The OilSpot News by DTN
Monday, February 8, 2010 VOLUME 8 ISSUE 389  

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Evolution Fuels Agrees to Lease 3 Kansas Fuel Stations

Evolution Fuels, Inc. in a Feb. 3 news release announced that it has finalized negotiations with J&J Developments, Inc. to lease three retail fuel stations owned by J&J, and the option to lease an additional ten fuel stations and truck stop travel plazas.

As part of its overall strategic plan, the company has formed an alliance with J&J, a premier commercial real estate developer with a strong focus on fuel stations, convenience stores and truck stop travel plazas. This alliance extends Evolution’s planned rollout region to the state of Kansas, and helps to expedite the plan in other areas of the southwestern U.S.

“The retail locations in Kansas afford Evolution the opportunity of immediate operations of top-flight fuel stations in excellent geographic regions for the sale of blended renewable fuels,” stated Evolution Fuels CEO Dennis McLaughlin.

The first lease has been executed for a fuel station located in Manhattan, Kan., which is currently operating under the Evolution Fuels brand. The reimaging of the station is anticipated to be completed by mid-month, and the company expects to implement sales of blended ethanol as quickly as possible.

The second station, a newly built fuel station/c-store, is strategically located on a prime intersection that serves a major corridor in eastern Topeka. The company expects to execute the lease for this station quickly, with construction seen completed and the station operational by the end of this month.

According to the release, the third site is a newly built fuel station/c-store, also located prime intersection of Topeka. The company expects to execute a lease for this site within the next few days and anticipates scheduled construction to be complete and the station operational by mid-month.

“We are pleased to have an ideal partner in J&J for the rapid rollout of the Evolution Fuels brand in Kansas, and for the potential rollout of more stations in other strategic areas in the near future,” said McLaughlin.

He continued that the company will continue to focus its efforts on similar rollouts in selected regions of the southwestern and southeastern U.S.

Meantime, Evolution it is finalizing the lease agreement for is first station in Dallas, adjacent to the upscale Park Cities neighborhood. The company said at the time that it expected to execute the lease quickly, with several weeks of engineering and construction to follow.

Additionally, the company said it will not pursue a lease of a second station in Dallas, nor will it acquire two fuel stations, located in Alabama and Mississippi, as previously announced in October 2009.

“After extensive due diligence, the company determined that at this time, these locations did not provide the necessary branding opportunity and acceptable level of profitability necessary to proceed,” the release read.

Evolution Fuels said it endeavors to market renewable transportation fuels at retail fuel stations that will provide ethanol blends ranging from 10 percent or E10 to 85 percent or E85. The company’s plan calls for the development of a chain of renewable fuel stations in the southwestern and southeastern U.S. that will be a combination of “Evolution Fuels”-branded fuel stations/c-stores and western-motif truck stops modeled after the Willie’s Place Truck Stop in Carl’s Corner, Texas.


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