Emex Corp. Registers Low-sulfur Diesel With EPA

Low-sulfur diesel fuel sythesized from natural gas using proprietary processes.

Published: 26-Feb-2001

LAKEWOOD, Co.--(BUSINESS WIRE)--Feb. 26, 2001--EMEX Corp. (Nasdaq: EMEX) has completed Environmental Protection Agency registration of its low-sulfur diesel fuel, Blue Star S-2, synthesized via proprietary processes from natural gas.

While the registration is not an EPA endorsement of the fuel, obtaining it was a necessary step for the company to sell its fuel on a test basis in U.S. markets. EMEX now hopes to demonstrate in the key market of California that its fuel can be a viable solution to the country's clean energy needs.

Many diesel consumers and oil refiners have expressed concern that proposed EPA sulfur regulations could translate into a substantial economic burden and, as one industry study predicts, a 12% shortfall in U.S. diesel supply by 2006. This is particularly true in California, where stricter standards, including zero-emission requirements for a certain percentage of cars, will be introduced earlier than nationwide rules.

"It's become abundantly clear that California specifically and the U.S. in general need new energy solutions across the spectrum," said Nick Vanderborgh, head of EMEX's Blue Star Technologies' development. "We're confident our S-2 fuel and other EMEX efforts can provide some of the answers."

A series of analytical tests performed by Titan Laboratories, Denver, Co., confirmed the exceptional quality and suitability of the Blue Star S-2 fuel for use in conventional diesel engines. Of the findings, two stand out for their potential to meet tightening environmental regulations. First, the sulfur content of the fuel did not exceed 0.003% (30 ppm), showing the Blue Star S-2 fuel is a possible answer to stricter EPA demands on diesel sulfur content, which are set to kick in 2004 and tighten to allow only 15 ppm by 2006.

Titan also found that the Blue Star S-2 fuel has a 53% higher cetane level than conventional diesel, which makes the fuel burn cleaner, markedly reducing noxious emissions targeted for elimination by the EPA.

Blue Star S-2 synthetic diesel is prepared by the Blue Star process, a technology derived using historic Fischer-Tropsch chemistry, employing proprietary advances developed by the Blue Star Technology Development team. The process uses natural gas and air as chemical inputs and is suitable for both small and large-scale plants. The product distribution can be adjusted to provide relatively large or small yields of heat, electricity, liquid or solid fuels and feedstocks.

Though its Blue Star technologies and product lines, EMEX Corp. focuses on Gas-To-Electricity, Gas-To-Liquid and Gas-To-Solid processes that utilize natural gas. The company is also working to provide fuels to be used in fuel cells. EMEX's Resources Division is developing significant precious metal projects and natural gas holdings under the North Star subsidiary. The combination of developing both technologies and a resource base is referred to by EMEX as "asset-backed technologies," and is key to the company's strategy of surmounting economic challenges faced by emerging technologies.

For more information contact: Matt Gallagher at Weber Shandwick Worldwide, 646 658 8155.

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 statements involve risks and uncertainties and are subject to change at any time. Actual results could differ materially from expected results.

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