Earth Gen-Biofuel has signed a memorandum of understanding to create two agricultural projects in Southeast Asia. One operation located in Vietnam and one in Laos, encompassing a total of 70,000 acres of land dedicated to growing castor beans to be used for creating a vegetable oil used in Biofuel. The plan is to have Earth Gen-Biofuel be the agricultural and business manager of the operation. The project was created in conjunction with the Governments of Vietnam and Laos to continue to develop a Biofuel Industry based on land granted as the Nui Rung Project and used by Earth Gen-Biofuel. The operations are to be carried out in line with the "Biofuel Development Project" up through 2015 with an extension to 2025 as approved under Decision number 177/2007/QD-TTg of the Prime Minister dated November 20, 2007 under the auspices of the Laws of Vietnam.
The project calls for Earth Gen-Biofuel to provide the seed-stock for planting, the planting equipment, the harvesting equipment, the transportation and the farming management for the 70,000 acre project, as well as the marketing expertise to sell the crop as harvested into the international market. The farming plan is proposed to begin in 90 to 120 days and calls for 1,200 acres to be planted first and then followed by a 2,500 to 5,000 acre planting every 3 to 4 months in balance of the first year, bringing the total acres in production to 20,000. The balance of 50,000 acres will go into production over the next 24-month period. In exchange for Earth Gen-Biofuel providing management and the operating capital, the governments are providing the land and paying the domestic work force. The proposed terms of the agreement call for Earth Gen-Biofuel to purchase the harvested and processed bean crop at a fixed price below the world market price. The vegetable oil derived from the processing of the beans is in widespread use and in high demand for blending with diesel fuel to create a blended Biofuel. Castor Beans will grow well in this region and can be produced economically in these countries. The end product will meet the growing demand for Biofuel in neighboring China and elsewhere in the World.