GSPI Consortium Commits to Five Biofuel Plants
August 09 2006 - 11:40AM
Business Wire
Green Star Products, Inc. (OTC:GSPI) (Website: GreenStarUSA.com)
announced today that funding commitments have been made by its
Consortium of partners (see press release dated June 28, 2006) to
purchase one ethanol plant and to build three biodiesel plants and
purchase one ethanol research facility. GSPI and its Consortium
partners have received over 30 joint venture offers to build
biodiesel plants and Bio-Refineries in the U.S. and six foreign
countries. Although most of the joint venture offers were viable
projects, GSPI had to choose its projects carefully to suit the
long-term objectives of the Consortium, which are: 1) Production of
ethanol from low cost agricultural waste products (wood chips,
switch-grass, rice stalks, municipal waste, etc.) from biomass
based on our proprietary process patents (see press release dated
July 7, 2006). 2) Production of biodiesel integrating our
commercially proven proprietary continuous flow waterless biodiesel
process in conjunction with local farmers to supply long-term
feedstock (canola seeds or equivalent). This will insure
sustainability of plant operation and supply fuel for the local
community at competitive prices. In the rapidly expanding biodiesel
industry long-term feedstock availability is of prime concern!
According to Green Star Products, most farmers are eager to
participate even before we present them with reality factors
concerning their long-term fuel availability. The majority of the
public does not realize that the U.S. burns 25% of the entire world
oil production each day. However, the U.S. only has 2% of the known
world oil reserves and only 8% of the refinery capacity. The
question is: Are the farmers (or anyone else for that matter)
willing to gamble on that inequitable fuel equation to keep the
farming equipment running? Probably not! What we offer the farmers
in effect is insurance that we are the equivalent of a local oil
production refinery that can provide fuel to local communities
regardless of world oil availability. Mr. Joseph LaStella, P.E.
President of Green Star Products, stated, "We assure
sustainability, if the farmer provides oilseeds to us. If this
happens, we can provide fuel and animal feed at reasonable prices
back to the farmer. This dual arrangement has now removed all the
intermediate companies (storage, transportation, packaging,
crushing) that substantially increase the retail price of fuel and
animal feed. Our company and the farmers share in those savings and
provide security of fuel supply." GSPI continues to receive
requests to build Biodiesel and Bio-Refinery plants and in response
to this demand we have begun to increase the Consortium's
engineering and field personnel to address this increased demand.
The alternative fuel industry is experiencing an unprecedented
surge of financial support to greatly increase domestic capacity of
sustainable fuels and energy. A recent BusinessWeek article (August
14, 2006) titled "Wall Street's New Love Affair" explains why some
of the world's smartest investors are betting billions on clean
energy. The article identified some of the richest men in the U.S.
that have committed hundreds of millions of dollars to reduce
Global Warming and provide energy independence for the U.S., they
include: Richard Branson, Paul Allen, Bill Gates, Warren Buffett,
Jeff Immelt, Vinod Khosla (Co-founder of Sun Microsystems), and
Google Co-founders Larry Page and Sergey Brin. The article further
stated: "We're seeing an alignment of the environmental interests,
automakers, the agricultural industry, the security and
energy-independence proponents, even the evangelicals," says
billionaire venture capitalist L. John Doerr. "When did all those
(interests) come together before?" In many other articles across
the United States, other Wall Street giants, such as Goldman Sachs,
are now in the process of committing billions of dollars to the
alternative fuels industry. The race is especially acute in the
ethanol industry. Mr. LaStella also stated that, "It's a known fact
that biofuel companies do extensive studies before they build and
there's a lot of industry posturing for position to secure prime
situations." Green Star's competitive advantages are also tied to
specific location advantages. Therefore, details will only be
released as each project security is achieved. Presently, major
biodiesel plant equipment (reactors, centrifuges, pumps, tanks
chillers, heat exchangers, etc.) is being shipped to Northwest U.S.
to commence construction in the near future. As previously stated
in our June 28 press release, GSPI Consortium strategic plans
include at least 500 million gallons of biofuel capacity by 2010.
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. Green Star
Products 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 Green Star
Products' Web site at 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 Bloomberg.com
and 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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