U.S. DoD testing new alternative fuel blend at Las Vegas base

O2Diesel Corporation (AMEX: OTD) announced today the U.S. Department of Defense has begun field testing its new renewable fuel.

A demonstration fleet at Nellis Air Force Base in Las Vegas, Nevada, is now using the new fuel, O2Biodiesel, composed of 28% renewable sources—ethanol, biodiesel, and the company's proprietary biomass-derived stabilizing additive.

The new fuel is undergoing real-world challenges for military specifications. These include storage and handling, and use in extreme conditions of heat, cold, humidity, and variations in types of use, according to O2Diesel.

The company says its fuel significantly reduces emissions from centrally fueled diesel-powered equipment, including urban buses.

O2Diesel recently received $1 million in new government funding, on top of other earlier appropriations.

The Department of Defense is the largest single consumer of diesel & distillate fuels in the United States.

"The ability to rapidly deploy the fuel with limited to no change in the fueling infrastructure is a good example of how cleantech fuel technologies can easily be adopted and implemented by large fleet consumers of diesel fuel," said Alan Rae, CEO of O2Diesel.

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