O2Diesel is marketed in India by the company&rsqo;s exclusive distributor for the region, Energenics.

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 liters 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.

—Ronen Hazarika, Managing Director of Energenics

All three components of the fuel, the ethanol, O2Diesel additive and local diesel fuel, are blended at the dispensing pump. 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, computerized injection blending unit with realtime remote monitoring.

The blending unit (along with a separate above-ground ethanol storage tank) 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.

This method of delivery removes a huge obstacle that has faced the introduction of all new biofuels: 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.

—Alan Rae, CEO O2Diesel