IFT CEO Jon Burst: Add to gas tank, subtract from environment (and budget)

Can a fuel additive be green?

Jonathan Burst thinks so. The chief executive of International Fuel Technology claims his product -- a renewable materials-based fuel additive called DiesoLift10 -- offers railroad companies, fleet managers and utilities a 3 to 7 percent boost in fuel economy that translates to fewer greenhouse gas emissions and a smaller fuel bill.

Last month, the company landed a deal with British railroad company East Midland Trains -- a division of British light rail giant the Stagecoach Group -- to provide it with the additive, which it claims saved it some 92,000 gallons of diesel fuel over the course of a year.

I spoke with Burst from his office in sweltering St. Louis, Mo. about how adding something extra to the gas tank can reduce what comes out of the tailpipe (and the corporate fuel budget).

SmartPlanet: By its very definition, a fuel additive can't be very green. How can yours be?

JB: It is interesting when you talk about additives because, let's face it, most additives are made of fuel. You can't add a lot -- you're putting fuel in fuel.

There are a lot of claims [about additives] out there that are inaccurate. That's why it's taken so long for IFT to gain credibility in the industry.

[For] our additive technology, we've created a non-petroleum molecule going into hydrocarbon fuels. We have a breakthrough technology to help fleets reduce emissions and save money. It's a pretty simple process to burning less fuel and emitting less emissions. For us, there's a direct correspondence between burning less fuel and emitting less carbon.

We really do believe that economics is going to be the driver. We don't believe fleet companies will buy something that won't save them money. They won't buy something that makes them green, but they will buy something that makes them money. We're in a hot space.

It takes a long time as an R&D [research and development] company to properly validate your technology. There aren't a lot of companies willing to provide the data we produce. As a company, we continue to be surprised how long it takes to get commercial with a new technology.

SmartPlanet: So how does putting more into a gas tank translate to less?

JB: We improve lubricity, which contributes to improved efficiency within the engine, which contributes to needing less power to do work. Detergency is also important. The biggest contributor is improved combustion.

With surfactant chemistry...let's say you're going to start a fire. You have two options. One is three big logs you need to light. The other is those logs, splintered, in tiny pieces. With the splintered pieces, you get a bigger combustible event in less time. That's really what it's all about. You're creating more surface area. You have more complete combustion. You get less emissions.

SmartPlanet: So why don't gas companies or engine manufacturers do a better job? Why does it take a third party like you to achieve more efficiency?

JB: Well look, they do a pretty good job. But it's just not that efficient. There are a lot of ways to improve efficiency. We have IP [intellectual property]. The oil companies predominantly don't put additives in their fuel. They're in the E and P -- exploration and production -- and wholesale business.

At the terminal, there are lots of additives put in diesel fuel.

In some cases, we sell to some fleets, and they're actually putting our additive in their central fuel tanks. We can go upstream as far as the terminal.

We are bulk distributors. Our business model doesn't call for putting bottles on shelves. That's why we're focused on the big industrial users of fuel.

Our business model basically calls to be a technology company. We outsource our manufacturing capabilities at cost plus, and we work through distributors. We're in the process of moving away from being an R&D company to being a commercial entity. We will continue to develop the technology and let it evolve as we can improve it, enhance it as the industry changes.

SmartPlanet: You mentioned fleets. Which industries do you sell your product to?

JB: For us, rail is at the forefront of everything. It's one of the largest industrial users of diesel fuel. They're big for us. That's not to say road transportation won't be a bigger market for us, it will. But the industry really doesn't change much.

• Tier 1 railroads. They're our optimal client.
• Road transportation, but only centrally-fueled fleets. We have no distribution for long-haul. Clients like regional supermarkets. Ultimately, we'd like to be able to distribute to long-haul transportation, but you need to have distribution at truck stops.
• Stationary power generation.
• The marine industry. A huge opportunity, as long as they're burning No. 2 diesel, and not bunker fuel, which is No. 6 diesel.
• We don't work normally with the aviation industry, because that's turbine engines, not diesel.