PRESS RELEASE: AGE Refining Commits to Low-Emission Diesel Product

contact:		Glen Gonzalez, President, 210/223-6515
subject:		AGE Refining Commits To Low-Emission Diesel Product
who:		San Antonio Business Journal
where:		San Antonio, TX
when:		April 29, 2005
email:		ggonzalez@agerefining.com

AGE refining Inc. has decided to stick with diesel.

The 10-year-old San Antonio oil refining company had recently been re-evaluating whether or not to continue producing diesel fuel in light of pending federal rules requiring low-sulfur content. Diesel products currently make up about 15 percent to 20 percent of the output at the company’s refinery at 7811 S. Presa St.

By committing to producing low-sulfur diesel by 2010, AGE will have to make some costly upgrades to its refinery. But Glen Gonzalez, Executive Vice President of AGE Refining, says his company is already ahead of the curve on that front. Because they only accept high-quality crude oil for delivery, AGE is able to produce a higher quality diesel product right now, he says.

Because AGE is a small refiner, it has until 2010 to meet federal requirements for low sulfur content in its diesel products. But Gonzalez says they can already produce low emission diesel (LED) that will allow end-users to meet state emission reduction requirements that will go into effect later this fall.

To show its continued commitment to the environment, Gonzalez says AGE will begin distributing its new LED right away, rather than waiting for the new state requirement scheduled to take effect on Oct. 1.

“To our knowledge, no one else is currently producing fuel to meet these specifications that the state will be asking for,” Gonzalez says. “We are creating fuel with superior (nitrogen oxide) reduction and we are making it available right away.”

AGE Refining manufactures, refines and markets jet fuels, diesel products, solvents and other highly specialized fuels. The company does not produce any gasoline.

Its refinery has the capacity to process 9,500 barrels per day of crude oil.

AGE was recently awarded a federal contract valued at about $70 million to provide jet fuel for Randolph and Lackland Air Force bases in San Antonio and for Laughlin Air Force Base near Del Rio.

Compatibility

Chase Garner, LED sales agent for AGE, says a unique feature of the new low emission diesel is that it will not require fleet owners to replace their diesel engines as they will when they transition to ultra-low sulfur diesel in a few years.

“It can be immediately transitioned into a user’s existing diesel program,” he says. “In fact, consumers can expect an improved performance due to the e enhanced cetane properties.”

Garner says AGE makes a point of always exceeding minimum expectations and specifications for the quality of its fuels.

Thus they were ready to start production of the new AGE LED fuel to meet the state’s previous April 1 deadline before that was pushed back to Oct. 1.

“We decided to go forward with production of our LED product and use that as an opportunity to grow our customer base in San Antonio and the surrounding areas,” he says.

Gonzalez says a function of AGE’s relatively small size is that it is able to serve as a specialty niche refiner and hone in on these specific fuel parameters being handed down by the state.

“We are excited to be able to participate in an environmental initiative such as this,” he says. “It is consistent with what this business has always done.”