RIYADH, 26 July 2004 — Saudi Arabian roads will soon become noticeably cleaner as an ethanol-blended diesel fuel enters the Saudi market. This follows an agreement signed in Delaware, US, this month.
Under the agreement the O2Diesel Corporation, which supplies the blend, will start delivering to Al-Obayya Corporation in the Kingdom between 11,023 and 22,046 tons of its proprietary fuel technology that will enable the blending and use of the company’s ethanol-blended diesel fuel throughout Saudi Arabia and other Middle Eastern countries. The companies will work with Saudi Aramco and other oil firms to distribute and market the fuel.
02Diesel, brand name of the product, is an ethanol-diesel blend that substantially reduces harmful emissions without compromising on power and performance. The company claims that extensive laboratory and field tests have demonstrated its effectiveness and cost benefits to users.
According to the corporation, the Saudi partner will provide logistic support to businesses that want to have a presence in the region.
Al-Obayya is a commercial entity owned by Prince Turki ibn Abdullah.
“We view this agreement as an opportunity to demonstrate the effectiveness of our cleaner-burning fuel technology in this new market, and consider this a positive step in our efforts to build brand recognition and world-wide acceptance for the ethanol based fuel,” Alan Rae, president and CEO, said in his message.
He added: “Saudi Arabia is a large consumer of diesel fuel and we are very excited at the prospect of it becoming a strong market for us. We are working closely with Al-Obayya Corporation to begin delivering the products by the fourth quarter of this year. We view this agreement as an opportunity to demonstrate the effectiveness of our cleaner-burning fuel technology in this new market, and consider this a positive step in our efforts to build brand recognition and worldwide acceptance.”
The CEO described his company as a pioneer in the commercial development of a revolutionary cleaner-burning diesel fuel alternative for centrally-fueled fleets and off-road equipment of all kinds.
Noting that the thrust of the Kingdom’s regulations is toward environmental preservation, Tarek Obaid of Al-Obayya Corporation said: “This agreement is a critical first step in recognizing the market opportunity and importance for the region of the new fuel’s environmental friendliness.”
