BAT International Signs Exclusive Distribution Agreement to Market Pollution
Reducing Diesel Fuel Additive in the US and Eight Other Countries
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Story Filed: Thursday, November 02, 2000 9:30 AM EST
CHULA VISTA, Calif., Nov 2, 2000 (BUSINESS WIRE) -- BAT International
(OTC:BAAT) ( www.baat.com) signed an agreement with a chemical company
overseas to market a diesel fuel additive that dramatically reduces major
diesel fuel pollutants even at very low concentration levels. The additive
has no harmful effects on diesel engine life or performance and can be added
to diesel fuel for a very low cost (pennies per gallon). BAT plans to
initiate a major marketing campaign for the product starting in early 2001
in nine countries where it has obtained exclusive rights including the US,
Mexico, France, Portugal, Brazil, Argentina, Chile, Hungary and India.
BAT and its affiliated companies have undergone extensive testing of the
fuel additive in its own labs and at independent labs to verify emission
benefits. Independent lab testing was conducted by Emission Testing Services
(ETS) in Costa Mesa, California, a lab using U.S. Environmental Protection
Agency approved emissions testing equipment and testing protocols. ETS is
recognized by California Air Resources Board (CARB) as an independent lab
capable of conducting acceptable testing to CARB standards. ETS testing
involved the additive mixed with a 10% concentration of biodiesel. The test
results showed that both particulates (PM 10) and opacity (black smoke)
could be reduced substantially while simultaneously reducing nitrogen oxides
(NOX). These two pollutants are the major contributing causes of air
pollution from operation of diesel engines. The results of the tests were as
follows:
Nitrogen Oxide (NOX) reduction: 7% Particulate Matter (PM 10) reduction: 30%
Opacity (smoke) reduction: 80%
The ability to reduce both NOX and particulates/opacity is a major
breakthrough for an additive because it helps address a major engineering
challenge faced by diesel engine manufacturers and air pollution regulators.
In an SAE Conference in 1999, Dr. Magdi Khair, Staff Engineer at Southwest
Research Institute noted that "it is difficult for diesel engines to meet
projected nitrogen oxide (NOX) and particulate matter (PM 10). Traditionally
measures aimed at reducing one of these two exhaust species has led to
increasing the other. This physical characteristic, which is known as the
NOX / PM tradeoff, remains the subject of an intense research effort". The
results above were particularly encouraging because the same testing showed
that biodiesel alone actually increased NOX emissions by about 2-3%. Thus
overall NOX reductions were closer to 9-10%.
Control of NOX and particulate matter from diesel engines is one of the
biggest air pollution challenges faced by air quality regulators worldwide.
Improvements to the emissions of gasoline engines has led to much lower
pollution levels from automobiles in many parts of the world. At the same
time, there has been an increasing contribution of pollution from trucks,
buses, marine vessels and other diesel engines because of the large number
of miles traveled by each vehicle or vessel and limited pollution control
measures on these engines. Recent evidence linking cancer to particulate
matter has led to propose regulations in the US, California and around the
world.
A fuel-based approach to achieving particulate matter and NOX reductions has
significant advantages over new engine emission standards because it
addresses pollution from both on-road vehicles and new engines. Since diesel
engines have a very long life (500,000 to 1 million miles), engine based
approaches take a long time to achieve emission reductions. Fuel additives
provide immediate emission benefits as soon as they are added to diesel fuel
in a country or state. Various regulations are now under consideration to
lower sulfur levels in diesel fuel to 15 parts per million to allow new
catalysts to work properly. This presents an opportunity to propose more
comprehensive approaches that include addition of additives to the fuel to
quickly and effectively reduce NOX and PM 10.
BAT plans to introduce the additive to each of the countries listed above
through a program of cooperative testing with private sector partners,
government agencies and government and private transportation fleets. This
will include both laboratory and field testing on buses, trucks, stationary
sources and marine vessels. BAT has developed extensive contacts in the US
regulatory community as a result of prior development of electric vehicles,
super-efficient vehicles and engines, electric bikes and scooters and other
technologies. BAT has also developed government and private industry
contacts in the target countries through its participation in military
"industrial offset programs". The military company's Industrial Offset
Programs act as "matchmakers" to identify private industry partners and
government regulators interested in technology lab testing, field testing,
joint venture formation and market introduction in the target countries.
Diesel consumption is very large in most countries around the world.
Addition of additives to reduce pollution represents significant revenue
potential from additive sales. In California alone, 12 million gallons of
diesel fuel is consumed daily. Annual global consumption of petroleum is now
over 72 million barrels per day and a large portion of this total
consumption is in diesel engines used in mobile and stationary applications.
The additive can be used to reduce pollution from both mobile and stationary
sources (oil heating systems, oil power plants, etc.). There are also
efforts to adopt marine emission standards, including a convention that has
passed or is under consideration for ratification by major shipping
countries in the International Maritime Organization (IMO) that will require
substantial reductions of PM 10 and NOX in new or retrofitted ships. In
Scandinavia, where IMO conventions are already approved, there are even
variable port tax fees based on emission standards achieved by vessels that
provide a strong incentive to utilize fuel additives. BAT has identified
numerous strategies to pursue product introduction and distribution programs
in marine, stationary, heating, power generation, truck, bus and other
markets. These efforts, which have been underway at a planning level over
the last year, will intensify in early 2001.
BAT International is organized as a holding company with major ownership
positions in a set of subsidiary or affiliated companies now commercializing
advanced automotive technology products developed by BAT over the last eight
years. This includes electric bicycles and scooters, super-efficient or high
power engines, advanced batteries and lubricant additives, (for information,
see www.baat.com). Information about trading prices and volume can be
obtained at several Internet sites including www.bloomberg.com under the
call symbol "baat".
Except for historical information contained herein, the matters discussed in
this news release are forward-looking statements that involve risks and
uncertainties. The forward-looking statements are made pursuant to the safe
harbor provisions of the private Securities Litigation Reform Act of 1995.
In addition to the factors set forth above, other important factors that
could cause actual results to differ materially include, but are not limited
to, technical risks association with new technology development, government
regulatory approvals and continued working capital. BAT will keep its
shareholders timely informed of current developments. Please refer to our
Web site and other sources for more detailed Company information, (Investor
Relations, (619) 409-8977).
CONTACT: BAT International
Joe LaStella, 619/409-8977
URL:
http://www.businesswire.com
Steve Spence
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