FuelActive has announced new investment, grant funding, and leadership changes as it drives the global expansion of its innovative technology solutions for diesel engines.
FuelActive’s technology ensures the cleanest fuel available is supplied to the fuel lines of diesel engines and is the first line of protection against contaminated diesel in many industries including mining, it says.
The patented FuelActive® unit replaces the standard pick-up pipe and only picks up the cleanest fuel in the tank, according to the company. This is achieved by using a floating pick-up pipe to draw fuel from the upper level; leaving water and sediment behind at the bottom of the tank.
Such technology has previously been used successfully on a Komatsu 930E haul truck equipped with a Cummins QSK60 engine at the Los Pelambres mine, in Chile.
Benefits to operators include the elimination of fuel-related breakdowns, reduction in accelerated maintenance costs and extended injector life, the company says.
“When fitted from new, an engine stays closer to its specified performance for longer and is more reliable,” FuelActive says. “Burning cleaner diesel reduces toxic engine emissions, supporting compliance with clean air regulations.”
In terms of equity investment, £500,000 ($635,384) has come from new institutional investor, the Development Bank of Wales.
Richard Thompson and Andrew Critchley, from the bank’s specialist tech ventures team, said: “FuelActive has the potential of creating a global cleantech success story. Its ability to positively influence the performance of diesel engines, which will be in use for the next 30 years, could have a real impact on the environment.
“This is our first co-investment with the Adjuvo network, who enhance FuelActive’s position. We look forward to working with Nick Massey and the FuelActive team, and to further co-investments with Adjuvo.”
Private equity investment syndicate Adjuvo, which initially invested in FuelActive during 2016, has contributed a further investment of £750,000.
“Adjuvo identifies high growth opportunities that benefit from a network of experienced investors who provide advice and commercial introductions within their wide networks,” FuelActive said.
FuelActive has also recently been successful in its bid to win an Innovate UK Smart Grant for a project value of £500,000. The grant award will evolve the current technology to add digital capability, the company said.
“Smart Grants are awarded to businesses which deliver ambitious or disruptive innovations that can make a significant impact on the UK economy and beyond,” it explained.
Along with these financial announcements, the company confirmed that Nick Massey had become CEO of the company, with Martin Leahy taking on the new role of Vice Chairman.
Massey has a track record of delivering growth within private equity and publicly traded environments, according to the company. His background includes private equity stints for Goldman Sachs, with Coca-Cola and PA Consulting Group.
He said: “I’m honoured to be joining FuelActive with the backing of the Development Bank of Wales and Adjuvo investors. The problems of fuel contamination are universal and FuelActive’s technology can help operators mitigate the costs, capture upside in capital efficiency and contribute to our right to clean air.”
FuelActive emerged in 1998 through the vision of Founder Mike James, an engineer for over 40 years. After designing a proven solution to fuel contamination, an extensive period of R&D followed in conjunction with universities, government funding and investment from Adjuvo.