IAV begins construction of Carbon Recycling International’s first clean fuel production plant at Svartsengi geothermal power plant in Iceland

According to plan the plant will be ready for testing and production in March 2011. The CRI plant uses electricity and CO2 emissions from the geothermal power plant to produce renewable fuel for cars. This process is based on technology developed and patented by CRI. At full scale, production capacity of the CRI plant will be 5 million liters of Renewable Methanol per year.The fuel will initially be introduced on the Icelandic market.

Renewable Methanol can be blended with gasoline or biodiesel to make clean fuel for cars without requiring any change of engines or distribution methods. Benefits include lower pollution, better fuel efficiency and a sustainable domestic fuel supply made with electricity, CO2 emissions and water. This will make Iceland cleaner, less dependent on import of oil and potentially a net fuel exporter in the future.

KC Tran, CEO of Carbon Recycling International said: „I am looking forward to working with IAV on this project. They bring skill, knowledge and enthusiasm to bear, combined with experience and a high quality standard. This plant is a big step forward. It will help to lower air pollution in the Grindavik area and create new opportunities for members of the community as well as in Iceland as a whole.“

Karl Thrainsson, CEO of IAV said that „We welcome the opportunity to work with CRI, which is an entrepreneurial and forward thinking clean technology company. We are also pleased to be part of putting together the first clean fuel production plant of its kind in the world based on Icelandic technology.“

Carbon Recycling International has been in operation since 2006 and is owned by Icelandic and American investors. It is headquartered at Borgartun 27 in Reykjavik.

IAV is one of Iceland's oldest and largest construction companies established in 1954. It is headquartered at Hofdabakki 9 in Reykjavik. For more information please see the website http://www.iav.is/english.

For further information please contact KC Tran, CEO of CRI. Carbon Recycling International Borgartun 27, 105 Reykjavík info@cri.is| +354 568 6878