O2Diesel Enters Final Phase of US Air Force Testing Prior to Deployment
December 12 2007 - 9:25AM
Marketwired
NEWARK, DE announced today that it received a "Projects Status
and Outlook" update from the US Air Force (USAF), and has entered
the final phase of testing. The USAF has been conducting a
comprehensive performance research project to evaluate O2Diesel's
clean burning renewable fuel alternatives for non-tactical military
vehicles and other diesel powered equipment since 2002, with
testing expected to conclude in the summer of 2008.
The update states that:
"Since 2002, the US Congress has earmarked almost $5 million in
funds for a US Air Force comprehensive research project that
evaluates O2Diesel(TM) as a fuel for non-tactical military vehicles
and other diesel-powered equipment such as electric generators.
Nellis Air Force Base (AFB) and the Nevada Air National Guard
became the first military users of O2Diesel(TM) in demonstrations
with their fleets. In addition, the Air Force is developing a new
environmentally friendly fuel for the DoD that will contain at
least 20% renewable content, including O2Diesel's proprietary
additive, for a net 28% displacement of diesel petroleum fuel. This
new fuel is already in use with no known adverse issues at Nellis
AFB. The code name for the new fuel is 028.
"The emissions, durability, and operability tests have so far
proven this technology and the Air Force benefits directly from the
experience gained. The next phase of this project starts on
December 7, 2007 involving cold exposure at Minot AFB ND, and
subsequently at Barksdale AFB in Louisiana for high humidity
testing. These test will conclude in the Summer of 2008."
The update concludes by stating that: "The Air Force is pleased
with the results obtained up to this time and Pentagon fuel-vehicle
sustainment logistics planners are tentatively projecting to deploy
this technology for continental Air force use, contingent on the
results of the cold and humid tests. In the event that the
cold/humid weather tests show limitations, it is the intention to
implement even with restricted use to meet Presidential Order
13423."
"Presidential Order 13423 requires all agency fleets of more
than 20 vehicles to reduce the fleet's total consumption of
petroleum products by 2 percent annually through the end of fiscal
year 2015, and increases the total fuel consumption that is
non-petroleum-based by 10 percent annually," said Eric Burgeson,
former Chief of Staff to the Department of Energy (DoE) and now
advisor to O2Diesel Corp. "The DoD is the single largest user of
distillate fuels in the continental U.S. with purchases in FY06
exceeding $5.5 billion."
Alan Rae, CEO of O2Diesel Corporation, stated, "This endorsement
is extremely satisfying, and the opportunity that comes with it is
the result of all the hard work and effort dedicated to this
program by both O2Diesel and the personnel at the Air Force. Given
the scale of the DoD's diesel fuel use there is the potential for
up to 120 million gallons of O28 by 2009."
"Our work with the Air Force has proven to be very exacting but
invaluable," continued Rae. "The depth of knowledge gained through
testing both in the laboratory and in the field has been
indispensable in proving O2Diesel(TM) both as a standalone solution
to enhancing air quality but also as the basis for the development
of new renewable fuel blends such as O28. The final months of
testing with the Air Force will take place in some of the harshest
climatic conditions to be found anywhere but our experience gained
in markets such as the EU, India and Brazil, gives us confidence in
our ability to meet these challenges."
More About O2Diesel: The Company and Its Fuel Technology
O2Diesel Corporation (AMEX: OTD) and its U.S. subsidiary
O2Diesel, Inc. is a pioneer in the commercial development of a
cleaner-burning diesel fuel alternative that provides exceptional
performance and environmental qualities for centrally fueled fleets
and off-road equipment of all kinds. Engineered and designed for
universal application, O2Diesel(TM) is an ethanol-diesel blend that
substantially reduces harmful emissions without sacrificing power
and performance. Extensive independent and government-recognized
laboratory and in-use field tests have demonstrated the
effectiveness of O2Diesel(TM) -- the introduction of this
cost-effective, cleaner-burning diesel fuel is now underway in the
United States and other global markets. For more information please
refer to www.o2diesel.com.
Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding
O2Diesel Corporation's business which are not historical facts are
'forward-looking statements' that involve risks and uncertainties.
Forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
from those reflected in the forward-looking statements, including,
without limitation, the failure to obtain adequate financing on a
timely basis and other risks and uncertainties. Actual results
could differ materially from those projected in the forward-looking
statements, as a result of either the matters set forth or
incorporated in this report generally or certain economic and
business factors, some of which may be beyond the control of
O2Diesel. These factors include adverse economic conditions, entry
of new and stronger competitors, inadequate capital, unexpected
costs, failure to gain product approval in the United States or
foreign countries for the commercialization and distribution of our
products, failure to capitalize upon access to new markets and
failure in obtaining the quality and quantity of ethanol necessary
to produce our product at competitive prices. O2Diesel disclaims
any obligation subsequently to revise any forward-looking
statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or
unanticipated events. "O2Diesel" and "CityHome" are trademarks of
O2Diesel Corporation.
Contact: O2Diesel Corporation Alan Rae +1 (302) 266 6000 Or
Alliance Advisors, LLC Mark McPartland +1 (910) 221 1827
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