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1. Welcome!

2. Our Mission Statement: Fuel Direct is committed to providing superior fuel performance technology for improving mileage, reducingtoxic emissions, andincreasingthe lifespan of all gasoline and diesel engines.

3. TECHNICAL/MECHANICAL Product Benefits – Xp3 (2 formula’s) • Prevents Algae from growing (effective algae biocide) • Disperses water for a smoother running engine • Cleans and lubricates valves, cylinder heads, and fuel injectors • Reduces emissions • Improves performance and mileage Manufactured by Xp Lab, San Diego, CA

4. TECHNICAL/MECHANICAL Product Benefits – Xp3 • Protects against fuel gelling and will take No. 2 (Summer blend diesel) down to -15F below zero • It has never harmed a single engine since 1989 • Reduces contaminants in used oil by 50% • Reduces corrosion to prolong life of engine • Improves stabilization, lubricity, and detergency of the fuel Manufactured by Xp Lab, San Diego, CA

5. TECHNICAL/MECHANICAL Product Benefits – Xp3 • Changes the micron size of the fuel (makes the particles smaller, allowing for more complete combustion and resulting in more power with less fuel and less emissions • Xp3 Diesel treatment ratio is 1 to 4,000 • Xp3 Gas treatment is 1 to 3,200 Manufactured by Xp Lab, San Diego, CA

6. TECHNICAL/MECHANICAL Product Benefits – Xp3 • Xp3 is formulated by expert researchers, technicians and engineers at state of the art laboratories throughout the United States and other parts of the world. • Xp3 has only been available to the United States since 2010. • Xp3 has a guaranteed level of excellence and rigorous quality control. Manufactured by Xp Lab, San Diego, CA

7. TECHNICAL/MECHANICAL Other Products: Xp3: • Promises 1-3 benefits in one product • Contains aromatics • Uses solvent-based ingredients • Potentially weakens seals and O-rings • Check MSDS info! • Promises 7 benefits in one product • Aromatic, alcohol, naphtha free • Uses organic compounds and synthetic resin-based ingredients • Does not weaken seals or O-rings • 100% biodegradable

8. TECHNICAL/MECHANICAL Plenty of ineffective products out there: • It would take 3-5 different products from our competitors to achieve the benefits of our single product, Xp3. • Aromatics are in many competing products. Aromatics may improve mileage, but also can cause engines to wear our faster.

9. TECHNICAL/MECHANICAL How Xp3 Protects Your Equipment: Solvent-Based Ingredients versus Synthetic Ingredients COMPETITION Xp3 • Can weaken seals • Can weaken O-rings • Do not lubricate • Won’t weaken seals • Won’t weaken O-rings • Dramatically Improves Lubricitity

10. TECHNICAL/MECHANICAL Knowing the Fuel Industry: • Fuel Industry is a multi-billion dollar industry • It is larger that wellness and travel industries COMBINED • Fuel will be consumed regardless of the economy (recession-proof) • People love to save money, especially on something they use everyday • Fewer maintenance costs - you can help save people money

11. TECHNICAL/MECHANICAL Knowing the Fuel Industry: What is fuel and why should it be improved?

12. Fuel TECHNICAL/MECHANICAL • Usually a combustible substance that releases energy after it is ignited, and reacts with the oxygen in the air. • Hydrocarbons are by far the most common source of fuel used. Hydrocarbon is a compound consisting entirely of hydrogen and carbon. • The majority of hydrocarbons are mostly found in crude oil, where decomposed organic matter provides an abundance of carbon and hydrogen.

13. Refining Fuel TECHNICAL/MECHANICAL • Petroleum refining is the process of separating the many compounds present in crude petroleum. This process is called fractional distillation where the crude oil is heated; the various of the compounds boil at different temperatures and change to gases; and are later re-condensed back into liquids.

14. Refinery Distillation Tower: TECHNICAL/MECHANICAL

15. The crude petroleum is heated and changed into a gas. The gases are passed through a distillation column which becomes cooler as the height increases. When a compound in the gaseous state cools below its boiling point, it condenses into a liquid. The liquids can be drawn off the distilling column at various heights.

16. TECHNICAL/MECHANICAL • Although all fractions of petroleum find uses, the greatest demand is for gasoline. One barrel of crude petroleum contains only 25-35% gasoline. • Transportation demands require that over 50% of the crude oil be converted into gasoline. To meet this demand some petroleum fractions must be converted to gasoline. This may be done by "cracking" - breaking down large molecules of heavy heating oil; "reforming" - changing molecular structures of low quality gasoline molecules; or "polymerization" - forming longer molecules from smaller ones.

17. Fuel Names and Classification TECHNICAL/MECHANICAL • Small molecules like those in propane gas, naphtha, automobile gasoline, and jet fuel have relatively low boiling points, and they are removed at the start of the fractional distillation process. • Heavier petroleum products like diesel and lubricating oil are much less volatile and distill out more slowly, while bunker oil is literally the bottom of the barrel; the only things more dense than bunker fuel are carbon black feedstock and bituminous residue which is used for paving roads (asphalt) and sealing roofs.

18. Fuel Names and Classification TECHNICAL/MECHANICAL • Bunker fuel is technically any type of fuel oil used aboard ships and heavy boilers. It gets its name from the containers on ships and in ports that it is stored in; in the past, they were coal bunkers but now they are bunker fuel tanks. • Diesel fuel is normally called D-2, Marine diesel is normally called No. 4, and the heaviest of the fuels are called No. 5, or 6. Since No. 6 is the most common, "bunker fuel" is often used as a synonym for No. 6. No. 5 fuel oil is also called navy special fuel oil or just navy special; No. 5 or 6 are also called furnace fuel oil (FFO).

19. Maritime Fuel Oil Classification: TECHNICAL/MECHANICAL MGO (Marine gas oil) - roughly equivalent to No. 2 fuel oil, made from distillation only. MDO (Marine diesel oil) - A blend of heavy gas/oil that may contain very small amounts of black refinery feed stocks, but has a low viscosity, so it does not need to be heated for use in internal combustion engines. - contains some heavy fuel oil, unlike regular diesels IFO (Intermediate fuel oil) - A blend of gas/oil and heavy fuel oil, with less gasoil than marine diesel oil. HFO (Heavy fuel oil) - Pure or nearly pure residual oil, roughly equivalent to No. 6 fuel oil. MFO (Marine fuel oil) - same as HFO.

20. TECHNICAL/MECHANICAL Fuel Viscosity: Lighter fuels have low viscosity, and heavy fuels with high viscosity may require heating, before the fuel can be pumped from a bunker tank.

21. TECHNICAL/MECHANICAL ULSD (Ultra Low Sulfur Diesel): Much less sulfur content

22. TECHNICAL/MECHANICAL ULSD (Ultra Low Sulfur Diesel): Why is sulfur important? For many decades, it was taken for granted that all distillate fuels, with the possible exception of kerosene, contained enough inherent lubricity to protect against engine wear. There was no reason to define lubricity or to establish a test method to quantify a lubricity value. For the most part, it was assumed that any fuel had the ability to provide adequate lubricity as one of its innate and irreversible properties. However, everything changed once the EPA began to look into diesel fuel exhaust emissions and, early on, identified sulfur as one of the main sources for objectionable smog-causing air pollutants, oxides hazardous to health and long term corrosive acid rain damage. By the late ‘90s, the EPA was exploring regulations to reduce the sulfur content of distillate fuels, especially on-road diesel. As the likelihood of new regulations became more imminent and oil refiners investigated available processes available for crude oil desulfurization, one critical piece of information became obvious—that any significant reduction in sulfur content would result in a significant reduction in fuel lubricity as well. Realizing this correlation, ASTM launched a task force to include lubricity requirements as part of its existing ASTM D975 Standard Specification for Diesel Fuels. Concurrently, another task force was assigned to determine an effective laboratory test method to measure lubricity values. www.fueloilnews.com

23. TECHNICAL/MECHANICAL ULSD (Ultra Low Sulfur Diesel): Why is sulfur important? Lubricity: Lubricity is a measure of the fuel's ability to lubricate and protect the various parts of the engine's fuel injection system from wear. The processing required to reduce sulfur to 15 ppm also removes naturally occurring lubricity agents in diesel fuel. To manage this change the American Society for Testing and Materials (ASTM) adopted the lubricity specification defined in ASTM-D975 for all diesel fuels; this standard went into effect January 1, 2005. Lubricity agents must be added to ULSD to meet lubricity requirements of engines. Refineries typically add only enough to meet minimum ASTM-D975 standards.

24. TECHNICAL/MECHANICAL ULSD (Ultra Low Sulfur Diesel): The Need for Added Lubricity A single tankful of fuel with extremely low lubricity can cause a fuel pump to fail catastrophically. The lubrication mechanism in diesel fuel is a combination of hydrodynamic lubrication and boundary lubrication. In hydrodynamic lubrication, a layer of liquid prevents contact between the opposing surfaces. For diesel fuel pumps and injectors, this liquid is the fuel itself. Diesel fuels that meet ASTM-D975 specifications provide proper hydrodynamic lubrication. Lubricity agents must be added to ULSD to meet lubricity requirements of engines. Refineries typically add only enough to meet minimum ASTM-D975 standards.

25. TECHNICAL/MECHANICAL Biofuels: The two most common types of biofuels used today are biodiesel and ethanol. biodiesel ethanol made by combining alcohol (usually methanol) with vegetable oil, animal fat, or recycled cooking grease. An alcohol, the same as in beer and wine (although ethanol used as a fuel is modified to make it undrinkable).

26. TECHNICAL/MECHANICAL • Alcohol fuels are produced by fermentation of sugars derived from wheat, corn, sugar beets, sugar cane, molasses and any sugar or starch (like potato and fruit waste, etc.)

27. TECHNICAL/MECHANICAL Biodiesel: • A vegetable oil or animal fat-based diesel fuel. • It can be used alone, or blended with petrodiesel. Blends of biodiesel and conventional hydrocarbon-based diesel are products most commonly distributed for use in the retail diesel fuel marketplace. Much of the world uses a system known as the "B" factor to state the amount of biodiesel in the fuel mix: 100% biodiesel is referred to as B100, while 20% biodiesel, 80% petrodiesel is labeled B20 5% biodiesel, 95% petrodiesel is labeled B5 2% biodiesel, 98% petrodiesel is labeled B2.

28. TECHNICAL/MECHANICAL Biodiesel: Biodiesel is hydroscopic, It contains 20 to 25 times more water than diesel (ie: a bucket of diesel (D-2) can contain 60ppm of water. But a B100 biodiesel bucket can contain 1200 to 1500ppm of water).

29. TECHNICAL/MECHANICAL Biodiesel: This is the damage result after 600 hours of use of B-80 fuel, (80% derived from soy and 20% from petroleum).

30. TECHNICAL/MECHANICAL Biodiesel: This is the damage result after 200 hours of use of B-100 derived from sunflower

31. TECHNICAL/MECHANICAL Xp3’s water dispersion ability will prevent the damage that the use of these biofuels can generate in the injection system and engines.

32. TECHNICAL/MECHANICAL Biofuel - Ethanol: • Ethanol fuel is the most common biofuel worldwide, particularly in Brazil, and now in the USA.

33. TECHNICAL/MECHANICAL Biofuel - Ethanol: • Ethanol can be used in engines as a replacement for gasoline. It can be mixed with gasoline at any percentage. Most existing car engines can run on blends of up to 15% bio-ethanol with petroleum/gasoline. • Ethanol has a smaller energy density than gasoline. This means that it takes more fuel (volume and mass) to produce the same amount of work.

34. TECHNICAL/MECHANICAL Biofuel - Ethanol: • Since 1976 the Brazilian government made it mandatory to blend ethanol with gasoline. The mandatory blend of ethanol in the gasoline, has fluctuated between 10% to 25%. • Those quantities require minor adjustments to the regular gasoline engines. • Xp3 has been in the Brazilian market since 1995 and the product technology has been adjusted and developed to improve biofuels, and solve any problem they may cause.

35. TECHNICAL/MECHANICAL Additives Added by Fuel Producers: • Oxidation stability • Antioxidants • Metal deactivators • Gasoline distribution • Corrosion inhibitors • Biocides • Anti-static • Drag-reducing agents • Odorants • To protect vehicle fuel system • Corrosion inhibitors • Demulsifies • Anti-icing • Detergents • Deposits control

36. TECHNICAL/MECHANICAL WHY DO FUEL USERS REQUIRE ADDITIONAL FUEL ADDITIVES?

37. TECHNICAL/MECHANICAL Fuel Additives: • The combustion process that takes place in the ignition is far from ideal • To obtain the maximum thermal efficiency for burning hydrocarbon fuel, it’s necessary to release the fuel’s heat energy under constant-volume conditions. • Such behavior requires that the combustion take place instantaneously and homogeneously, with no variation from one engine cycle to the next, or from one year to the next year. • Ideal combustion behavior with the fuel and air mixture requires that the ignition process would be perfectly repeatable. The flame process would be both infinitely fast and repeatable so no heat would be lost to the wall of the combustion chamber and cylinder, and no emissions of partially burnt or other undesirable combustion products would remain. – which cause excess wear on the engine.

38. TECHNICAL/MECHANICAL FUELS REQUIRE ADDITIVES TO IMPROVE THE COMBUSTION EFFICIENCY • Even if fuel producers added sufficient corrective additives to the fuel, (which they do not do) fuels require constant improvement. Fuel starts degrading immediately after manufacturing. This is one of the reasons we need to stabilize it. • The change of fuel specs, water levels in fuel, varying injection systems, engine changes and wear, requires constant fuel improvement.

39. TECHNICAL/MECHANICAL WHY IS WATER A PROBLEM IN FUELS?

40. TECHNICAL/MECHANICAL • Negative reaction with water and sulfuric acid • Negative reaction with water and vanadium. • Fuel oxidation • Increases growth of bacteria • If diesel and water are pumped into ignition chamber, the water vapor formed due to high temperature and pressure will prevent oxygen to react with diesel resulting in poor combustion.

41. TECHNICAL/MECHANICAL • When the water drops exceed a certain size, they are no longer stable and detach. • Water contaminates the fuel and prevents it from burning as powerfully as pure gasoline or diesel. Water SeparationDispersed Water w/Xp3

42. TECHNICAL/MECHANICAL Detergency and Fuel Efficiency: With the introduction of the new fuel injection systems and the extremely close engine tolerances, the slightest amount of foreign contamination can cause damage to many of the of the parts in the fuel delivery system. Deposit buildup will cause increased friction and produce excessive wear to the injection system components. The result is an incomplete injection of the needed fuel amount resulting in poor combustion, and low power. Usually drivers have the tendency to downshift the transmission, step in the accelerator, and advance the fuel throttle setting. This increases the fuel flow and reduce the economy.

44. TECHNICAL/MECHANICAL Detergency and Fuel Efficiency: The use of Xp3 will stabilize the fuel, disperse water, produce a cleaner combustion and will keep the injection system and injector nozzle holes unobstructed. This allows the fuel injected into each cylinder to be properly distributed in the combustion chamber creating a complete combustion of the fuel. An even spray will provide a correct mix between fuel and air, and produce a maximum conversion of the BTU energy content into usable horsepower, achieving maximum efficiency.

46. TECHNICAL/MECHANICAL Good Injection Pattern:

47. TECHNICAL/MECHANICAL Engine Cylinders: • Small particles of carbon will slip past the seal rings into the engine. • Small carbon particles can damage your engine when combined with heat and pressure. • The more efficient combustion, the fewer carbons in the cylinders.

48. TECHNICAL/MECHANICAL The wear of pistons and cylinders will reduce fuel efficiency:

49. TECHNICAL/MECHANICAL Boiler Fuel: • Boilers and furnaces use diesel and/or heavier fuels #4 to #6. • Heavy fuels present different challenges, they contain sulfur, vanadium and many other minerals that require attention.

50. TECHNICAL/MECHANICAL Vanadium Corrosion Effect: • The problem with the vanadium is the high corrosion temperature. For the vanadium to be corrosive, it has to undergo a chemical reaction, when oxidizing conditions exist, and become a “Vanadium Pentoxide” • The vanadium will go through different stages of oxidization, as follows: • 4V + 3O2 ------> 2V2O3 • 2V2O3 + O2 ------> 2V2O4 • 2V2O4 + O2 ------> 2V2O5 = VANADIUM PENTOXIDE • The ash deposits of this material will create the high temperature corrosion problem.