GSPI Signs Contract to Build Algae-to-Biodiesel Facility
SAN DIEGO–(BUSINESS WIRE)–November 13, 2007 Green Star Products, Inc. (OTC:GSPI) today announced that it has signed a contract to build a 100-acre Commercial Algae Facility in the Midwest.
Biotech Research, Inc. (BTR), who is a Consortium partner with GSPI, has signed the contract with GSPI to start initial preparation and material acquisition for field construction to begin in March 2008.
The 100-acre Algae Facility will be constructed adjacent to an existing biodiesel plant and will use the CO2 emitted from the biodiesel plant’s boilers to feed a portion of the algae facility needs (CO2 mitigation), which will reduce Global Warming emissions.
The algae oil produced from the facility will be turned into biodiesel through the existing biodiesel plant facilities.
GSPI will construct the algae production facility and operate it for 18-months and will participate in ongoing royalties with BTR from sales of algae oil and high protein meal.
It is also the business strategy that BTR and GSPI will build GSPI Biodiesel Production plants alongside Algae Production Facilities at other locations in the U.S.
BTR has formulated business plans to build several 1,000-acre Algae Facilities, each in conjunction with a GSPI Biodiesel Processing facility.
Negotiations are in progress with funding institutions.
GSPI will perform the engineering, construction and operation of the 1,000-acre facilities and participate in the ongoing revenue stream.
Please review the press release dated Nov. 9, 2007 for further details on GSPI Consortium partners and sustainable energy strategies.
Further important references:
GSPI completed a successful Phase I and II, 40,000-liter demonstration algae facility in 2007 (see press releases dated May 11 and July 9, 2007, pictures related to algae demo plant operations and two-minute video on Green Star’s website GreenStarUSA.com).
Why are algae important?
1. Algae produce 100 times more oil per acre than traditional food oilseed crops such as soy etc. Note: Algae produces 4000 gallons of oil per acre per year versus 50 gallons per acre for soy.)
2. Algae eat CO2, the major Global Warming Gas, and produce oxygen.
3. Algae require only sunshine and non-drinkable (salt or brackish) water.
4. Algae do not compete with food crops for either agricultural land or fresh water.
5. Algae can reproduce themselves and their oil every 6 hours, while it takes Mother Nature millions of years to produce crude oil in the ground.
Furthermore, algae can exceed 10,000-gallons of oil per acre per year in the foreseeable future.
This would be the equivalent of having a renewable oil well in your backyard.
Sound like a dream! Not so!
At the conclusion of an 18-year study on algae (1978 to 1995) NREL arrived at the following conclusions:
“High oil-producing algae can be used to produce biodiesel, a chemically modified natural oil that is emerging as an exciting new option for diesel engines. At the same time, algae technology provides a means for recycling waste carbon from fossil fuel combustion. Algal biodiesel is one of the only avenues available for high-volume re-use of CO2 generated in power plants. It is a technology that marries the potential need for carbon disposal in the electric utility industry with the need for clean-burning alternatives to petroleum in the transportation sector.” (Source NREL)
It further stated, “Put quite simply, microalgae are remarkable and efficient biological factories capable of taking a waste (zero-energy) form of carbon (CO2) and converting it into a high-density liquid form of energy (natural oil). This ability has been the foundation of the research program funded by the Office Fuels Development.” (Source NREL)
It further stated, “In a world of ever more limited natural resources, algae technology offers the opportunity to utilize land and water resources that are, today, unsuited for any other use. Land use needs for microalgae complement, rather than compete, with other biomass-based fuel technologies.” (Source NREL)
Mr. LaStella, President of GSPI, stated, “Algae were responsible for creating the Earth’s oxygen atmosphere 3 billion years ago and it took around 2 billion years to form the modern atmosphere with 20% oxygen. Without algae we would not be here. We must ask our micro-size friends to again save us from ourselves.”
As little as 18 months ago most of the energy sector was not aware of the potential of algae.
Now, even the oil companies and Congress are accepting the overwhelming evidence of its potential.
GSPI and its Consortium partners have been researching algae for many years and believe they have a lead in this race as documented in the past press announcements and on our website – GreenStarUSA.com.
In conclusion, Mr. LaStella stated, “The biodiesel production and algae production business activities are very competitive. We believe that GSPI is the only company that has demonstrated a sustainable and efficient commercial-size proprietary process technology in both these arenas. In the past, other companies, many of them start-ups, have carefully reviewed any GSPI information that may be helpful to their own success. This includes project location, business contacts, profit margins, project costs, technical and process information, etc. For this reason, GSPI has limited its intellectual property and business strategy information on its press releases.”
GSPI is well aware of corporate espionage and will go to great lengths to protect its stockholders’ intellectual assets.
Green Star Products, Inc. (OTC:GSPI) (OTC:GSPI.PK) 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.pinksheets.com, 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.
Joseph LaStella, President
Last Updated: November 13, 2007 09:30 EST