DALLAS, Texas, May 1, 2009 (GLOBE NEWSWIRE) -- Earth Biofuels, Inc. (Pink Sheets:EBOF) (the "Company") today announced that it has changed its name to "Evolution Fuels, Inc." in order to better reflect the Company's strategy of developing demand and providing pump capacity for renewable transportation fuels at the retail level.
Management stated that the Company has developed its business focus as follows:
Our Plan
Evolution Fuels will focus its business operations on establishing retail fueling locations that carry blends of ethanol and biodiesel. The Company plans to build on the model of the Willie's Place Truck Stop at Carl's Corner, TX -- to provide "destination" truck stops for motorists and supply them with blends of biofuels. The Company's biodiesel production facility in Durant, OK, will undergo modifications and, once complete, will be able to supply the necessary biodiesel to the Company's truck stops. Plans call for the establishment of urban fuel stations that will carry mid-range blends of ethanol such as E20 (20 percent ethanol blended with 80 percent gasoline), as well as E85 and blends of biodiesel.
New Energy Policy
The new U.S. energy policy that is evolving within the Obama Administration emphasizes a shift from vehicle fuels derived from imported oil to fuels derived from new, renewable and domestic sources of fuel. In order to achieve such a transformation, transportation fuel consumers MUST have access to blends of renewable fuels at the pump.
How We Got Here
There can be little question that soaring oil and gasoline prices which peaked in July last year at nearly $150 per barrel and $5 per gallon respectively, contributed to the current economic recession. With high prices come decreased demand and economic slowdown. Concurrent with the rise in oil and gasoline prices, the renewable energy industry faced many setbacks and disappointments. Even the most optimistic expert and advocate of the industry will admit that the task of trying to create a new industry that competes with an established 900 pound gorilla that has billions of dollars invested in infrastructure and inventory is daunting. The oil industry, in its efforts to return maximum shareholder value, has sold its product at the highest possible prices and has spent increasingly more on producing from diminishing reserves of oil to replace its inventories.
What Needs to Happen
Our leaders in government recognize that cycles of increasing volatility in the price of imported oil will continue to be a problem, even one of national security implications, as the global economy recovers. Today, much is being said about our need to increase our production capacity of renewable fuels, especially ethanol. According to the Renewable Fuels Association, there is currently 12.5 billion gallons of annual ethanol production capacity, of which 2 billion is idle. The Renewable Fuel Standard (RFS), passed by Congress in December 2007, increased the minimum quantity of renewable fuel required to be blended into gasoline from 9 billion gallons in 2008 to 36 billion gallons by 2022. Where is it going to go? The industry will need a plan to incentivize the distribution and retailing of the product. A great deal of work has been done in this regard and overall achievement is not as distant as some might have you believe. Tests and research has been conducted by groups in collaboration with the DOE that show blends of up to 20% ethanol can be used in most legacy automobiles.
Our Strategy
Part of our strategy involves making ethanol fuel blends up to E30 available at retail pumps. One of our priorities will be to help push for federal and state legislation that will provide more incentives to facilitate the build out of fuel station infrastructure for the purpose of increasing availability of renewable fuels.
The Company is in the process of putting together a team of advisory experts to assist in our efforts. Over the next several weeks Evolution Fuels will make announcements to update the public on its progress.
We believe solutions to many of the obstacles are at hand, and we believe that the Company has a significant opportunity to become a leader in providing blends of renewable fuels at the retail level. We plan to establish renewable fueling stations to demonstrate that blends of biodiesel and ethanol such as E20 may be used sooner rather than later.
About Evolution Fuels, Inc.
The Company endeavors to develop retail renewable fuel stations and truck stops modeled after the Willie's Place Truck Stop in Carl's Corner, TX, and supplying biodiesel to these retail locations from its biodiesel production facility located in Durant, Oklahoma. The Company's Web site is currently www.evolution-fuels.com.
Forward-Looking Statements Disclosure
This press release may contain "forward-looking statements" within the meaning of the federal securities laws. In this context, forward-looking statements may address the Company's expected future business and financial performance, and often contain words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," "will," and other terms with similar meaning. These forward-looking statements by their nature address matters that are, to different degrees, uncertain. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can provide no assurances that these assumptions will prove to be correct. In connection with the "safe harbor" provisions of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, important factors that, among others, could cause or result in actual results and experience to differ materially from the Company's anticipated results, projections, or other expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements, risks, and uncertainties, and by reference to the underlying assumptions.