April 2006

Technology rewards consumers of clean fuels at the pump

New York, NY— Veridium Corporation announced that its industrial design division has filed for patent protection on an innovative new way to distribute renewable fuels that is designed to incentivise use of more renewable fuels by gas station owners and consumers.

The United States government has made economic incentives available through the use of tax credits to producers and blenders of renewable fuels. These tax incentives have contributed in vital and important ways to the increased production and use of clean fuels. Veridium’s new technology is designed to enable downstream distributors, gas station owners and consumers to participate in the economic benefit of the tax credits.

David Winsness, the chief executive officer of Veridium’s industrial design division, said that “Our design objective for the new pump was to help advance the goals of the tax credit while helping to increase the use of clean fuels by more consumers more quickly.”

The applicable tax credit is $1.00 per gallon for every gallon of biodiesel that is blended with petroleum-based diesel, and it is available specifically to the taxpayer that actually blends the two fuels. These companies typically blend the two fuels at 2%, 5% and 20% concentrations, which correspond to the B2, B5 and B20 blends, and the tax credits have historically helped these companies to offset the cost of the related infrastructure.

Veridium believes that the tax credits can be used in similar ways to help drive infrastructure into gas stations with a view towards increasing the number of stations at which consumers can purchase clean fuels. The new fuel pump is designed to allow the consumer to select their desired biodiesel blend (from 0% to 99%). This enables gas station owners to qualify for tax credits that are proportionate to the blend and to pass some of the economic benefit associated with that blend to consumers in the form of favorable pricing.

Veridium plans to exclusively license the technology to its joint venture partner, Mean Green BioFuels Corporation, who will then toll manufacture and sell private labelled fuel pumps to gas station owners and large quantity consumers of diesel fuel initially in regions that are proximate to biodiesel production facilities and terminals.

 


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