O2Diesel's
Asian Distributor Energenics Secures Agreement to Transition 2,500 Buses
Using O2Diesel's Technology NEWARK, DE--(MARKET WIRE)--Jan 31, 2007 -- O2Diesel Corporation (AMEX:OTD - News) today announced that the Karnataka Road Transport Corporation (KSRTC) of the State of Karnataka in India has recently announced that it is switching the first 2,500 buses of its 5,162 bus fleet to O2Diesel™, an ethanol blended diesel fuel comprised of 7.7% of renewable ethanol and 0.5% of the O2Diesel's proprietary fuel additive technology based on a successful trial of the fuel. The cleaner burning fuel is marketed in India by the company's exclusive distributor for the region, Energenics, as "Enerdiesel powered by O2Diesel." It is planned that the remaining 2,662 buses of the fleet will be added by the fourth quarter of 2007 bringing the total to 5,162. This will represent the largest ethanol diesel fleet in the world, using approximately 120,000,000 liters of O2Diesel per annum. "This news is significant for the company and is the result of a great deal of hard work and commitment from Energenics," said Alan Rae, CEO of O2Diesel Corporation. "Energenics has already committed substantial resources and has worked with all parties involved, including O2Diesel, to develop the ideal implementation model that will support this level of expansion for O2Diesel in the region. The market is just developing, but I am confident that Energenics' recent orders for 83,000 liters of our proprietary additive is only the beginning of a successful partnership in this region." Ronen Hazarika, Managing Director of Energenics, commented, "I'm elated that we're now in the process of converting successful trials into fully commercial fleet customers. It has been possible to do this quickly due to the excellent performance of the fuel in the field and the substantial technical and commercial verification that exists. Also, the professionalism of the management & technical staff of KSRTC has been world class. We are working hard to use the success of this experience to establish similar fleet customers in India and other Asia Pacific territories." "We are in discussion with the other state fleets in Karnataka and it is our goal to convert as much of the state used 400,000,000 litres of diesel to 'Enerdiesel powered by O2Diesel' as soon as practically possible during 2007. We hope to have converted some of the depots belonging to the other 3 state transport corporations in Karnataka by the 2nd quarter of 2007. In addition, we are already in advanced negotiations with several other States in India who have shown substantial interest in a similar conversion based on the success of our program in Bangalore." All three components of the fuel, the ethanol, O2Diesel additive and local diesel fuel, are blended at the dispensing pump directly into the bus. This procedure was first used by O2Diesel in Brazil in 2004 but has been completely re-engineered by Energenics and its partners into a cost effective, fully automated, state-of-the-art computerized injection blending unit that ensures an extremely high level of quality control and real time remote monitoring. The blending unit enables the existing pump to deliver both Enerdiesel and regular diesel, if required. Delivering the solution in this manner ensures protection from contaminants in the diesel storage tank and also enables complete independence from fuel blenders and oil companies. Alan Rae commented further, "This method of delivery removes a huge obstacle that has faced the introduction of all new bio fuels; How do you achieve independence from the high cost of using existing fuel delivery infrastructure? We are already working with Energenics to adapt the blending unit for use in all our markets." About O2Diesel: The Company and Its Fuel Technology O2Diesel Corporation (AMEX:OTD - News), 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™ 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™ and 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. More About
Energenics: Energenics identifies, invests, sources, validates and commercializes energy technology. Energenics has a strong customer base comprising transportation groups, mining companies, and port and marine operators throughout the Asia Pacific region. Our goal is to improve the use of conventional energy sources, reduce emissions and, ultimately, phase in the use of alternative energy solutions to benefit the environment and their customers. Energenics' strategy is to become the Asia Pacific's first truly integrated supplier of innovative technologies to help meet targets in energy reduction and climate change in mobile and stationary sources. Contact: Tel: +65
6341 9650
O2Diesel Selects Energenics Pte Ltd as Exclusive Distributor for Asia Pacific & South Africa for Its Cleaner Burning Ethanol Diesel Blend NEWARK, DE, Oct 19, 2006 (MARKET WIRE via COMTEX News Network) -- O2Diesel Corporation (AMEX: OTD) today announced that it has signed a five-year supply agreement for Asia Pacific & South Africa with Singapore-based Energenics Pte Ltd, a wholly owned subsidiary of Energenics Holdings Pte Ltd. Energenics will brand the pioneering cleaner burning fuel as "EnerDiesel -- Powered by O2Diesel," in Asia Pacific & South Africa. The transaction consists of an investment by Energenics of $1,000,000 to acquire a holding of O2Diesel Corporation's common stock and a five-year agreement for the supply of O2Diesel's proprietary fuel technology which replaces the company's previously announced supply and distribution agreement with Blue Diamond Australia Pty Ltd. Ronen Hazarika, Managing Director of Energenics commented, "We've been working closely with O2Diesel since the start of 2006 on evaluating the potential of O2Diesel's ethanol-diesel blend in our target markets. We have also spent considerable resources on independently verifying the technical aspects of this fuel through accredited engine test facilities, analytical laboratories and in field trials with our customers. The signing of this significant contract is a result of a very successful commercial and technical validation of the product." "The results of our cooperation with Energenics has been excellent as Energenics has demonstrated substantial technical competence and commitment to the program," said Alan Rae, Chief Executive Officer of O2Diesel Corporation. "We are enthusiastic about the potential for these new markets where the need to reduce emissions and reduce imported oil dependency is an important political and economic driver." Energenics is committing significant further resources in establishing a dedicated technical team to support the commercial team's roll out of O2Diesel in the region, initially focusing on centrally refueled transport & mining applications, before expanding into stationary and marine applications. To support the planned expansion of the trial fleets to commercial customers, Energenics has placed orders with O2Diesel for 66,000 litres of O2Diesel additive with further orders anticipated for 2006. These orders are in addition to the 16,600 liters purchased by Energenics earlier this year. The additive will be manufactured at a local site in Asia Pacific by O2Diesel's manufacturing partner Cognis Gmbh, and then will undergo a final blending step in Singapore by Energenics. Energenics also has been successful in enabling simple customer conversions to "EnerDiesel -- Powered by O2" by providing a full turnkey blending operation at customers' refueling depots. Specialized on-site ethanol storage tanks are installed along with Energenics' state-of-the-art computerized blending equipment, which will automatically blend diesel, ethanol and the patented O2Diesel additive into a clear stable solution prior to being dispensed into the tank of the vehicle. Delivering the solution in this manner ensures protection from contaminants in the diesel storage tank and also enables complete independence from the fuel blenders and oil companies. The system also enables future additive or ethanol supplies to be made on an automated just in time basis via its live telemetry reporting function. The parties entered into a Common Stock and Warrant Purchase Agreement for 1,371,742 shares of O2Diesel's common stock at a purchase price of $0.729 per share in a private placement, for total proceeds of $1,000,000. As part of the sale, O2Diesel will also issue warrants to purchase 685,871 shares of common stock at an exercise price of $0.972 per share during the period of six months to sixty-six months of issuance. The warrants expire sixty-six months after the date of issuance. Energenics' obligation to purchase the shares is subject to O2Diesel satisfying certain additional conditions. O2Diesel anticipates that this financing will close within 30 days. As part of the transaction, upon certain purchases of O2Diesel(TM), O2Diesel has agreed to sell up to an additional $250,000 of its common stock to Energenics at a purchase price of $0.729 per share for 342,936 shares and to issue warrants to purchase up to 685,871 shares of common stock at an exercise price of $1.1664 per share. These warrants expire sixty-six months after the date of issuance. The common stock and the warrants will be issued to the accredited investor in a transaction that will be exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended (the "Securities Act"), and/or Regulation D promulgated under the Securities Act. 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. More About Energenics: Energenics is a supplier of alternative energy solutions and technologies, providing customers access to switched or phased renewable fuels programmes that enable energy and emission reductions at zero or minimal capital cost compared to existing technologies. Energenics identifies, invests, sources, validates and commercialises energy technology. Energenics has a strong customer base comprising transportation groups, mining companies, and port and marine operators throughout the Asia Pacific region. Our goal is to improve the use of conventional energy sources, reduce emissions and ultimately, phase in the use of alternative energy solutions to benefit the environment and their customers. Energenics'
strategy is to became the Asia Pacific's first truly integrated supplier
of innovative technologies to help meet targets in energy reduction and
climate change in mobile and stationary sources. |