|By Business Wire||
|June 3, 2014 07:03 AM EDT||
Fuel Performance Solutions, Inc. (FPS) (OTC: IFUE) announced today that it made an initial sale of DiesoLiFT™ into the marine market through distribution partner Brenntag. FPS’s entry into the marine market follows the publication of a report by FOBAS – Fuel Oil Bunkering Analysis and Advisory Service (https://www.fobas.com/), a division of Lloyd’s Register Marine dedicated to marine fuel analysis, that found adding DiesoLiFT™, FPS’s proprietary fuel additive, does no harm (i.e. no change in fuel specification) when added to marine fuels.
This report has prompted the interest of a number of shipping companies who have indicated they will commence dry dock engine work immediately with a derivation of the core DiesoLiFT™ technology.
“The marine market is a huge opportunity for us,” said Jonathan Burst, FPS’s CEO. “It consumes 200 million metric tons of heavy fuel oil each year. The proven fuel economy benefits of DiesoLiFT™ plus the no harm finding puts us in a position to capitalize on this market segment as well.”
Mr. Burst added, “Once again our distribution partners will lead the way into these large application markets. Brenntag, who is also the manufacturer of our products, continues to generate new customers and opportunities for FPS.”
Brenntag Group (http://www.brenntag.com/) is a global leader in the distribution and manufacture of industrial and specialty chemicals and additives and lubricants. Brenntag has a global network of more than 480 locations in 70 countries, with annual revenues of $13 billion.
New emissions standards for the shipping industry will go into effect January 1, 2015. This should increase the usage of marine gas oil (“MGO”) as ships will have to refrain from burning existing bunker fuel in designated Emission Control Areas (“ECA’s”), which are port areas along the coasts of Europe and North America.
This regulatory change gives ship-owners three options. First, they can retrofit their existing tonnage to run on liquefied natural gas (“LNG”), which at $10-20 million per ship rarely makes financial sense except for newbuilds. Second, they can pay $3-10 million to equip their ships with scrubbers. Third, they can switch to MGO while operating in ECA’s.
“For a great many ship-owners, the capital expenditure requirements put LNG and scrubbers out of reach,” said Axel Farhi, FPS’s Director of Global Business Development. “Many will, by default, opt for burning MGO. DiesoLiFT™ has proven that it makes engines run more efficiently. We can save ship-owners up to 5% on the cost of their MGO.”
In addition, FPS has successfully tested DiesoLiFT™ in bunker fuel.
Mr. Farhi concluded, “FPS is already selling DiesoLiFT™ 10 in the rail, stationary power generation and road transportation industries. The addition of potential customers in the marine industry increases our potential for growth, and we look forward to developing our standing in this market.”
About Fuel Performance Solutions, Inc.
Fuel Performance Solutions, formerly International Fuel Technology, Inc., is a company focused on providing its technology to large, industrial consumers of diesel fuel and bio-diesel fuel blends in the rail, stationary power generation and road transport industries.
Safe Harbor Statement
Some statements contained in this release may be forward-looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995 including, but not limited to, statements as to commercialization of the Company’s products and business development activities. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that may cause the Company’s actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, the Company’s ability to generate revenues and other factors as described in the Company’s literature and filings with the Securities and Exchange Commission.
Further information on DiesoLiFT™ and the PerfoLiFT™ BD-Series may be found at FPS’s website: www.internationalfuel.com.