Ecalene™Markets

Transport Fuels

The primary market for Ecalene™ is the transportation fuel market. Ecalene™ will eventually be sold as a stand-alone fuel for automobiles, trucks, buses, pleasure boats and jet fuel. Until more cars are designed as flex-fuel vehicles, the stand- alone fuel market will be limited to fleet sales to operators of flex-fuel vehicle fleets. Other major exceptions include the aviation fuels market where jet aircraft engines will require only minor modifications for use in existing aircraft. The US Air Force has already approved synthetic fuels for use in its jet aircraft.

Initial transportation sales of Ecalene™will go to the additive fuels market as an oxygenate or octane booster. Due to its low cost of manufacture, gasoline blenders will likely exceed the minimum volumes of Ecalene™required to meet targeted octane or oxygen levels for their gasoline. The demand for gasoline additives alone is likely to exceed PEFI's ability to keep up with market demand. The Superior performance characteristics of Ecalene, declining confidence in ethanol and rising crude oil prices make Ecalene™the most attractive transportation fuel product in the world.

Non-Transport Fuels

While the primary market for Ecalene™is likely to remain transportation fuels, Ecalene™may be used in other applications including feedstock for power plants. Power plants are experiencing difficultly obtaining permits for utilizing coal as a feedstock. Power plants are being required to utilize clean or renewable fuel sources for portions of their operations in order to receive their permits. Power plants using Ecalene™derived from MSW, wood waste or other cellulosic biomass would meet requirements for renewable fuel. Municipalities producing Ecalene™ with their MSW and sludge might provide power plants favorable pricing in an effort to maintain clean environments. Ecalene™could also potentially replace heating oil and coal in markets where natural gas is not currently available.

Ecalene™Technology Markets

Fossil Fuels

Coal, oil and natural gas producers will produce the most Ecalene™by volume. Each group is facing stricter environmental guidelines regulating the use of their products. Legislators are not only passing tougher emissions standard, they are specifically calling for the use of green fuels by consumers and commercial interests alike. Power companies are being issued quotas for green fuels are gasoline distributors and even the US Air Force. The Air Force is required to utilize 50% domestically produced green fuels by the year 2012.

Economics offer an even more compelling reason for fossil fuel companies to gear their operations to Ecalene. Nine dollar ($14) per ton high-sulfur low-btu coal can be transformed into $200/ton Ecalene™($2/gallon @ 100 gallons per ton of coal feedstock). Owners of stranded natural gas can now derive an income from gas holdings where their fields were inaccessible to gas pipelines and where no other cost effective production method exists. Even their regular natural gas production can be converted to Ecalene, a more profitable product on a price/btu basis.

Oil refining and distribution companies also have a strong economic incentive to produce Ecalene. They can produce Ecalene™more cheaply as a finished fuel than they can even purchase crude at today's prices. Imported crude must be transported to the US and then refined. This pushes finished gasoline prices considerably over their production cost of Ecalene. Some refiners already operate their own gasifiers. With their own gasification systems, real estate, production equipment, storage facilities and feedstock (coke, heavy fuel oil and other bottom of the barrel products), oil refiners can produce Ecalene™a great deal less expensively than PEFI (PEFI would have to purchase all of these things.). It is possible that oil refiners could produce Ecalene™for under $.60/gallon including a licensing fee to PEFI.

Waste Management

One primary market for Ecalene™technology is the disposal of large waste streams. MSW, sludge, wood waste and animal waste are the leading contenders for waste disposal using the Ecalene™system. Organizations responsible for disposal of these materials include waste management companies, municipalities, agricultural companies, and forestry concerns.

One unlikely source of waste material is natural gas that is flared (burned to the atmosphere) due to the lack of feasible technology to collect or manage the gas. The World Bank has estimated that approximately $50 Billion of natural gas is flared on an annual basis and is a leading contributor to global warming. The transportability of Ecalene™technology and its ability to operate in remote environments make it a natural solution for this natural gas waste problem. The Ecalene™technology can reach any location as it requires no utilities (water gas or electricity) to operate. Further, the technology can be placed on and operated from ships or barges to service offshore wells (a leading source of flared gas. Flared gas has $0 value when flared, consequently any profit received whatsoever from fuel manufacture is of great benefit.