responsive” diesel stock (such as that derived from
sands oil) as a higher-grade more profitable diesel fuel.

Our synthetic diesel meets the 15ppm max Sulphur content for #1 on-road diesel fuel
required in 2006 by legislation in the South Coast Air Quality Management District.

Our synthetic diesel is a volume extender and increases the end-product volume by
the added synthetic diesel volume.

Our synthetic diesel is synergistic with traditional cetane improvers.  When our
synthetic diesel is blended with traditional cetane improvers, the cetane value of the
final blend improves synergistically.
  • Traditional cetane improvers may require overtreatment to insure that the
    complete stock meets the minimum cetane requirement.

Because of improved combustion characteristics our synthetic diesel shows a
reduction in gaseous emission of total hydrocarbons, NOX (Oxides of Nitrogen),
particulates, and carbon monoxide.  Even greater emissions reductions were
achieved when our synthetic diesel was blended with lower grade diesel fuel (cetane
values under 40), demonstrating that our synthetic diesel may prove most valuable as
a blending stock for lower quality middle distillates.
Our Synthetic Diesel's benefits over Biodiesel
Our synthetic diesel meets the EPA requirements for RDF (reformulated diesel fuel).

Our synthetic diesel can be run at 100% concentrations in any diesel engine that
requires #1 on-road diesel fuel.
  • Biodiesel can only be used in vehicles newer than 1996 due to incompatibility
    with seals in the fuel system, and therefore can not be marketed nationally due
    to incompatibility issues.

Being a collection of long-chain paraffins, our synthetic diesel has a field tank storage
life equal or superior to currently commercialized diesel fuels.  It reacts to traditional or
plastic fuel storage materials the same way as commercialized diesel fuel.  
  • Biodiesel requires special additives to destroy algae and bacterial growth, and
    degrades rapidly when stored.
  • Biodiesel has cold weather solidification issues requiring fuel system heaters
    and tank stirrers.

Diesel engines were designed to burn fuels that include paraffins, which are normally
found in commercial diesel fuels and in our synthetic diesel.  
  • Biodiesel is unkind to modern fuel injection systems.

Our synthetic diesel blended diesels will not require fuel suppliers to increase the use
of algae and/or bacteria killers.
  • Biodiesel blends typically require more algae and/or bacteria-killing additives
    than regular diesel.

Because of improved combustion characteristics our synthetic diesel shows a
reduction in gaseous emission of total hydrocarbons, NOX (Oxides of Nitrogen),
particulates, and carbon monoxide.
  • Biodiesel raises NOX (Oxides of Nitrogen) emissions, which has hampered
    national use.

In a six-month test program a fuel economy improvement of 8% was achieved.

Our synthetic diesel contains more thermal energy than diesel fuel, resulting in
increased fuel economy, reduced emissions, and an increase in diesel engine power.
  • Biodiesel contains less thermal energy than petroleum diesel fuel resulting in
    an overall loss of power and fuel economy.

Our synthetic diesel demonstrates higher lubricity coefficients than petroleum diesel.  
This lubricity increase (which is similar to that of biodiesel) will extend the life of critical
tolerance fuel system parts such as the high-pressure fuel injection pump, which is a
very expensive part of a diesel engine.
Other environmental benefits of our product
Exhaust Emissions Reduction
  • Because of improved combustion characteristics our synthetic diesel shows a
    reduction in gaseous emission of total hydrocarbons, NOX (Oxides of Nitrogen),
    particulates, and carbon monoxide when burned in conventional diesel engines.

Biodegradability
  • Like biodiesel, our synthetic diesel is 97% biodegradable in water, compared to
    petroleum diesel fuel which is only 45% biodegradable in water, which helps to
    minimize environmental contamination from fuel spills.

Oceanic
  • Reducing the number of supertankers transporting crude oil worldwide will
    drastically reduce the likelihood of future occurrences of large oil spills that
    cause catastrophic damage to marine estuaries.

Marine
  • Fuel-related pollution in lakes and streams can be greatly reduced by diesel
    boat engines being fueled with our synthetic diesel because of its high
    biodegradability in water.

Reduced Fuel Consumption.
  • Diesel engines are much more efficient than gasoline engines.
  • At 20% power output, the average diesel engine consumes about 35% of the
    fuel consumed by a gas engine.
  • At 100% power, the average diesel engine consumes about 85% of the fuel
    consumed by a gas engine.
  • Our synthetic diesel will increase this fuel savings by providing up to 8%
    increase in fuel economy based on its concentration within the diesel fuel.

Reduced Resource Consumption.
  • The average diesel engine has a duty cycle of 250,000 miles, which is several
    times that of a gasoline engine, allowing vehicles to have a longer life
    expectancy.
  • Higher reliability accompanies a diesel engine, with fewer parts to tune-up or fail
    during their lifetime.

Reduced Fuel Filling-Related Fires.
  • Like diesel fuel, our synthetic diesel has a very high ignition point at
    atmospheric pressure.  This almost eliminates any chance of a static electricity
    fire caused by filling a diesel fuel tank.  
  • Fuel related fires are becoming a more common occurrence at self-service
    gasoline pumps nationwide.

Alleviation of Mad Cow Disease in the US.
  • Mad Cow Disease occurs when living cattle are fed the processed remains of
    dead cattle (which already had the disease) in the forms of feeds supplemented
    with animal by-products.  
  • By using the tallow for fuel production instead of a feed supplement Mad Cow
    Disease will be removed completely from the cattle industry.
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