Green Star Products States: ``Federal and State Legislatures Now Encouraging Greater Use of Biofuels to Reduce Dependence on For
July 20 2005 - 11:06AM
Business Wire
American Biofuels (ABF), which is 35% owned by Green Star Products,
Inc. (OTC:GSPI), announced today its decision to expand its
biodiesel production facility in Bakersfield, California, to
10-million gallons per year before the end of 2005. This decision
was made in response to recent overwhelming support to encourage
the use of biofuels by the Federal Government and also at the state
level in California and other states. On June 15, 2005, President
Bush addressed the 16th annual Energy Efficiency Forum. "Our
dependence on foreign oil is like a foreign tax on the American
Dream -- and that tax is growing every year," the President said.
The President went on to say, "We've got to be aggressive about
finding alternative sources of fuel and one such source is ethanol.
Ethanol comes from corn -- and we're pretty good about growing corn
here in America, we've got a lot of good corn growers. Therefore,
it makes sense to promote ethanol as an alternative to foreign
sources of oil. Ethanol can be mixed with gasoline to produce a
clean, efficient fuel." The President also stated, "By the way, we
can get the same type of alternative fuel from soybeans. It's
called biodiesel. And that's a promising source of energy. I went
to a biodiesel refinery in Virginia that is making fuel from
soybean oil. Other producers are making biodiesel, by the way, from
waste products like recycled cooking grease. Biodiesel can be used
in any vehicle that runs on regular diesel. So as you get more
clean diesel engines in America, biodiesel becomes an alternative
fuel for them. It burns more completely and produces less air
pollution than gasoline or regular diesel. "It makes sense for the
energy bill to encourage renewable sources of energy that are
becoming much more practical and much more economic in today's
world. To encourage greater use of ethanol and biodiesel, my
administration supports a flexible, cost-effective renewable fuel
standard as a part of the energy bill," as further stated by the
President. On June 28, 2005 the U.S. Senate passed the Energy Bill
(by a vote of 85 to 12), which extends the biodiesel tax incentive
through 2010, which was the soybean and biodiesel industry's No. 1
legislative priority. It also creates a Renewable Fuels Standard
(RFS) requiring the use of 8 billion gallons of renewable fuels,
like biodiesel and ethanol, by 2012. At the state level, on June 1,
2005, Governor Arnold Schwarzenegger announced greenhouse gas
emission reduction targets for California at the United Nations
World Environment Day celebrations in San Francisco. The governor
signed an Executive Order, which establishes these greenhouse gas
emission reduction targets and charges the California Environmental
Protection Agency secretary with the coordination of the oversight
of efforts to achieve them. "Technologies that reduce greenhouse
gas emissions are increasingly in demand in the worldwide
marketplace," said California Environmental Protection Agency
(Cal/EPA) Secretary Allan Lloyd, who will be responsible for
implementing the governor's Executive Order. As one of the largest
economies in the world and the most populous state in the nation,
California is the 10th largest carbon emitter in the world. If met
on schedule, the governor's targets will lead to greater emission
reductions over the next five years than will be achieved in the
larger economies of either Britain or France. "California companies
investing in these technologies are well placed to benefit from
this demand," Mr. Lloyd said. "This will boost California's economy
and protect public health and the environment." In April 2005,
nearly 500 California scientists with climate expertise urged the
governor to take significantly stronger action to protect our
health, economy, and environment. The governor's plans begin to
answer the scientists' call to action. Joseph LaStella, P.E.,
President of GSPI stated that "the California Energy Commission has
recommended State policy goals to reduce petroleum fuel use and to
increase the use of alternative fuels. Biodiesel was among the
alternative fuels considered and included within the Commission's
recommendations. Later this year the Commission will be reporting
that the State of California could increase its use of biodiesel
ASAP to replace up to 5% of the state's diesel consumption by 2010.
This would require 150 million gallons of biodiesel annually for
California alone, which would be equivalent to five times the
annual production of the whole United States in 2004." Mr. LaStella
went on to say that "this single act would reduce the global
warming gases produced by California by two billion pounds per
year, this is similar to placing 300,000 renewably-fuelled hydrogen
vehicles on the road today. Creating a biodiesel industry in
California will create jobs and a new industry in addition to
significant reductions in other emissions and taking a step closer
to a sustainable economy." Mr. LaStella also stated, "The great
State of California has the 5th largest economy in the world and
also is the 10th largest emitter of global warming gases.
Californians are usually looked upon as affluent with above average
life styles. The real fact is that the people of California use 40%
less electrical energy per capita than the rest of the United
States. California now leads again by adopting global warming
reductions similar to the requirement of the international Kyoto
Treaty accepted by 150 nations (as of July 7, 2005) and not by the
United States. Conservation and the use of renewable alternative
fuels such as biodiesel are the best means to cut global warming
without cutting back the needed growth of our industrial economy."
Biodiesel has strong grassroots support across the US and even some
OEMs have included a 5% blend of biodiesel in their new vehicles.
Daimler-Chrysler (www.chrysler.com) (NYSE:DCX) adds a 5% blend of
biodiesel in their new diesel powered Liberty Jeep coming off their
assembly line. Mr. LaStella also stated that "in response to the
ever growing demand for biodiesel, American Biofuels has already
begun its next expansion to 10 million gallons per year to be
completed before year end (expansion pictures available at
GreenStarUSA.com), and will continue its expansion next year to its
eventual planned capacity of 35 million gallons at the Bakersfield
location." American Biofuels has been a member of the National
Biodiesel Board (NBB) since 2001 and in the same year received its
registration for three EPA certificates for its biodiesel fuel and
fuel additives. ABF was also approved to participate in the US
Department of Agriculture (USDA) Bioenergy Program
(http://www.fsa.usda.gov/daco/bio_daco.htm), which pays producers
cash incentives for biodiesel production. In 2004, ABF was listed
on the USDA Bioenergy Program website as the 8th largest producer
of biodiesel in the U.S. and the largest producer on the west
coast. Green Star Products, Inc. is an environmentally friendly
company dedicated to creating innovative cost-effective products to
improve the quality of life and clean up the environment. GSPI is
involved in the production of renewable clean-burning biodiesel and
other products including lubricants, additives and devices that
reduce emissions and improve fuel economy in vehicles, machinery
and power plants. For more information, see GSPI's Web site at
http://www.GreenStarUSA.com or call Investor Relations at
619-864-4010, or fax 619-789-4743, or email info@GreenStarUSA.com.
Information about trading prices and volume can be obtained at
several Internet sites including http://www.bloomberg.com and
http://www.bigcharts.com under the ticker symbol "GSPI."
Forward-looking statements in the release are made pursuant to the
"safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such
forward-looking statements involve risks and uncertainties,
including without limitation, continued acceptance of the company's
products, increased levels of competition for the company, new
products and technological changes, the company's dependence on
third-party suppliers, and other risks detailed from time to time
in the company's periodic filings with the Securities and Exchange
Commission.
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