Fuel savings and emissions reduction technology

Periodic Reporting for period 1 - HoxyTronic (Fuel savings and emissions reduction technology)

Reporting period: 2017-05-01 to 2017-10-31

Hoxy Tronic Ltd is an SME based in Bristol-UK that is built on vehicle performance modification expertise. In line with our core expertise, we have developed and intend to bring to market HOXYtronicTM a turn-key solution that will reduce road vehicle and marine vessel emission pollutants. As a commercial risk aversion measure before advancing to Phase 2 we undertook a Study to determine the commercial and financial feasibility of our innovation. In this study, we successfully determined the size of the potential market, the minimum selling price and the labour requirements to meet projected market penetration up to 2024. In addition, during the study we also made the following conclusions within our target market and industry:

i. Globally, there is increasing legislation driving the adoption of emission reduction technologies in the transport sector.
ii. There is a huge market for innovative emission reduction solutions and technologies in the transport sector as the industry achieves compliance with legislation hence it is an opportunity we can successfully capitalise on.

As a result, we are confident of achieving overall vision of growth for Hoxy Tronic Ltd. as a direct result of the project and we have to elected to continue with the HOXYtronicTM project to market readiness level via Phase 2 project

HOXYtronicTM is a device being developed by Hoxy Tronic Ltd. UK to contribute towards reducing the pollution levels of the EU transport system, HOXYtronicTM is a step change advance over a similar technology known as HHO technology, which also injects hydrogen and oxygen gas into the engine but at a fixed gas injection rate. This technology has had a certain amount of success, but it has certain drawbacks, which have prevented large scale uptake by the market. These drawbacks include excessive amperage drawn due to lack of the HHO gas input to the engine and a 20-30min warm up period for the electrolysis cell before optimum gas flow is achieved. This oftentimes creates a massive drag/load on the engine resulting in an adverse effect on fuel consumption. HOXYtronicTM has the unique advantage in being able to control the variable gas injection rate into the engine allowing for optimisation of the fuel saving and emissions reduction benefits to the customer HOXYtronicTM enables optimal fuel consumption and hence reductions in CO2, NOx as well as particulate matter emissions from both old and new vehicle engines. The gas additive is compatible with both petrol and diesel engines without any major modifications - in each type of engine, the additive increases power and fuel economies while reducing particulate and gaseous emissions.

The EU’s Air Quality Directive (2008) obliges member states to bring about a “20% reduction in their citizens' exposure to fine and medium-sized particles by 2020, compared to 2010 levels”. In the case member states that do not comply with threshold values soon, the Commission could be entitled to initiate an infringement procedure before the European Court of Justice. In addition, EU Member States are falling short of agreed air quality standards and air pollution guidelines set by the WHO, the EC has responded with the ‘The Clean Air Policy Package’ of 2013. This package updates previous legislation further limiting harmful emissions from industry, traffic, energy plants and agriculture, with a view to reducing their impact on human health and the environment. Member States failing to meet criteria set in The Clean Air Policy Package can be prosecuted and fined accordingly. However, the fine money will come from the ordinary tax payer and these are funds that could have been directed at critical sectors/services catering to society’s needs.

Since the transport sector remains the only industry in the EU in which emissions are continuing to rise, by minimising the transport related emissions, HOXYtronicTM significantly contributes the reduction in society exposure to emissions, fine and medium-sized particles.

In order to get our innovation to market readiness level, we will undertake a Phase 2 project. The project will focus on finalising the functionality designs and aesthetics as well as packaging the solution according to customer segmentation.

In our study covering commercial feasibility, we determined that the global market opportunity for road vehicles (trucks-200m, buses-30m, vans-160m and cars-760m) is valued at €929b and that of global marine vessels is valued at €22b. Under road vehicles, buses provide the largest market by size with € 384b followed by trucks (€256b) and then cars (€239b). In line with the financial feasibility, we determined that our total cost excluding overheads per unit is €66 and the minimum selling price per unit will be €157. We also conducted a time and motion study to map out the number of assembly line workers to meet 30,065 units by 2024.

In our exploitation strategy, we will target, the high value trucks segment, in particular long-haul trucking which will benefit the most from HOXYtronicTM technology. This will facilitate end-user to end-user brand advertisement and promotion- this is the best form of product promotion. From there, we will target Master Euro dealerships focussing on Tier 1 companies such as Eberspacher (1800 dealerships in Europe) and Webasto. Finally, as we sail on our build-up we will target OEMs. Our entrance into the OEM sector will set-up the necessary platform for us to implement our exit strategy (a buy-out by an OEM).

Our major value proposition and unique selling points that set us apart from our competitors and make our offering appealing, is that HOXYtronicTM does not only save fuel (thus reducing CO2 emissions per mile travelled) as the other solutions do but it ALSO reduces NOX, CO and Particulate matter emission. This distinction sets apart HOXYtronicTM as the solution of choice that ensures compliance with regulatory requirements and sets new operational standards.

As such, we will disseminate our results through:

i. Utilising our distribution partnership network
ii. Seeking alliances with associations in automotive OEM and MRO sectors
iii. Leveraging Statement of Verification from the EU Environmental Technologies Verification pilot programme (ETV)
iv. Conducting workshops and demonstration sessions for HOXYtronicTM for automotive industry Association
v. Exhibiting and attend the key events in the air pollution and emission reduction landscape including:

a. CEM Europe 2018 - Conference and Exhibition on Emissions Monitoring, 16-18 May 2018 Budapest Hungary.
b. 26th International Conference on Modelling, Monitoring and Management of Air Pollution, 19 – 21 June 2018 Naples Italy.
c. 2nd International Conference on Pollution Control and Sustainable Environment 5-6 October 2017 London, UK.
d. Integer Emissions Summit & AdBlue® Forum Europe 2018

HOXYtronicTM goes beyond the state of the art as it uses a novel closed-loop system made up of an amperage-mode power conversion unit and a patented electrolysis cell. The amperage-mode power conversion unit also controls the hydrogen & oxygen injection rate into the engine, thus enabling dynamic control according to various engine inputs such as rpm, mass air flow, and fuel injection rates. The electrolysis cell outputs the correct amount of Hoxy gas immediately without any warm up time synonymous with current technologies. The combination of the electrolysis cell together and the amperage-mode system allows dynamic optimisation of gas flow to match any engine requirement and or conditions. Our tests achieved power output gains from 1,550 rpm to 2,850 rpm of an average of 3,000 Watts more power (a 12% average horsepower gain) and an average torque gain of 10%. The increased engine torque per unit fuel translates into an average of 10-20% fuel saving for both highway and city driving. Fuel savings further translate into a reduction of CO2 emissions per mile travelled. The high Hoxy gas combustion efficiency promotes fuller combustion cycles for the fuel in the cylinder resulting in reduced the NOx and PM emission by 50-80%.

As a result, HOXYtronicTM will have the following potential impacts:

Emissions reduction
The transportation sector in Europe contributes more than 50% of carbon monoxide and nitrogen oxides in addition to almost 25% of all hydro-carbons emitted into the atmosphere. The effect of these emissions has been linked to 60,000 premature deaths per annum in the UK and cities like Paris suffering 'worst air pollution for at least a decade'. The EU is looking for innovative solutions that will facilitate the reduction of transport sector related emissions (particularly CO2, NOx and particulate matter emissions).

Improved Fuel Economies
With sky-rocketing fuel prices, individuals, companies and government bodies are seeking ways to increase fuel economies while continuing to meet energy-efficiency targets. The EU needs HOXYtronicTM because this is a solution that directly targets fuel efficiency resulting in fuel savings and toxic emissions reduction. HOXYtronicTM directly contributes to achieving the European transport and mobility goals defined in the ‘2011 Transport White Paper’. In addition, HOXYtronicTM allows local governments to meet EU-wide strict air pollution and emissions standards, while car owners achieve fuel savings through reduced fuel consumption.

Periodic Reporting for period 1 - HoxyTronic (Fuel savings and emissions reduction technology)

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