Startup Village finalist

1. CCBL
Innovative technology for lube
blending
StartUp Village, June 2015
Skolkovo

2. 01/Problem and pain
Lubes is very in vast of technological areas
more than 40 000 000 tons produced in 2014 …
… but technology of production of lubes stacks ~40 years ago!
It can look gorgeous… But inside it’s not too far from
cooking pot
What does it mean for the lube manufacturer?
• High energy consumption (4 hours at +50 °С)
• Low flexibility of production (tanks is huge)
• Low dispersion (low quality, recycling)
Money losses!
More then $400M/year
world-wide energy costs

3. 02/Our solution
Meet CCBL!
First truly innovative tech for blending!
Competitives:
 Energy consumption (x7 more effective!)
 Small size (x5 smaller!)
 Small time of production (>x2 faster!)
 Flexibility (from 1 ton!)
 Extra-high quality
 Fully integrated in manufacture scheme!
Money for manufacturer!
Quality for consumer!Win-Win Case:
Our secret sauce
mechanical blending CCBL
• Break-through cavitational system
• More than 10 years R&D
• 7 generations of unit

4. Outside
Inside
03/Mobile CCBL unit

5. 04/History and status
• 2 pilot plants (Kaliningrad&Egorievsk)
• Labs proven technology (NAMI-Khim, Kracov
Institute, Afton Chemical)
• Mobile CCBL plant (6 ton/hour) for testing on
manufacturer side
• IP, certifications (Russia and EU) - done
• Proven interest from consumer
• High interest from lead engineering companies
We are ready to start commercialization!

6. 05/Meat the team
Steve King, CMO
• More than 25 years in lube business
• Ex. Regional Manager of Castrol-BP(Middle East)
• Ex. Marketing director BP (headquarters)
Konstantin Atamanov, CTO
• More than 30 years in lube engineering
• Ex. Engineer at Nesteoil, Galf-international
Our team – our core asset!
• 3 more engineers with great expirees in lube production
(ex. Gazprom-Neft, Lukoil, Rosneft, Chevron, Teboil)
• 3 high-professional partners in Poland, Germany, India
Sergey Medyanskiy, CEO
• 7 years in technology-based startups
• Experience in import hi-tech from Germany
(«RÖSLER Tyre Innovators» GmbH.)
• Serial entrepreneur
AND:

7. 06/Detailed planning. Our force
Clear focused step-by-step plan
• R&D partnership with TuTech Innovation GmbH for speed-up
penetration of CCBL in Germany and Benelux
• Marketing via conferences (ICIS World Base Oils & Lubricants
Conferences)
• Partnership with engineering companies (AST, ABB, Barath e.t.c)
• Marketing via industrial magazines
• Sales
We are looking for
• Partnership (engineering, distribution)
• Investments ($0,5M to accelerate marketing and sales)
you!
Just right now
Mobile unit on the go in Prista (Bulgaria)
for manufacture tests!
Partners

8. + proven high-efficiency technology
+ outstanding experienced international team
+ detailed road-map of development
Great opportunity!
Let’s discuss
ceo@gqoil.com
www.gqoil.com
.

9. Mobile plant construction
00/Appendix

10. 00/Appendix

11. 00/Appendix

12. CCBL - technical specifications
Parameters Unit The apparatus
Working pressure, maximum
МPа
(KGs/сm2)
0,25 (2,5)
Estimated pressure
МPа
(KGs/сm2)
0,375 (3,75)
The pressure test
МPа
(KGs/сm2)
0,375 (3,75)
Temperature of medium °С + 20
The working environment
composition lubricants
fire hazard yes
self-ignition temperature °С 300 - 350
Accuracy class according to OHSAS 18001 4
Performance m3/h 6-30
Dimensions
L mm 4200
H mm 1000
B mm 1210
GQOIL Innovation Europe
00/Appendix

13. Process mechanical blending in-line blending CCBL
Production of 30 MT 3 - 6 h 2 - 4 h 1 h
Production of 1 MT no no yes
Process temperature +50 - 60 ̊C +40 - 60 ̊C +20 ̊C
Dosing system no yes yes
Finished product yes no yes
Comparison CCBL and traditional technologies on key parameters
Indicator Unit
mechanical
blending
in-line
blending
CCBL
The average time for the manufacture of one lot products min. 180-300 90-300 60
A typical lot size of commodity products on a particular technology
МТ 3-20 15-60 1-60
Specific electricity consumption of pumps, blenders, heaters,
conveyers, etc.. (1MT on products)
Δ- small
□ - middle
O - high
O /□ Δ Δ
Specific steam consumption for heating (counting on 1MT
products)
Δ- small
□ - middle
O - high
O /□ □ / Δ no
00/Appendix

14. Averaged a comparative assessment of the cost-effectiveness
Indicator Unit
Small-scale installations Large-installation
mechanical
blending
CCBL
in-line
blending
CCBL
A lot size of commodity products МТ 6 6 40 40
Time for the manufacture of one lot products min. 180-300 60 120-180 60
The average time for the manufacture of one lot
products
min. 240 60 150 60
Electricity consumption (pumps, blenders…) kWt 42 14 60 22
Steam consumption (for heating) m3 1,8 - 9 -
Time production in recalculation on 1 MT min. 40 10 3,75 1,5
Electricity consumption in recalculation on 1 MT kWt 7 2,3 1,5 0,55
Steam consumption in recalculation on 1 MT m3 0,3 --- 0,225 ---
The cost of electricity €/kWt 1,4 1,4 1,4 1,4
The cost of steam €/МТ 10 --- 10 ---
The cost of electricity to produce 1 MT €/ МТ 9,80 3,22 2,10 0,77
The cost of steam to produce 1 MT €/ МТ 3 0 2,25 0
Total cost to produce 1 MT €/ МТ 12,80 3,22 4,35 0,77
The costs of production capacity at 40,000 MT/year Thous. €/year 512,0 128,8 174,0 30,8
Benefits (savings) at replacement the current
technology by CCBL
Thous. €/year 383,2 --- 143,2 ---
Reducing the cost of the final process of blending at
replacement by CCBL
% 75 --- 82 ---
00/Appendix

15. 1. The preparatory stage:
 loading and mixing additives
at t=+20 °C in separate tank;
 Mixing in main tank with base
oils or use dosing system;
2. The main stage:
 cavitation ”cold” blending
at t = +20 °C
3. Finish stage:
 pumping to the storage tank,
laboratory analysis, packaging
10-20 min 6 - 30 MT/h
CCBL – basic scheme
PREMIX TANK FINISHED PRODUCT
TANK
00/Appendix

16. BASE OIL 1 BASE OIL 2 BASE OIL 3 BASE OIL 4 BASE OIL 5 BASE OIL 6
BULK BASE OIL
ADDITIVE 1 ADDITIVE 2 ADDITIVE 3 ADDITIVE 4
BULK ADDITIVES PACKAGED ADDITIVES
BLENDING AREA
FINISHED
PRODUCT
TANK
PREMIX TANK
Lube Oil Blending Plant with CCBL - Schematic Diagram
00/Appendix

17. 00/Appendix
1 year 2 year 3 year
1Q 2Q 3Q 4Q 1-4Q 1Q 2Q 3Q 4Q 1-4Q 1Q 2Q 3Q 4Q 1-4Q
Unit 8 ton/hour 1 1 2 1 1 2 1 1 1 1 4
Unit 16 ton/hour 0 1 1 2 1 1 1 3
Unit 30 ton/hour 0 0 1 1
Total units sold 0 1 1 2 2 2 4 4 6 6 7 9 12 14 14
Sales plan
Price Cost
Unit 8 tonn/hour 32M rub. 10M rub.
Unit 16 tonn/hour 43M rub. 12M rub.
Unit 30 tonn/hour 54M rub. 15M rub.
1 year 1 year 1 year
Revenue 32 450 000р. 259 800 000р. 423 100 000р.
OPEX 20 519 200р. 37 498 585р. 25 533 980р.
EBIT 2 430 800р. 179 301 415р. 308 566 020р.
Key financials