Hawks Industries Announces Revolutionary Advancement for Production of Clean Diesel Fuel

Two-step process simplifies production of synthetic fuels.

Published: 15-Nov-2000

NEW YORK & DENVER--(BUSINESS WIRE)--Nov. 15, 2000--Hawks Industries (NASDAQ: HAWK) subsidiary, Blue Star Sustainable Technologies has conceived of and validated a two-step process for the production of synthetic diesel fuel wholly derived from domestic energy resources.

Whereas competitive processes for the production of synthetic diesel incorporate natural gas reforming, Fischer-Tropsch synthesis, and subsequent product upgrading by hydrocracking, the Blue Star Technology Department Team has invented an integrated approach to synthesis gas condensation which directly provides a unique composition, clean burning, high cetane, low pour point compression ignition fuel.

Elimination of the product upgrading step in synthetic diesel fuel production precludes the conventional need for additional hydrogen, and is projected to result in wholesale cost savings of as much as $0.15/gallon of synthetic fuel or $6.00/bbl. Composition and production of the new fuel, termed Blue Star S-2, is currently the subject of multiple patent applications to the USPTO and registration with the EPA. Preliminary analyses have indicated a cetane number of >60, pour point <0(degree)C, suitable viscosity and lubricity, no detectable sulfur or aromatics, all in the complete absence of any additives or product upgrading subsequent to synthesis gas condensation. Production of the Blue Star diesel is currently under scale-up at the Blue Star Global Technology Headquarters site in the greater-Denver area of Colorado. Initial shipments to end users are anticipated for the first quarter of 2001.

The first integrated hardware built is a test fixture useful to demonstrate the viability of design, but also to test various configurations and product options. The plan is to scale-up to a prototype unit sized for semi-trailer, producing @ 10bbl/day. This experiment will have some features of the test fixture, but will include considerable improvements.

The Blue Star appliance will manufacture clean fuels useful for today's internal combustion engines or fuel cell engines; a growing industry. United Technologies, one of the leading innovators in fuel cell technology, predicts a $4 billion market in fuel cells by 2010. Other companies including Ford, Honeywell, Texaco and General Electric have invested hundreds of millions of dollars in the past several years to advance fuel cell technology.

Blue Star Sustainable Technologies, Corp., located in Arvada, CO, is chartered to develop significant new energy technologies for the global community. Today, Blue Star is seeking highly efficient natural gas utilization, with the intent of lower gas utilization and decreasing energy costs and is actively working with governments and other partners to identify gas resources for long-term technology application.

Statements about future expectations in this press release other than historical facts are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, and, as that item is defined in the Public Securities Litigation Act of 1955. Such forward-looking statement involve risks and uncertainties and are subject to change at any time. Actual results could differ materially from expected results.

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