O2Diesel Gains Additional DOE, DoD Funding for FY05
NEWARK, DE 12/20/2004; O2Diesel Corporation announced today that the company has received an additional $1.7 million in federal appropriations to continue the testing and demonstration of its cleaner-burning O2Diesel™ in a variety of civilian and military applications, thanks to the support and hard work of U.S. Senator Harry Reid (D-NV). These new appropriations include $1.2 million in funding from the U.S. Department of Defense (DoD) and $500,000 from the U.S. Department of Energy (DOE) for the fiscal year that began on October 1, 2004.
President George W. Bush last week signed into law the $388 billion appropriations bill for the fiscal year that began October 1, 2004 for all U.S. government functions other than defense and homeland security. Congress had passed the legislation earlier, on November 20, 2004.
The additional funding will enable O2Diesel™, an ethanol-diesel blended fuel, to be further tested in large above-ground mining operations, a mainstay of the Nevada economy, and in non-tactical diesel-powered equipment operated by the U.S. Air Force at Nellis Air Force Base in Las Vegas and the Nevada Air National Guard in Reno. The mining industry in the US consumes one billion gallons of diesel fuel per year, and the U.S. military is the largest single user of diesel fuel in the United States. Extensive in-use and emissions tests are necessary to prove the benefits of using O2Diesel™ in this type of equipment.
A major goal of the upcoming round of testing is to obtain a specification for O2Diesel™, through the Defense Energy Support Center (DESC), which requires that each fuel it uses have a recognized, uniform specification ("Mil Spec") that guarantees routine operational standards of performance.
Based upon previous support from Sen. Reid, O2Diesel™, in July 2004, was recognized by the Nevada Division of Environmental Regulation as an "alternative fuel" because of its air quality benefits. In 2005, using DOE appropriations funding, the company expects to complete an exhaustive emissions testing program that will enable O2Diesel™ to be verified by the California Air Resources Board as a "diesel emission control strategy" (DECS) which will provide urban-based fleets with a more cost-effective option to the far more costly fuels and/or new equipment choices that are now available.
"Senator Reid is a strong supporter of technologies like O2Diesel™ that are sustainable, domestically-produced, and are readily applicable to the needs of areas like Las Vegas, which are growing rapidly and facing serious air quality problems," said Alan Rae, President and CEO of O2Diesel. "We are very grateful for the senator's hard work on behalf of the environment and the crucial help he has provided to O2Diesel as we continue to grow and move into the large market for cleaner-burning fuels in the United States."
More About O2Diesel: The Company and Its Fuel Technology
O2Diesel Corporation 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™ 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™ -- 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.
