Aug. 17, 2006 — Nanomaterials maker Oxonica announced it has reached an agreement with Petrol Ofisi A.S., Turkey’s leading national oil company, to supply its Envirox fuel borne nanocatalyst for use in diesel fuel across Petrol Ofisi’s nationwide distribution network.

Oxonica said that the agreement is the first of its kind for Envirox and is in line with Oxonica’s strategy of signing commercially significant deals with major partners to access volume markets. The company said it expects the deal to generate sales for Oxonica worth $12.7 million in 2006.

The company said that in field trials, Envirox has been shown to reduce fuel consumption in diesel engines by 5 percent to 10 percent with commensurate reductions in carbon dioxide. It also said that Envirox has been shown to reduce particulate emissions by up to 15 percent.

The agreement provides for an initial supply of Envirox which will be used by Petrol Ofisi to evaluate market acceptance of the enhanced fuel within its national market. Following the marketing evaluation, Oxonica expects to be in a position to indicate likely levels of ongoing demand in the first quarter of 2007 In addition, Oxonica also announced the launch of a collaboration with Petrol Ofisi and Oxford University to develop new catalysts for the petrochemical industry.