CleanFUEL USA Secures $12.9 Million from U.S. Department of Energy

Stimulus funds support development of Louisiana’s first liquid propane refueling corridor along Interstate10

GEORGETOWN, Texas – Sept. 9, 2009 – U.S. Department of Energy (DOE) today awarded $12.9 million in two stimulus grants to CleanFUEL USA, a leader in propane engine technology and alternative fuel infrastructure solutions. The funds will be used to establish more than 100 state-of-the-art liquid propane (Autogas) refueling stations in major U.S. cities, in addition to the IH10 Louisiana refueling corridor in coordination with CleanFUEL USA partners, including ConocoPhillips. Other supporting partners include the Texas State Technical College, the Central Texas Clean Cities Coalition, Rush Truck Centers, 16 additional area Clean Cities Coalitions and the Propane Education and Research Council. The propane network will provide retail consumers as well as municipal, state and private fleets greater access to a cost-effective and clean-burning alternative transportation fuel.

“Developing a better infrastructure for the distribution of alternative fuels is an essential part of the country’s ability to reduce greenhouse gas emissions,” said U.S. Congressman John Carter (R-TX). “CleanFUEL USA is on the frontline of providing these solutions, and I support its efforts in spearheading a national Autogas refueling network with its partners to increase the use of lower-emission transportation fuels and offset the U.S. demand for foreign oil.”

The program will roll out in two phases and focus on cities that have a presence of existing and potential Autogas fleets, Autogas fuel availability as well as available staff and resources from the Propane Education & Research Council (PERC). Most refueling sites will be strategically located along major interstate highways and interchanges at existing ConocoPhillips branded retail stations. The first station will be installed in Atlanta and other program cities include: Chicago, Houston, Denver, Sacramento, Los Angeles, Dallas, Phoenix, Indianapolis, Seattle, Orlando, San Diego, St. Louis, San Antonio, Austin and Oklahoma City, in addition to the Louisiana IH10 refueling corridor cities (Baton Rouge, Lake Charles and New Orleans). The Louisiana IH10 refueling corridor is expected to be in place by early 2010.

“Louisiana is a leading producer of propane in the U.S. – therefore, the implications of these grants holds tremendous promise for our state,” said Rick Richard, CleanFUEL USA Chairman, who is based in Lake Charles and the former CEO of Columbia Energy Group. “The Louisiana IH-10 propane refueling corridor is a strategic element of the nation’s first propane network, and it will be rewarding to see propane usage increase as part of this new distribution system. CleanFUEL USA developed the technology to make this long-term vision a reality for the propane industry, and we are anxious to put this plan into motion.”

The DOE estimates the initiative will provide the equivalent of more than 3 million gallons of petroleum annually. In addition to installing Autogas refueling stations, the project scope involves marketing campaigns to surrounding municipal, state and private fleets about Autogas vehicle options (e.g. school buses, shuttle buses, medium and light duty trucks, etc.), and economic and environmental benefits of using one of the nation’s most readily available, domestically-produced alternative fuels.

An alternative energy advocate, Michael Williams, Texas Railroad Commission Chairman has championed the use of environmentally friendly alternative fuels such as Autogas with the “Breathe Easy” initiative. These educational campaigns coupled with incentives have helped many public and private fleets statewide, especially schools, take advantage of the inherent benefits of operating an Autogas fleet.

“This is great news for TSTC and Central Texas,” said U.S. Congressman Chet Edwards (D-TX). “This program will play an important role in strengthening our nation’s economy and supporting our energy independence. These grants will give TSTC a leading role in creating new jobs locally while reducing demand on foreign oil and improving energy efficiency across the country.”

There are more than 300,000 Autogas-powered cars and trucks on the road and more than 5 million forklifts operating in the United States today. A significant number of these vehicles are in and around the targeted metropolitan areas where CleanFUEL USA plans to build out the national refueling Autogas network in collaboration with its partners.