Engineering News

Green Star Products Expands into Biodiesel Plant Construction
Friday March 31, 9:30 am ET

SAN DIEGO--(BUSINESS WIRE)--March 31, 2006--Green Star Products, Inc. announced today that it has decided to utilize its Biodiesel Engineering and Construction Experience to construct Joint Venture Facilities in the U.S. and other countries.

GSPI presently holds a 35% equity member ownership in American Biofuels LLC (ABF) and assisted ABF in engineering and operations of ABF'S Biodiesel production facility in Bakersfield, California for the past 3 years.

GSPI has supported ABF biodiesel development with engineering, construction and financial support to build one of the largest biodiesel plants on the West Coast.

A recent fire (see GSPI press release dated February 21, 2006) at the ABF Bakersfield Plant site has shut down production and will require some time for cleanup of the site before reconstruction can begin.

GSPI has exercised its option to secure its own biodiesel license. GSPI will use its engineering expertise to build continuous flow, waterless biodiesel plants under Joint Venture arrangements to include consulting fees, licensing fees for technology and continued royalty payments.

GSPI Biodiesel Plants include the following Competitive Advantages:

  • 1. All plant design is modularized so additional capacity can be added at minimal cost.
  • 2. Speed of construction - plant can be placed in service in 14-16 weeks versus industry standard average of 14 to 18 months.
  • 3. Small footprint of plant because of its "continuous flow waterless design" versus industry batch plant design, results in lower production and maintenance costs.
  • 4. Minimum plant management and operations staff required because plant is automated.
  • 5. Proven technology - Industrial size plan operated and produced biodiesel for over three years in Bakersfield, California.
  • 6. Minimal permits required from regulatory agencies. Plant requires no wastewater permit, which could take up to one year to obtain and minimum air quality permits.
  • 7. The plant design is very energy efficient and reduces energy requirements by over 30% of industry average.
  • 8. Lower capital costs by at least 50% compared to Biodiesel Industry Standards.
  • 9. Faster achievement of positive cash flow is due to a much shorter time frame to complete construction and permitting.

These Competitive Advantages have been solidly demonstrated over a three-year production period at the ABF Bakersfield Biodiesel Facility.

GSPI has already entered into final negotiations to construct two Biodiesel Plants.

GSPI'S Lubricant Division, which operates its business activities separately from GSPI'S Biodiesel Division, is also continuing to expand its Retail Product Line in the U.S. and abroad (see GSPI press releases dated January 31 and March 7, 2006).

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.

Source: Green Star Products, Inc.

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