SOURCE: O2Diesel Corporation

October 03, 2007 08:30 ET

O2Diesel™ Doubles Use at Port of Long Beach

NEWARK, DE--(Marketwire - October 3, 2007) -


--  Use of O2Diesel™ helps port tenants meet commitment to reduce
    emissions
--  CARB-verified fuel can be part of a clean air strategy
--  Port of Long Beach encourages the use of cleaner fuels like
    O2Diesel™
    

O2Diesel Corporation (AMEX: OTD) today announced that in its continuing efforts to support the Long Beach Port Authority's efforts to improve air quality in and around the Port of Long Beach, a third tenant, one of the Port's larger operators, has become the latest fleet operator to switch to O2Diesel™, a unique, cleaner burning ethanol-diesel fuel blend developed by O2Diesel Corporation.

The new customer, a major full-service container terminal operator and stevedore, has converted over 120 pieces of diesel powered equipment to O2Diesel™.

"The decision by the operators at the Port of Long Beach to use O2Diesel™ to help reduce emissions is very important," said Alan Rae, CEO of O2Diesel Corporation. "We have worked hard at the Port of Long Beach to demonstrate that O2Diesel™ is a viable commercial solution for reducing the emissions normally associated with the use of regular diesel. By adopting O2Diesel™ as part of their environmental strategy, operators are demonstrating a forward-thinking approach to finding viable, environmentally responsible solutions to local air quality concerns."

Rae noted O2Diesel Corporation began talking with port facilities in 2003 and one of the large operators at the Port of Long Beach was the first adopter. Additionally the Port Authority itself has used O2Diesel™ in its maintenance fleet for more than two years. In addition other Port tenants are testing the fuel, which is a combination of diesel, renewable ethanol and a proprietary, renewable additive.

"In fact, O2Diesel™ has been used in the Port for nearly three years and has seen more than 1 million hours of use on several hundred pieces of equipment and vehicles -- from forklifts to trucks to cranes," Rae said. "The Port of Long Beach should be commended for being aggressive in its efforts to reduce harmful emissions like particulate matter and smog-forming oxides of nitrogen. We are thrilled to be part of the solution."

The ability of O2Diesel™ to substantially reduce smoke, particulate matter and oxides of nitrogen (Nox) emissions has been verified by the California Air Resource Board (CARB). It has been the CARB verification and the Port's own experience with O2Diesel™ that led the Port to send a letter to all its tenants encouraging the use of the fuel as part of a strategy to reduce emissions from Port operations.

"The Port supports voluntary efforts by our tenants and customers to take proactive steps to reduce operational emissions through technologies like O2Diesel™, which has been in use by the Port's maintenance fleet for over 18 months," said the letter, signed by Dr. Robert Kanter, the Port's Managing Director of Environmental Affairs & Planning.

The letter added that O2Diesel™ has been found to be "safe, functional and user friendly," and that "the Port of Long Beach encourages the use of O2Diesel™ in the existing centrally-fueled diesel fleets operating at the Port."

"O2Diesel™ has the added benefit of working with filters and traps installed in an engine's exhaust system to further reduce emissions. O2Diesel™ is a perfect tool because it is simple to use and can be part of an overall clean air strategy, allowing companies to add components over time that further reduce emissions," Rae said.

Chris Willig, sales manager for General Petroleum, which supplies fuel for Port tenants, said his company was pleased to be part of the valuable project. "We want to supply what our customers want," he said. "In this case, we are excited to supply a cleaner burning fuel to three of the Port's major tenants. The product is simple to use and a great option for reducing emissions for those at the Port or elsewhere."

About O2Diesel

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™ 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.

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 Information

  • O2Diesel Contact:
    O2Diesel Corporation
    Alan Rae
    President
    +1 (302) 266 6000

    Investors Contact:
    Alliance Advisors LLC
    Mark McPartland
    +1(910)221-1827