Grainnet

Direct Fuels Opens First Ethanol Distribution Facility in North Texas Providing Regional Gasoline Providers With Easier Access to Renewable Fuel

Euless, TX—Direct Fuels, the largest independent regional fuel distributor and specialty refiner in North Texas, announced March 6 the opening of the region's first ethanol distribution facility.

Through a partnership between Direct Fuels and Dallas Fort Worth Rail Terminal LLC ("DFWRT"), a wholly-owned subsidiary of U.S. Development Group LLC, the facility became fully operational in January.

Direct Fuels has entered into a long-term agreement with DFWRT to provide and operate the product storage and truck rack portions of this ethanol operation.

Direct Fuels is providing approximately 110,000 barrels of ethanol product storage along with a high speed, two lane, fully automated truck rack.

DFWRT built the unit train unloading terminal on a nearby 15-acre parcel and connected that asset to Direct Fuels by a new dedicated ethanol pipeline.

This new ethanol operation is the only one in the region that can accommodate unit trains, making it an economical solution for customers.

The truck rack is open 24 hours per day, giving customers access to product when it is needed, versus when it must be planned around a scheduled delivery of rail cars.

According to Warren Bonham, president of Direct Fuels, the 11-acre ethanol distribution complex bolsters Direct Fuel's position as a "green" energy company, and the company expects more than 40% of its 2008 revenue to be generated from renewable and recycled fuel.

"Direct Fuels is dedicated to expanding the use and production of alternative fuels, and our new ethanol distribution facility will make it easier and more efficient for fuel providers in North Texas to obtain ethanol," said Bonham.

"We want to ensure that the citizens of North Texas have a constant, robust flow of this clean-burning, environmentally friendly resource," Bonham added.

Most gasoline today is enriched with up to 10% ethanol, helping the fuel burn cleaner and at a cooler temperature.

Emerging flex-fuel vehicles are designed to run on E85 fuel—85% ethanol and 15% gasoline—making it the cleanest-burning renewable fuel available for gasoline engines.

In its pure form, ethanol is the highest performing fuel on the market, with an octane rating of 113.

On Dec. 19, 2007, the Energy Independence and Security Act of 2007 was signed into law, amending the Renewable Fuels Standard (RFS) signed into law in 2005.

The bill recognizes the potential that renewable fuels offer to reduce foreign oil dependence and greenhouse gas emissions, while providing meaningful economic opportunity across the United States.

Direct Fuels intends to be a leader in Texas along each of these dimensions.

In addition to its ethanol distribution facility, Direct Fuels also operates a fuel-processing plant in Euless that refines transportation mixture, or transmix, back into various types and grades of usable fuel—similar to fuel recycling.

For more information, call 214-521-8596.