O2Diesel gets defense contract, EPIC support

By | June 01, 2006
O2Diesel Corp., the publicly traded company known for its proprietary, ethanol-spiked diesel fuel for fleets and off-road equipment with the same name, is expanding its repertoire.

For starters, O2Diesel is under contract with the U.S. Department of Defense, which appropriated $800,000 for O2Diesel to research and develop another cleaner burning alternative to conventional diesel fuel that complies with Executive Order 13149. This order requires federal agencies with fleets of 20 or more light-, medium- or heavy-duty on-road vehicles in metropolitan areas to reduce their petroleum consumption by 20 percent.

O2Diesel's new fuel will be composed of a minimum of 20 percent renewables, such as its proprietary, patented O2DO5, a solubilizing additive. O2Diesel is having the fuel researched at Southwest Research Institute in San Antonio, Texas. Following the research, the defense department will demonstrate the fuel at one or more of its facilities.

In other company news, O2Diesel's CityHome program, an initiative designed to improve emissions from transit and school bus fleets, signed on two more sponsors recently. This initiative provides the branded O2Diesel fuel to participating fleets at no additional cost. Private and corporate sponsorships pay for any additional costs.

E3 Biofuels, a closed-loop ethanol production system in Mead, Neb., and the Ethanol Promotion and Information Council (EPIC) both recently signed up as sponsors to the CityHome program. According to Alan Rae, O2Diesel CEO, the addition of E3 Biofuels "is an important landmark for O2Diesel and CityHome." Moreover, EPIC's sponsorship and its ability to increase public awareness of ethanol is an important addition to the program.

Lastly, StarTran Transit of Lincoln, Neb., the first fleet to adopt CityHome, recently completed its first full year using O2Diesel. In that time, company reduced its petroleum consumption by approximately 8 percent.