KiOR differs from most traditional biofuels companies because its end products are “drop in” gasoline, diesel, and fuel oil blendstocks, which are similar to their fossil fuel-based counterparts. This means KiOR’s fuels:
Are the energy equivalent of their fossil fuel based counterparts;
Do not require changes to car engines to warrant significant production scale-up unlike other biofuels (e.g., E85/Flex fuel vehicles for ethanol);
Do not face a “blend wall” (eg, E15), but instead could be combined with conventional gasoline and diesel fuels at various percentages;
When blended with conventional fuels, the final fuel products can meet standard, ASTM International specifications for finished gasoline and diesel fuels;
Can be delivered to consumers through established distribution channels, from pipelines to gas stations, and used in cars in the road today.
Unlike other renewable fuels such as ethanol, which is alcohol-based, or biodiesel, which is composed of fatty acids, KiOR’s fuels can leverage existing equipment and infrastructure. This would allow KiOR to be able to scale its technology quickly with lower downstream capital requirements and lower market acceptance risk.