Media headlines give the impression that electric vehicles (EVs) are our definitive future.
For example, Goldman Sachs says “The future of four wheels is all electric”
Forbes says “EVs are Cleaner and Have Brighter Futures Than Traditional Cars”
And Bloomberg says “It’s Done. The Future is Battery-Powered Electric Cars”
But Toyota, the world’s largest automaker, sees a future that looks very different…
Forget about EVs, it says, and forget about cars that run exclusively on gas. According to Toyota, the real future is a car that can run on almost anything — from gas to hydrogen to biofuel.
So today, I’ll introduce you to Toyota’s vision for the future…
And show you a way to play it that could potentially deliver 5,400% returns.
The World’s Top Automaker
According to Bloomberg, Toyota sold a record 11.2 million passenger vehicles in 2023. That makes it the world’s top automaker.
Yet this figure includes just 100,000 EVs. That’s less than 1% of the total. Clearly, the hype is still far bigger than the reality.
In the meantime, hybrid vehicles — which can run on gas or electric power — are soaring in popularity. It seems consumers appreciate their versatility…
Which is exactly the benefit Toyota is focused on right now.
An Engine Reborn
Last week, Toyota introduced “an engine reborn.”
That’s how the automaker described its spin on the traditional internal-combustion engine.
The company announced it would soon offer compact engines that not only run on traditional gasoline, but also on “green” fuels like hydrogen and bioethanol. They can even be paired with zero-emissions electric motors in hybrid vehicles.
Why introduce this new type of engine? Two main reasons:
First, increasingly stringent standards have forced automakers to create engines that release fewer emissions.
And second, a slowdown in EV growth has led to a renewed focus on engines that can run on different types of fuel.
But here’s the thing. As car companies focus on making engines more efficient and versatile, other companies are focusing on something else:
Increasing the efficiency of the fuel that goes into these cars!
The Market for Fuel Additives
Globally, fuel is a $3.5 trillion industry. Roughly 135 billion gallons of gas are consumed each year in the U.S. alone. That’s about 370 million gallons per day.
But fuel is expensive. And depending on the type and quality, it’s also inefficient.
To help minimize the negative effects of fuel, and to enhance its capabilities, many producers incorporate additives. These additives offer specific objectives.
Some extend fuel’s lifespan. Some aim to make fuel more powerful. Others help clean out a car’s engine by removing heavy deposits.
Today, the global market for fuel additives is worth six billion dollars. But only one additive has the potential to impact nearly all types of fuel, from gasoline to diesel to alternative biofuels…
And that could make it a perfect fit for Toyota’s next-gen engines…
Introducing FuelGems
The company behind this additive is called FuelGems.
FuelGems is an energy company based in Austin, Texas. Using patented nanotechnology, it’s created a fuel additive that decreases emissions and required fuel usage, and increases engine lubrication and fuel efficiency.
This additive is environmentally-friendly, powerful, versatile, and affordable. And it has the potential to make gasoline, diesel, and biofuel both cleaner and more efficient.
FuelGems spent close to a decade formulating and testing this additive. But while its creation required complex chemical engineering and nanotechnology, its application is user-friendly:
Gas stations put it in their fuel tanks — and then drivers simply add it when filling up!
Significant Revenue Potential
Because it’s targeting a market as big as fuel, FuelGems’ revenue potential is significant.
For example, providing its additive to a gas-station operator with 500 stations would generate about twelve million dollars in annual revenue. A single oil refinery would bring in another twenty-seven million dollars annually.
For reference, there are 220 refineries in the U.S. and Europe, and 220,000 gas stations.
According to FuelGems, securing just twenty customers — for example, ten refineries and ten gas-station operators — could potentially enable it to generate $420 million in annual revenue.
But the global market for fuel is worth three trillion dollars, so revenues could be even higher.
Perhaps this potential is why so many professional and angel investors have already claimed a stake in FuelGems.
Should you join them?
The Pros and Cons of an Investment
FuelGems is currently raising funds from investors like you. Its valuation is about eighteen million dollars and the minimum to invest is $100.
Like any investment, there are pros and cons. For this one, on the “pro” side:
- FuelGems’ team includes a CEO who’s had multiple startup exits, along with physics professors, chemical engineers, and award-winning scientists.
- The company was recently granted its first U.S. patent and has filed for several others related to its technology and production methods.
- And its pipeline contains more than 200 potential customers, including fifty companies that use a combined thirty billion gallons of fuel a year.
Furthermore, as noted above, the profit potential for an investment like this is significant.
On average, specialty-chemical companies trade at 10x sales. So even if FuelGems reached just $100 million in annual revenue — a fraction of its potential — that could potentially lead the company to a value of one billion dollars.
Meaning, if you invested today, you’d be sitting on potential returns of more than 5,400%.
Of course, there are “cons” to every investment, too…
For example, FuelGems has yet to convert much of its pipeline into paying customers. If this trend continues, perhaps its revenues won’t materialize in the way the company is expecting.
It could also run into issues outsourcing production of its additive. Furthermore, any new government regulations for energy or fuel could lead to major headaches.
To sum up the cons, there is plenty of business and investment risk here.
A Great Place to Start Your Search
Keep in mind, this is an early-stage venture. So be sure to do plenty of research before making an investment decision.
But if you’re intrigued by what FuelGems has created — and you believe an additive like this could help usher in the real future of transportation — this could be a good one to explore.
Happy investing.
Please note: Crowdability has no relationship with any of the startups or companies we write about. We're an independent provider of education and research on startups and alternative investments.
Best Regards,
Editor
Crowdability.com
