Mar 10 2009
Energenics, a Singapore-based supplier of alternative energy solutions and technologies, has committed $500,000 to lead Cerion Energy's $4,000,000 Series B investment round. Closing of the B Round is scheduled for May 31, 2009.
In accordance with a previously executed Memorandum of Understanding, Energenics and Cerion have pooled their R&D expertise to jointly develop a family of "Third- Generation" fuel-borne combustion catalysts which increase fuel efficiency while reducing harmful greenhouse gas emissions and health-threatening chemicals such as NOx and Diesel Particulate Matter (DPM).
Advanced cerium oxide nanoparticles have been developed by Cerion for addition to diesel fuel in the less than 5 parts-per-million range. These catalytic cerium dioxide particles are up to forty times as reactive as existing cerium dioxide nanocatalysts used as fuel additives.
The thermodynamic and kinetic properties of Cerion's cerium oxide particles can be independently controlled and engineered down to the limits of particle size reactivity. Cerion has demonstrated unprecedented levels of particle size control and surface activity for deployment as fuel-borne catalysts.
Formulations are available that combine the properties of Cerion's new cerium oxide particles with the multiple particle effects of Energenics' present cerium oxide particles which are supplied to Energenics under an exclusive supply agreement with Antaria Limited of Perth Australia. These new Third-Generation fuel-borne catalysts are already available in commercial quantities and current manufacturing capability in Cerion's Rochester, New York plant is sufficient to produce enough additive to treat over 5 billion gallons of diesel fuel annually. Further, Cerion's marketing and distribution subsidiary, Cerion Gulf, is in the final stages of completing initial field tests with several major potential customers in the Southeast United States.
Test data conducted by both Energenics and Cerion demonstrate increases in fuel efficiency and reduced emissions. Extensive laboratory engine test data (thousands of hours) and on-road test data (millions of miles) by both Energenics and Cerion suggests that these diesel additives are increasing fuel efficiency by 8-15% while reducing greenhouse gases by up to 15%, NOx by 8%, and DPM (soot) by 30-40%. These new additives are significantly better than existing commercially available First-Generation cerium oxide fuel additives.
In addition to collaborating on fuel combustion catalysts for diesel, gasoline, ethanol, biodiesel, coal, etc.; Energenics and Cerion are exploring business opportunities in the area of cellulosic ethanol production and other areas where their combined technology experience and expertise can make a major impact on the development of green-alternative energy solutions. Also, Energenics and Cerion are considering establishing a world-class trading service for Carbon Emission Credits that result from the use of its products in the reduction of transport related greenhouse gases, an area that Energenics have been actively involved in for 2 years.
Ronen Hazarika, CEO of Energenics, commented, "I'm ecstatic that the joint efforts of Cerion & Energenics have enabled a technology leapfrog in fuel-borne catalysis. The technology I initially developed and licensed in 2001 to Oxonica Plc had not fundamentally advanced in their hands, whilst an aggressive and intensive development program pursued with Cerion in 2008 has yielded Third-Generation products available for the start of 2009. I'm excited to demonstrate the benefits of the technology not only to current users of the First-Generation additive but also to new potential customers including our existing blue-chip US fleet transport customers. Additionally, this advanced technology means that for the first time ever, cerium oxide fuel borne catalyst particles can be tailored to optimize characteristics suitable to particular customer applications and needs."
Mick Stadler, Chairman and CEO of Cerion Energy, commented, "We are delighted to have Energenics as a strategic partner and we welcome the opportunity to collaborate with them on the creation of a new generation of green, alternative energy products. Further, their growing customer base in the United Kingdom and Asia-Pacific provides us with a unique opportunity to begin selling our diesel fuel-borne combustion catalysts in early 2009."
Cerion had its genesis in the Rochester Institute of Technology's (RIT) entrepreneurial business incubator, Venture Creations and was the first company spun out of Venture Creations in July of 2007. Cerion continues to partner with RIT in the material science area and has contractual and consulting relationships with several key faculty members in the College of Science (Chemistry, Physics and Carlson Imaging Science), the College of Engineering, and the Center for Integrated Manufacturing Studies.