The Value of Bio-Eco-Hybrid Fuel


Petroleum is one of the most destabilizing issues and security threats facing the United States and countries worldwide. Price and supply volatility impose potentially dangerous risks on the world economy and sovereign relations.

And, whether maritime shipping, railroad locomotives, diesel powerplants, or big off-road mining and other equipment, regulations are increasing to reduce emissions to slow climate change and increase energy efficiency. Emissions rules are increasing across all sectors, industries and countries.

E.g., while maritime shipping is a highly effective and efficient means of transporting large volumes of cargo, it is also a significant contributor to air pollution in ports and across oceans. Maritime shipping has been described as the next “smokestack” industry. New regulations place firm limits on diesel exhaust emissions. Current low-sulfur fuels with low viscosity and lubricity increase operating costs and adversely affect engine operation. They do not address nitrogen or particulate emissions.

CHALLENGE: Reducing Waste & Decoupling from the Industry

In 2015, U.S. biodiesel companies sold nearly 2.1 billion gallons or 50 million barrels of biodiesel with a value of $6.7B.   This also means that the biodiesel companies had in excess of 160 million gallons of glycerol byproduct from the manufacturing process. Some of this gets refined for food/pharma/cosmetic uses.  Most of the glycerol is “waste;” a significant expense.

Further, the biodiesel industry has identified the value of decoupling from the current petroleum “pipeline.” BD companies are actively looking for new market opportunities, for ways to further reduce emissions, and to continue their mission of providing petroleum alternatives and offsets.


 SeaChange Group identified an opportunity and solutions that addresses this convergence of needs, problems and challenges!

Patented Bio-Eco-Hybrid™ fuel covers a range of glycerol, biodiesel and surfactant blend ratios. Commercial blends with biodiesel as the primary base fuel are expected to have 10% to 25% glycerol, 70% to 85% biodiesel, and a surfactants mix that creates emulsion stability. Water and ULSD may also be incorporated into some Bio-EHF blends. SCG’s blends have demonstrated stability and increased lubricity without negative effects on engine operability.

Maine Maritime Academy (MMA) logoBio-EHF reduces engine emissions of sulfur oxides (SOx), oxides of nitrogen (NOx) and particulate matter (PM), helping operators to meet regulations.  Bio-EHFs are “drop-in” fuels for widely used medium-speed and high-speed diesel engines. Development, testing and field trials are being done with Maine Maritime Academy’s Marine Engine Testing and Emissions Laboratory (METEL).

The Biodiesel Industry represents an ideal commercialization pathway. The link to and volatility of petroleum prices is pressuring this industry. Bio-EHF represents the opportunity for biodiesel manufacturers to utilize their primary waste product, glycerol (it is 10% of the off-take) in a direct to end-user, value added product that further reduces emissions.

Bio-EHF enables biodiesel producers to use the glycerol byproduct in a new, value-added fuel product that can be sold either through the existing supply chain or directly to their end-customers.  Further, Bio-EHF can add new or under-appreciated market opportunities for these companies. Together SCG and biodiesel producers can meaningfully reduce emissions, the impacts of diesel combustion on the environment, health concerns, and petroleum use thereby increasing sustainability and enhancing security by reducing our dependence on oil. This represents a significant growth and exit opportunity for SCG.

THE BIODIESEL FUEL MARKET: Controlling Emissions

The scale of diesel emissions impacts is huge; 37% of all CO2 emissions can be attributed to off-road heavy equipment, rail, pipelines and waterway navigation. They are primary emitters of particular matter, NOx and sulfur. Diesel engines are often utilized for these applications becoming source point emissions, often within heavily populated urban centers. Diesels emit up to twenty times higher NOx emissions (g/kW-hr) than gasoline engines, contributing to ground level ozone and smog and resulting human health issues. NOx is estimated to account for approximately 5.0% of climate change emissions.

Distillate fuel consumption worldwide is close to 9.63 billion Bpy (barrels per year).  (@ $38/BO = $365.5 B). The U.S. accounts for 1.37 billion Bpy ($52B). The East Coast accounts for 449 million Bpy ($17B) of diesel annually. (US EIA).

Target markets include tugs and service vessels that operate in the New England area and within 200 miles of the coast. These vessels are the most impacted by new marine emissions regulations. Boiler applications, rail engines, heavy duty off-road and auxiliary engine use are also anticipated to be a significant market for Bio-EHF applications.

The market is large, even on a regional or sub-regional basis. While Bio-EHF will modify/replace some of the biodiesel and diesel currently sold into the market, it would be premature to draw any conclusions as to the level of substitution or permeation Bio-EHF may achieve in the currently defined biodiesel and diesel markets.


  • Several patents
  • Up to 100% renewable
  • Value added product – 10% of BD process is “waste” glycerol
  • Ready, direct to market end-product
  • Market to larger medium-sized diesel engines
  • Additional emission reductions
  • Transparent/Drop-in
  • Can reduce the use of and reliance on petroleum

We would be happy to discuss how this fuel could be created in your biodiesel manufacturing facility. Investors are also welcome to call (207) 274-4060 or email us.