World Bank Urges CO2 Markets To Invest In Africa
December 07 2006 - 10:00AM
Business Wire
Green Star Products, Inc. (OTC:GSPI) recently announced that it has
signed an agreement with De Beers Fuel Limited of South Africa to
build 90 biodiesel reactors. The first reactor was delivered (by
air freight) on November 15, 2006 (see GSPI Press Release dated
Nov. 13, 2006 for details). The GSPI/De Beers biodiesel project,
with a total of 900 million gallons of biodiesel production
capacity (at full capacity), offers an opportunity to acquire
valuable carbon credits. Some of the carbon credits will be
allocated to carbon funds run by the World Bank on behalf of
investors and governments. Others, however, are being bought by
private sector entities. On November 16, 2006 (Reuters) The World
Bank criticized carbon credits market investors for failing to fund
clean energy projects in Africa: �The World bank urges CO2 markets
to invest in Africa.� Many investors believe that the risk of
investment in some African countries is too high and the carbon
credits only offset a small portion of the risk, especially when
considering the high capital costs on wind and solar energy
projects. However, this may not be the case with the De Beers/GSPI
franchising of biodiesel plants in South Africa. The carbon credit
trading allowances versus capital costs are significantly better
for the De Beers project and would offer a greater hedge on capital
investment than other clean energy projects. This situation occurs
because of two factors: 1) Capital costs are significantly reduced
due to the franchising business strategy. 2) Capital costs are
further reduced due to the design and engineering that incorporates
an efficient continuous process with advanced engineering
simplicity. �The market is still very much in its infancy and while
South Africa is ripe for it, few have taken the plunge� (Reuters
February 2005). De Beers has already received financial commitments
to build 90 biodiesel plants each at 10 million gallons per year
capacity that would initially use sunflower seed oil as feedstock
but would switch to algae as soon as possible (see GSPI Press
Release dated Nov. 13, 2006 at GreenStarUSA.com). The ability to
create projects in developing countries that generate carbon
credits was established under the Kyoto Protocol (Treaty), which
has been ratified by 165 nations to reduce the emissions of
greenhouse gases that cause Climate Change (Global Warming). Each
project must be registered and approved before receiving
accreditation. U.N. Secretary-General Kofi Annan recently stated at
the U.N. Climate Change Conference, �Climate change is not just an
environmental issue, as too many people still believe. It is an
all-encompassing threat.� Mr. Annan went on to say, �This is not
science fiction. These are plausible scenarios, based on clear and
rigorous scientific modeling. A few die-hard skeptics continue to
deny global warming is taking place and try to sow doubt. They
should be seen for what they are: out of step, out of arguments and
out of time.� Mr. Annan further stated, �Spurred by the Kyoto
Protocol, international carbon finance flows to developing
countries could reach $100 billion per year.� GSPI and its
Consortium are proud to be part of this De Beers Fuel Limited Team
in South Africa and have already set up operations at its 90,000
sq. ft. 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 and its
Consortium are 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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