Green Star Products Signs Contract to Build 90 Biodiesel Reactors
November 13 2006 - 9:30AM
Business Wire
Green Star Products, Inc. (OTC: GSPI) today announced that it has
signed an agreement with De Beers Fuel Limited of South Africa to
build 90 biodiesel reactors. Each of the biodiesel reactors will be
capable of producing 10 million gallons of biodiesel each year for
a total production capacity of 900,000,000 gallons per year when
operating at full capacity, which is 4 times greater than the
entire U.S. output in 2006. The 2-ton reactors will be built by
GSPI at their Glenns Ferry Facility in Idaho and delivered over the
next 18 months. The first reactor was shipped November 8, 2006 by
airfreight to South Africa. Mr. Joseph LaStella, President of GSPI,
stated, "Mr. Frik de Beer, President of De Beers Fuel Limited, an
industry visionary has successfully assembled an impressive array
of Global Warming Reduction Technologies from all over the world,
which brings South Africa closer to a totally sustainable society.�
Mr. de Beer�s business model also includes a franchising strategy,
developed by associate Hendy Schoonbee for independent operators to
participate in his plan and has already received financial
commitments to build 90 biodiesel plants each at
10-million-gallons-per-year capacity. This said franchising
strategy is a first in the world. Mr. LaStella further stated, �The
De Beers biodiesel plant, located in Naboomspruit, approximately 2�
hours from Johannesburg, is currently in operation and will include
some very unique features with modifications to upgrade technology.
These are: 1) GSPI reactors, which process raw materials into
biodiesel in minutes (versus one to two hours for the rest of the
industry), will transform the De Beers plant into a
State-of-the-Art Continuous Flow Process to increase efficiency and
reduce operating costs. 2) The marriage of the two biodiesel
production technologies will allow plants to be constructed at a
fraction of the present industry costs and can be built in record
time.� Mr. LaStella further stated, �GSPI has declined many offers
to sell its reactors and biodiesel plant technology over these past
10 months waiting for the right Joint Venture opportunity.� The De
Beers opportunity offers GSPI many advantages such as: 1) Immediate
expansion on a grand scale - 90 reactors in 18 months. 2)
Intellectual property security of GSPI reactors through franchise
licensing. 3) Royalty stream payments to GSPI for each reactor. 4)
Further expansion beyond 18 months. 5) R & D opportunities for
both companies. Presently, the De Beers plant is now operating at
10,000,000 gallons per year on sunflower seed oil as feedstock and
has contracted for additional feedstock for additional plants.
However, the final answer for biodiesel feedstock will not be oil
crops - it will be algae. For example, soybean produces only 48
gallons of oil per acre per year, canola produces 140 gallons per
acre and algae can produce well over 10,000 gallons per acre. This
figure has been verified in actual algae field production tests by
the US Department of Energy in an 18-year Algae Study Program from
1978 � 1996. This makes algae the only worldwide feedstock capable
of replacing crude oil. Making use of algae also means not
competing with crops for food sources that would otherwise lead to
an increase in food prices. Mr. de Beer has made great strides to
acquire the latest Algae Production Technology. In recent weeks
there have been many media articles about the success of the algae
bioreactor operating at MIT (see
http://web.mit.edu/erc/spotlights/alg-all.html) utilizing the MIT
CO2 exhaust boiler emissions as feed for the algae. Algae consumes
CO2, a major Global Warming Gas. After consumption of the CO2, the
algae produces oil (for biodiesel manufacturing) and oxygen.
Therefore, the process of using algae creates renewable,
sustainable biofuel and reduces global warming gases to better the
environment. Mr. de Beer has entered into an agreement with
Greenfuel Technologies Corporation, (see www.greenfuelonline.com)
and has purchased and removed the MIT bioreactor from Cambridge,
Massachusetts, and transported it to South Africa. It has been
reassembled on the biodiesel plant site in Naboomspruit, South
Africa, and is now awaiting the arrival of the algae to be
inoculated to start production. At the Naboomspruit site
construction will soon be underway at the rail spur for a crushing
plant to process oil from the planting of sunflowers throughout the
region. Mr. de Beer also supports, along with the development of
the algae growth technology, the local farming industry that will
benefit with the planting of thousands of acres of sunflowers and
other feedstocks for oils to be processed into biodiesel fuel. Most
of the 90 franchised biodiesel plants are located close to electric
power plants as well as other CO2 emitters, to utilize their stack
emissions (CO2) to feed the algae farms when they switch over
feedstock from oil seed crops to algae. The franchising plan
reduces the initial cost of the biodiesel plant significantly for
participants. Franchises will only be paying in the range of 10
cents per installed gallon (depending on location and logistics),
while the rest of the industry is paying $0.70 to $1.50 per
installed gallon � based on National Biodiesel Board�s Chief
Engineer, Steve Howell�s survey report published in Render Magazine
- February 2005 issue (see www.rendermagazine.com for complete
article). South Africa has huge potential to sell �carbon credits�
to European Industries under the European Union (EU) international
carbon dioxide emissions trading and market mechanism of the Kyoto
Protocol. This protocol comes into force February 16, 2005 and aims
to reduce the emission of greenhouse gases linked to global warming
according to the source (Reuters). As a developing country, South
Africa�s companies and industries have no set Kyoto targets for
emission reductions. Under the Clean Development Mechanism (CDM),
as long as South Africa can demonstrate they have reduced their own
emissions under an approved and verified project, they can sell
carbon credits to European companies that exceed their caps through
the World Bank. The De Beers Ltd. franchised plants will be
eligible for considerable carbon credits under this CDM program as
they come online. GSPI is proud to be part of this De Beers Fuel
Limited Team in South Africa and has already set up operations at
its 90,000 sq. ft. Idaho Facility to fabricate as many as 150
reactors per year to accommodate anticipated expansion of De Beers
plant facilities into other countries, which have already shown a
great interest in the franchising business strategy. For more
information on De Beers Fuel Ltd, visit their website at
www.infinitibiodiesel.com or e-mail info@infinitibiodiesel.com.
Green Star Products, Inc. (OTC: GSPI) 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
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. Green Star Products, Inc. (OTC: GSPI) today announced
that it has signed an agreement with De Beers Fuel Limited of South
Africa to build 90 biodiesel reactors. Each of the biodiesel
reactors will be capable of producing 10 million gallons of
biodiesel each year for a total production capacity of 900,000,000
gallons per year when operating at full capacity, which is 4 times
greater than the entire U.S. output in 2006. The 2-ton reactors
will be built by GSPI at their Glenns Ferry Facility in Idaho and
delivered over the next 18 months. The first reactor was shipped
November 8, 2006 by airfreight to South Africa. Mr. Joseph
LaStella, President of GSPI, stated, "Mr. Frik de Beer, President
of De Beers Fuel Limited, an industry visionary has successfully
assembled an impressive array of Global Warming Reduction
Technologies from all over the world, which brings South Africa
closer to a totally sustainable society." Mr. de Beer's business
model also includes a franchising strategy, developed by associate
Hendy Schoonbee for independent operators to participate in his
plan and has already received financial commitments to build 90
biodiesel plants each at 10-million-gallons-per-year capacity. This
said franchising strategy is a first in the world. Mr. LaStella
further stated, "The De Beers biodiesel plant, located in
Naboomspruit, approximately 2 1/2 hours from Johannesburg, is
currently in operation and will include some very unique features
with modifications to upgrade technology. These are: -- 1) GSPI
reactors, which process raw materials into biodiesel in minutes
(versus one to two hours for the rest of the industry), will
transform the De Beers plant into a State-of-the-Art Continuous
Flow Process to increase efficiency and reduce operating costs. --
2) The marriage of the two biodiesel production technologies will
allow plants to be constructed at a fraction of the present
industry costs and can be built in record time." Mr. LaStella
further stated, "GSPI has declined many offers to sell its reactors
and biodiesel plant technology over these past 10 months waiting
for the right Joint Venture opportunity." The De Beers opportunity
offers GSPI many advantages such as: -- 1) Immediate expansion on a
grand scale - 90 reactors in 18 months. -- 2) Intellectual property
security of GSPI reactors through franchise licensing. -- 3)
Royalty stream payments to GSPI for each reactor. -- 4) Further
expansion beyond 18 months. -- 5) R & D opportunities for both
companies. Presently, the De Beers plant is now operating at
10,000,000 gallons per year on sunflower seed oil as feedstock and
has contracted for additional feedstock for additional plants.
However, the final answer for biodiesel feedstock will not be oil
crops - it will be algae. For example, soybean produces only 48
gallons of oil per acre per year, canola produces 140 gallons per
acre and algae can produce well over 10,000 gallons per acre. This
figure has been verified in actual algae field production tests by
the US Department of Energy in an 18-year Algae Study Program from
1978 - 1996. This makes algae the only worldwide feedstock capable
of replacing crude oil. Making use of algae also means not
competing with crops for food sources that would otherwise lead to
an increase in food prices. Mr. de Beer has made great strides to
acquire the latest Algae Production Technology. In recent weeks
there have been many media articles about the success of the algae
bioreactor operating at MIT (see
http://web.mit.edu/erc/spotlights/alg-all.html) utilizing the MIT
CO2 exhaust boiler emissions as feed for the algae. Algae consumes
CO2, a major Global Warming Gas. After consumption of the CO2, the
algae produces oil (for biodiesel manufacturing) and oxygen.
Therefore, the process of using algae creates renewable,
sustainable biofuel and reduces global warming gases to better the
environment. Mr. de Beer has entered into an agreement with
Greenfuel Technologies Corporation, (see www.greenfuelonline.com)
and has purchased and removed the MIT bioreactor from Cambridge,
Massachusetts, and transported it to South Africa. It has been
reassembled on the biodiesel plant site in Naboomspruit, South
Africa, and is now awaiting the arrival of the algae to be
inoculated to start production. At the Naboomspruit site
construction will soon be underway at the rail spur for a crushing
plant to process oil from the planting of sunflowers throughout the
region. Mr. de Beer also supports, along with the development of
the algae growth technology, the local farming industry that will
benefit with the planting of thousands of acres of sunflowers and
other feedstocks for oils to be processed into biodiesel fuel. Most
of the 90 franchised biodiesel plants are located close to electric
power plants as well as other CO2 emitters, to utilize their stack
emissions (CO2) to feed the algae farms when they switch over
feedstock from oil seed crops to algae. The franchising plan
reduces the initial cost of the biodiesel plant significantly for
participants. Franchises will only be paying in the range of 10
cents per installed gallon (depending on location and logistics),
while the rest of the industry is paying $0.70 to $1.50 per
installed gallon - based on National Biodiesel Board's Chief
Engineer, Steve Howell's survey report published in Render Magazine
- February 2005 issue (see www.rendermagazine.com for complete
article). South Africa has huge potential to sell "carbon credits"
to European Industries under the European Union (EU) international
carbon dioxide emissions trading and market mechanism of the Kyoto
Protocol. This protocol comes into force February 16, 2005 and aims
to reduce the emission of greenhouse gases linked to global warming
according to the source (Reuters). As a developing country, South
Africa's companies and industries have no set Kyoto targets for
emission reductions. Under the Clean Development Mechanism (CDM),
as long as South Africa can demonstrate they have reduced their own
emissions under an approved and verified project, they can sell
carbon credits to European companies that exceed their caps through
the World Bank. The De Beers Ltd. franchised plants will be
eligible for considerable carbon credits under this CDM program as
they come online. GSPI is proud to be part of this De Beers Fuel
Limited Team in South Africa and has already set up operations at
its 90,000 sq. ft. Idaho Facility to fabricate as many as 150
reactors per year to accommodate anticipated expansion of De Beers
plant facilities into other countries, which have already shown a
great interest in the franchising business strategy. For more
information on De Beers Fuel Ltd, visit their website at
www.infinitibiodiesel.com or e-mail info@infinitibiodiesel.com.
Green Star Products, Inc. (OTC: GSPI) 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
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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