US Energy Initiatives Corporation ("US Energy" or "the Company") (OTCBB:USEI) today announced the Company has granted an exclusive license through its sub licensee GreenGas (Asia) Ltd ("GreenGas") to PS Natural Gas Company Ltd Thailand ("PSGas") for the bus industry within the licensed territory. As a part of the license, US Energy, through GreenGas, will convert a minimum of 10,000 buses from diesel to the Company's patent dual-fuel diesel to natural gas systems over a five year period. Total contracted systems sales for US Energy for the 10,000 units sold over 5 years is in excess of $54,000,000.
PSGas was formed in 2006 specifically to address the conversion of buses from diesel to operate on natural gas. It has partnered with PTT Public Company Limited, the distributor of compressed natural gas in Thailand; Kasinkorn Bank, a leading Thai Bank that will provide secure financial packages to the bus fleet owners, and; Thai Transport Co Ltd, a leading bus operator in Thailand. There are over 90,000 buses in Thailand. The license grants exclusive rights to PSGas to the bus industry throughout the licensed territory. By rule in Thailand, the price of natural gas must always be sold for no more than 50% of the cost of diesel. The use of natural gas in place of diesel eliminates a number of harmful pollutants most importantly particulates. The conversion of 10,000 buses represents a dramatic savings in the cost of fuel and significantly contributes to the many steps being taken to reduce pollution in Thailand.
"Together with GreenGas NGV, we are pleased to have been selected by PSGas to deploy our patent, dual-fuel technology in support of their mission in Thailand" said US Energy CEO Mark Clancy. "Further, the licensing of PSGas together with the General Motors Thailand (GMTH) C190 Colorado pick-up program due to launch during December 2006, represents a major milestone for US Energy. Our marketing strategy is to deliver our patent dual-fuel technology to the consumer both through the OEM as well as the aftermarket. The Company is now positioned through GMTH with the world's largest automotive OEM and through PS Gas our technology is now scheduled for installation in at least 10,000 buses over a five year period. We look forward to exceeding the challenges these opportunities present" concluded Mr. Clancy.
About US Energy Initiatives Corporation and GreenGas NGV (Asia) Limited: GreenGas is the exclusive distributor for US Energy in Thailand. US Energy established in 1996, is an ISO-9001 certified manufacturer commercializing its patented dual-fuel diesel to natural gas conversion technology to the automotive aftermarket and through certain original equipment manufacturers (OEM'S). The Company's primary facility is a state-of-the-art systems development and emission testing lab in Atlanta, Georgia. The Company's current clients include General Motors (NYSE:GM - News), http://www.gm.com; United Parcel Service (NYSE:UPS - News), http://www.ups.com; US Postal Service; Dallas County School System, Portland, Oregon School System; Oklahoma Natural Gas and a host of private purchasers.
About PSGAS: PSGAS was formed in 2006 specifically to address the conversion of buses from diesel to NGV. It has partnered with PTT (the distributor of CNG in Thailand), Kasikorn Bank, a leading Thai Bank that will provide secure financial packages to the bus fleet owners, and Thai Transport Co Ltd, a leading bus operator in Thailand. PSGAS has commissioned a new modern bus engine and conversion workshop with experienced diesel engineers from Germany and Thailand. This facility will handle 10 conversions at a time and have a roll-out capacity of 30 buses per week. Further workshops are planned for other regions as the infrastructure and refuelling capacity is improved. PSGAS expect to have a capacity to convert 100 buses per week by end 2007.
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