Bridging the Gap: Stepone Tech Tackles Renewable Fuel Conversion in India with International Collaboration and Local Partnerships
Stepone Tech, a Finnish company that develops technology to convert gasoline engines to run on biofuels, is collaborating with the Indian Ministry of Energy to establish standards for renewable fuels in the country. The company is currently launching a distribution pilot project with a major local gas station chain and seeking international funding.
Stepone Tech has developed technology that can convert a standard gasoline engine to run on ethanol or a blend of ethanol and gasoline. This conversion involves installing an additional device in the vehicle, costing less than 600 euros in Finland and around 300 euros in India. The company claims that its products can reduce fossil greenhouse gas emissions by up to 80 percent compared to traditional gasoline engines. With the goal of increasing the use of renewable fuels, India is planning to establish standards to support this transition, with ethanol being one of the key raw materials.
The Indian market presents an opportunity for Stepone Tech as approximately 20 million new combustion engine vehicles are sold in the country each year. However, transitioning to electric cars is challenging due to high electricity costs, coal-based electricity production, and incomplete electricity grid coverage. As the company expands its distribution network in India through partnerships with gasoline distributors, it is also exploring options for manufacturing within the country to mitigate heavy import duties in the long run.
In addition to its operations in India, Stepone Tech sees potential in the United States, which has nearly 300 million combustion engine vehicles. The company is currently in discussions with international capital investors to secure funding in the range of 5-10 million euros. Despite potential competition and concerns about product copying by Asian companies, Stepone Tech stands by the quality and effectiveness of its tested technology, appealing to consumers looking for reliable solutions for their vehicles. Founded in 2012, Stepone Tech is primarily owned by its founders, as well as Suomen Vaikuttavussijoitus and C2 Ventures, with a turnover of 6.1 million euros in 2022 and 25 employees at its headquarters and production facility in Pirkkala.
