PATERSON, N.J. -- Veridium Corp.'s industrial design division has filed for patent protection for a way to distribute renewable fuels that is designed to encourage gas station owners and consumers to use renewable fuels.
The U.S. government has encouraged producers and blenders of renewable fuels with tax credits. Veridium's new pump technology is designed to enable downstream distributors, gas station owners and consumers to participate in the economic benefit of the tax credits.
The applicable tax credit is $1 per gallon for [image-nocss] every gallon of biodiesel that is blended with petroleum-based diesel, and it is available specifically to the taxpayer that actually blends the two fuels. These companies typically blend the two fuels at 2%, 5% and 20% concentrations, which correspond to the B2, B5 and B20 blends, and the tax credits have helped these companies offset the cost of the related infrastructure.
Veridium said it believes that the tax credits can be used similarly to help drive infrastructure into gas stations with the goal of increasing the number of stations that sell clean fuels. The new fuel pump is designed to allow the consumer to select a biodiesel blend (from 0% to 99%). This qualifies station owners for tax credits proportionate to the blend and lets them pass some of the economic benefit to consumers with lower prices.
David Winsness, CEO of Paterson, N.J.-based Veridium's industrial design division, said, Our design objective for the new pump was to help advance the goals of the tax credit while helping to increase the use of clean fuels by more consumers more quickly.
The company plans to exclusively license the technology to its joint venture partner, Mean Green BioFuels Corp., which will manufacture and sell private-labeled fuel pumps to station owners and large-quantity consumers of diesel fuel, first in regions that are near biodiesel production facilities and terminals.
Veridium and Mean Green are portfolio companies of GreenShift Corp., a publicly traded business development company whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and speed transformational environmental gains.
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