The Weekly Deal CW15/24 - ReFuel Solutions
The Weekly Deal CW15/24 - ReFuel Solutions
One startup, once a week. ReFuel Solutions builds the best aftermarket solution to run any diesel system on 100% Biodiesel.
#cleanenergy #sustainability #bigdata
🥜 In a nutshell
Company: ReFuel Solutions
Industry: Energy, Automotive
Sub-Industry: Clean Energy, BioFuels
Year Founded: 2021
HQ: Modena, Italy
Stage: Seed
Founders: Marco Di Mola, Rexhina Saraci, Adriano Cordisco, Federico De Pietri
Funding Amount: 1.8M
Main Investors: Industrial Entrepreneurs Public Equity-free Fundings, Feel Venture
In a sentence: ReFuel Solutions is an innovative startup of the MotorValley that has created BiodieselKit, the most innovative retrofit system that allows you to use 100% biodiesel on today diesel-powered heavy vehicles, construction machinery, agricultural tractors and power generators, allowing an instantaneous reduction of CO2 and particulate matter.
🔭 The Context
In the global landscape, several sectors significantly contribute to the overall level of emissions. Within the operational processes of various actors in the transportation, construction, and agricultural sectors, a significant contribution comes from the widespread use of fossil fuels and diesel engines.
Indeed, with over a billion vehicles worldwide, the transportation sector contributes a staggering 16% of global emissions.
With the global impetus towards decarbonization gaining momentum, companies in these sectors face the challenge of reducing their carbon footprint by exploring alternatives to fossil fuels and incurring substantial costs.
With a significant portion of vehicles still equipped with internal combustion engines (ICE), transitioning to low-carbon fuels presents a viable path towards a more sustainable future. The use of biofuels emerges as a promising candidate to drive decarbonization efforts by offering a low-carbon alternative for existing ICE vehicles.
Main Problems
Transforming the current transportation landscape into a sustainable paradigm presents formidable challenges, particularly in retrofitting existing vehicles to align with eco-friendly fuel alternatives.
While electrification offers a promising pathway, retrofitting vehicles with electric powertrains entails significant costs and technical complexities. However, an alternative solution emerges in retrofitting biofuel systems, offering a potentially more feasible and cost-effective approach to sustainable transportation.
ReFuel Solutions: The BiodieselKit
Initially born out of the need to reduce the environmental impact of the transportation sector, ReFuel Solutions now aims to make a significant reduction in the carbon footprint across various sectors.
The idea behind the BiodieselKit emerged from the founders’ deep understanding of the potential that pure biofuels can bring to global entrepreneurial efforts in emissions reduction, as well as their immersion in the Motor Valley industry.
Recognizing that vehicles with many years of remaining life should not be scrapped due to their environmental impact and replaced at a significant cost, ReFuel has created the BiodieselKit. This technology allows companies to adapt their assets to meet environmental standards by enabling the use of pure biofuels, thereby maximizing their potential.
This innovative patented system achieves a remarkable 90% reduction in CO2 emissions and a 60% decrease in particulate matter, ensuring extended vehicle lifespans, avoiding premature vehicle disposal, and generating substantial cost savings.
One of the key advantages of the BiodieselKit is its versatility. The BiodieselKit is modular and scalable, allowing the technology to be adapted to different engine sizes, covering virtually all applications where diesel is used, from stationary applications to heavy-duty ones.
3 Variants
Currently, the technology is available on the market in three variants:
BiodieselKit for Trucks
Includes trucks, semi-trailers, and buses.
BiodieselKit for Off-road
Includes tracked vehicles, wheel loaders, tractors, motor graders, dumpers, excavators, backhoe loaders, bulldozers, and asphalt pavers.
BiodieselKit for Gensets
Includes diesel generators of all sizes and for various applications.
The installation of the BiodieselKit is quick and non-invasive, typically requiring less than a working day, even in tight engine compartments.
The affordability of the technology is another important selling point, with costs varying depending on factors such as vehicle age and application sector.
Despite market fluctuations, the BiodieselKit offers a compelling value proposition, enabling both the ecological transformation of vehicles and fuel cost savings.
🔍 Some Info
📈 Market Size → SOM 6.7 B€
TAM – Total Available Market 104.9 B€
SAM – Serviceable Available Market 32.2 B€
SOM – Serviceable Obtainable Market 6.7 B€
👨🏻🔬 Technology & IP → 1 international patent
🛒 Business Model → B2B
ReFuel Solutions adopts a B2B business model, conducting sales of BiodieselKits, spare parts, as well as selling accessories and ancillary products (tanks, refueling stations, FMS modules), related services for emissions reduction certification, CO2 credits, white certificates, fuel supply management services through intermediation, and consulting services for customized vehicle modification plans.
🤝 Team → 4 Founders + 15 employees + 10 external consultants
Founders:
Federico De Pietri: President, CTO, IP and R&D Manager
Adriano Cordisco: CEO, Legal Officer
Rexhina Saraci: VP, Chief Business Development Manager
Marco Di Mola: COO, Sales Manager, Production Manager
💰 Financials → 1.8 M€ raised
ReFuel Solutions has secured €1.8 million in seed funding from investors such as Industrial Entrepreneurs Public Equity-free Fundings and the VC Feel Venture.
🥊 Competitors → Optimus Technologies
Optimus Technologies: Optimus manufactures the Vector System, an advanced fuel system technology that enables diesel engines to operate on 100% biodiesel.
❓Q&A with the Team
We had the chance to ask some questions to Rexhina Saraci, Co-Founder and Chief Business Development Officer at ReFuel Solutions.
1. Why are you the best team to build this?
I believe we are the right team for this project because, while our technical skills are on par with those of others in the field—some refined during our university studies and others developed through venturing into the world of entrepreneurship, where mastery over every aspect of business is essential—we simply chose to undertake this journey together. This choice has not only solidified our team but also kept us united in making critical decisions while still preserving our individual diversity in skills and attitudes. Moreover, our commitment to this path ensures we remain outcome-oriented, even under the most stressful conditions involving heavy workloads or complex challenges
2. What progress has been made?
We have made significant advancements in the biodiesel sector, beginning with deep research into its complexities and leading to the development of our patented BiodieselKit. In 2022, we secured our first funding, which enabled us to produce prototypes for diesel generators. The next year, additional funding allowed us to expand our facilities and staff, enhancing our operational capabilities. We also worked closely with institutional stakeholders to align our technology with Italian legislation. By early 2024, we successfully launched our BiodieselKit for the off-road industrial sector, now CE marked to meet European standards.
3. What is your fundraising situation?
Currently, we have sufficient funds to manage our market entry. Our focus is on achieving self-sufficiency, though we've planned for the next 3-5 years. Experience has taught us that long-term forecasts can differ significantly from immediate needs. Therefore, we evaluate our financial situation every six months with our investors, accountants, and CFO to determine future funding needs and consider appropriate financial instruments, whether from private investors or bank loans.
3. What are your next steps?
Our next steps are focused on making a strong impact in the market and expanding internationally. First, we plan to grow our commercial and production facilities to enter the market more forcefully. This means increasing our production capacity and improving our operations to meet higher demand. Second, we aim to expand into new international markets without waiting for additional approvals. By moving into these markets, we hope to increase our reach and impact, using our existing product certifications to speed up our global expansion.
Many thanks to Rexhina for the interesting conversation!
👨🏻💻 My Critical View
In evaluating ReFuel Solutions and its BiodieselKit concept, it's essential to consider both its potential benefits and drawbacks:
Sustainability Claims vs. Environmental Impact: While the BiodieselKit aims to reduce emissions, the sustainability of biodiesel remains debated due to concerns about deforestation and food insecurity from crop-based production.
“To put these figures into context, it would take a field the size of a standard football pitch covered in crops to fuel just 2.4 cars over the course of one year. If that land were instead covered with solar panels, it would power 260 battery electric cars in one year.”
To address this topic, ReFuel is focusing on BioDiesel FAME, "A truly eco-friendly fuel produced directly from vegetable oils and fats, algae, and especially used oils."
Market Size vs. Competition: ReFuel Solutions operates in a sizable market, but of course faces competition from emerging players, also in alternative solutions to BioFuel.
Technological Innovation vs. Regulatory Challenges: The BiodieselKit represents innovation, but navigating regulatory hurdles and securing approvals may pose challenges.
Financial Viability vs. Market Adoption: Long-term sustainability depends on market adoption and revenue generation, requiring convincing fleet operators of economic benefits.
Team Expertise and Execution: While ReFuel Solutions boasts a multidisciplinary team, effective leadership and adaptation to market dynamics are crucial for success.
In summary, balancing technological innovation with environmental responsibility, market demand, regulatory compliance, financial viability, and effective execution will be key to ReFuel Solutions' success.
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