Green Star Products, Inc. (GSPI.OB) has signed an agreement with De Beers Fuel Limited of South Africa to build 90 biodiesel plants.
Each plant will have a 10 million gallon annual capacity. 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.
Presently, the De Beers plant is now operating at 10 million 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.
De Beer has acquired the algae bioreactor from MIT which uses CO2 exhaust boiler emissions as feed for the algae.
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.
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.
GSPI has a 90,000 sq. ft. Idaho Facility from which is plans 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.
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