Evolution Fuels Executes Letter of Intent for First Fuel Station
DALLAS, Oct. 13, 2009 (GLOBE NEWSWIRE) -- Evolution Fuels, Inc. (Pink Sheets:EVFL) (the "Company") today announced that it has executed a letter of intent to enter into a lease agreement for the Company's first fuel station under the brand, "Evolution Fuels". The station will be located in the heart of the Dallas metropolis, near the upscale Park Cities neighborhood, the "Uptown" area, and the Turtle Creek neighborhood. It will serve as the first "marquee" location for the Company's planned rollout of its branded stations.
Per the Company's business plan, the station will offer renewable fuel blends at the pump. The fuel dispensers, to be provided by Dresser Wayne, are uniquely designed to blend petroleum fuels with renewable fuels from the underground storage tanks within the dispenser as the fuel is delivered into the vehicle. The planned product offering includes E10 (10% ethanol blended with 90% petroleum gasoline), E20, E30, and E85, as well as B20 (20% biodiesel blended with 80% petroleum diesel). Although the octane content actually increases going from E10 to E30, the Company foresees the pricing to be $0.05 to $0.10 per gallon lower for the E20 product compared to E10, and likewise the same discount for the E30 product compared to E20.
The Company plans to uniquely image the station and offer specialty foods, beverages, and other products in order to help create a recognizable brand as it rolls out more stations according to its business plan.
The E20 to E85 ethanol blends are intended for use in flex-fuel vehicles, although recent studies have shown that many legacy vehicles on the road today may use E20 blends without incurring damage to the engines or fuel systems. Research and testing has been conducted by groups in collaboration with the U.S. Department of Energy (DOE) that show blends of up to 20% ethanol can be used in most legacy automobiles. Specifically, in the summer of 2007 the 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: feerc.ornl.gov
In December 2007 the American Coalition for Ethanol reported that research findings "show that mid-range ethanol blends -- fuel mixtures with more ethanol than E10 but less than E85 -- can in some cases provide better fuel economy than regular unleaded gasoline, even in standard, non-flex-fuel vehicles." The report may be found here: ethanol.org
The Company expects to sign the definitive lease agreement pursuant to the non-binding letter of intent within the next 30 to 60 days. |
