DALLAS, June 5, 2009 (GLOBE NEWSWIRE) -- Evolution Fuels, Inc. (Pink Sheets:EBOF) (the "Company"), a renewable fuels integrator, today announced its strategy for promoting the use of ethanol blends in transportation fuels in excess of 10 percent ethanol to gasoline (E10).
Evolution Fuels is in discussion with the Environmental Protection Agency ("EPA") regarding a waiver to provide increased blends of ethanol of up to 30% ("E30") on a retail basis, and plans to file an application for this waiver in the near future. The Company plans to utilize the increased fuel blends in a local fleet of vehicles as a means to demonstrate the viability of higher blends of ethanol as a fuel alternative. In conjunction with the waiver, the Company would provide the EPA with the service records of the fleet vehicles.
The Company is currently in negotiations to acquire a minority interest in a Dallas, TX town car service that will utilize the increased ethanol blends. The Company is in the process of locating a Dallas-based fuel station that it might lease or acquire in order to provide the ethanol fuel blends for the fleet of town cars, assuming it can reach satisfactory terms for such lease or acquisition. To the extent the waiver is granted, the Company would offer the increased ethanol blends for sale to the public, and would then use this model as its platform for acquiring/leasing other similar fuel stations.
The Company plans to establish renewable fueling stations to demonstrate that blends of biodiesel and ethanol such as E15 to E30 (15% to 30% ethanol) may be used in legacy automobiles. One of its priorities will be to help push for federal and state legislation that will provide more incentives to facilitate the build-out of fuel station infrastructure for the purpose of increasing the availability of renewable fuels.
The Company believes that a U.S. policy/regulatory change is in order in which the aforementioned would be supported. Such a change could cause more ethanol to be produced and consumed domestically, resulting in the reduction of billions of gallons of oil imported from foreign countries that would in turn create savings of billions of dollars, notwithstanding the environmental benefits.
The Renewable Fuel Standard (RFS), passed by Congress in December 2007, increased the minimum quantity of renewable fuel required for blending into gasoline from 9 billion gallons in 2008 to 36 billion gallons by 2022.
The American Coalition for Ethanol, in reference to the Biomass Research and Development Board's National Biofuels Action Plan published in October of 2008, says, "Mid-range ethanol blends are a critical pathway to reducing [the nation's] dependence on gasoline."
Research and testing has been conducted by groups in collaboration with the DOE that show blends of up to 20% ethanol can be used in most legacy automobiles. Specifically, in the summer 2007, the U.S. Department of Energy (DOE) initiated a test program to evaluate the potential impacts of intermediate ethanol blends on legacy vehicles and other engines. Results of those tests can be found in the National Renewable Energy Laboratory's report (Effects of Intermediate Ethanol Blends on Legacy Vehicles and Small Non-Road Engines) published in February 2009 (http://feerc.ornl.gov/publications/Int_blends_Rpt1_Updated.pdf). The American Coalition for Ethanol refers to this report by saying "...a report from the DOE's National Laboratories on the successful use of mid-range ethanol blends in vehicles and small engines."
The Company believes that a 20% to 30% blend of ethanol is something that this country can achieve and will cause a meaningful decline in the country's reliance on foreign oil.
About Evolution Fuels, Inc.
The Company endeavors to develop retail renewable fuel stations and truck stops modeled after the Willie's Place Truck Stop in Carl's Corner, TX, and supplying biodiesel to these retail locations from its biodiesel production facility located in Durant, Oklahoma. The Company's Web site is www.evolution-fuels.com.
Forward-Looking Statements Disclosure
This press release may contain "forward-looking statements" within the meaning of the federal securities laws. In this context, forward-looking statements may address the Company's expected future business and financial performance, and often contain words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," "will," and other terms with similar meaning. These forward-looking statements by their nature address matters that are, to different degrees, uncertain. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can provide no assurances that these assumptions will prove to be correct. In connection with the "safe harbor" provisions of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, important factors that, among others, could cause or result in actual results and experience to differ materially from the Company's anticipated results, projections, or other expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements, risks, and uncertainties, and by reference to the underlying assumptions.