GS AgriFuels Executes Agreement to Develop Biodiesel Plant
NextGen Biodiesel System to be Used by Fulton, New York-Based Biodiesel Company
NEW YORK, Jan 16, 2007 (BUSINESS WIRE) -- GS AgriFuels Corporation (OTC Bulletin Board: GSGF) has executed an agreement with a subsidiary of Homeland Energy Biofuels, LLC ("Homeland Energy") to form GS Fulton Biodiesel LLC ("GS Fulton Biodiesel"). The partnership will construct a ten million gallon per year biodiesel plant - New York State's first commercial-scale facility - at the former Miller Brewing Company plant in Fulton, NY.
Homeland Energy, the lead developer in the project, has managed the feedstock, offtake and other technical and business aspects of the project over the past year and had selected NextGen Fuel Inc.'s proprietary biodiesel production equipment as the production technology for the project.
The biodiesel plant will be immediately adjacent to a 110-million gallon per year ethanol facility being constructed by Northeast Biofuels at the Riverview Business Park. GS Fulton Biodiesel plans to re-utilize a significant amount of existing brewery site infrastructure, including a building, roads, utilities and some of the existing storage tanks. John Fox of Homeland Energy stated, "Our partnership with GS AgriFuels to complete the first commercial-scale biodiesel plant in New York State is timely and beneficial. Besides backing the project with capital, GS AgriFuels' team's experience and knowledge of biofuels project development is indispensable."
The New York State Energy Research and Development Authority ("NYSERDA") awarded NextGen Fuel, Inc. a $250,000 contract in 2005 to design and build a biodiesel production facility in Fulton, NY (which is in Oswego County) using the patent-pending process intensification technology developed by NextGen. Fabrication of the NextGen biodiesel system has already begun by Warnecke Design, Inc., an equipment manufacturer that specializes in biofuels equipment and infrastructure support.
GS AgriFuels President and Chief Executive Officer, Thomas Scozzafava, stated, "We are pleased to have been able to partner with Homeland Energy and participate in this, our first majority-owned biofuels production facility. I'm proud to be involved with a project that will re-utilize an existing industrial facility to produce clean fuels that will benefit both the central New York economy and its environment, and we appreciate all of the support the project has received from NYSERDA, Senator Wright, Assemblyman Barclay, and Michael Treadwell of the Oswego County IDA. We hope to begin hiring shortly and commence biodiesel production by mid-2007." As part of the transaction, Mr. Scozzafava and Patrick Thornton will be placed on GS Fulton Biodiesel's board of managers.
Biodiesel is a renewable fuel manufactured from domestic sources such as vegetable oils, animal fats, and recycled cooking oils. Typically blended with conventional diesel, biodiesel burns cleaner and releases significantly fewer pollutants than petroleum diesel.
About GS AgriFuels Corporation
GS AgriFuels (www.gs-agrifuels.com) was founded to produce and sell clean fuels from agriproducts in innovative ways. GS AgriFuels' business model is based on the manufacturing and sales of proprietary biodiesel equipment and the use of new technologies to produce biodiesel, synthetic diesel, and ethanol from non-traditional feedstocks such as corn oil and cellulosic biomass through the utilization of several new proprietary technologies, including innovative desiccation, process intensification, gasification, catalytic, and carbon capture technologies, synergistically at small-scales to enable the refining of many forms of biomass into clean fuels at Integrated Multi-Fuel ("IMF") production facilities.
About Homeland Energy
Homeland Energy (www.homeland-energy.com) is a developer of clean, alternative fuel projects that provide customers with low-cost energy and also help to preserve the environment. Current projects include developing and constructing biodiesel production facilities in the northeastern U.S. and developing the fueling infrastructure and market for compressed natural gas vehicles. Homeland Energy has also managed the development of New York's first hydrogen fueling station in Albany, and is currently involved with an innovative second hydrogen fueling facility to be opened in 2007.
About NextGen Fuel, Inc.
NextGen Fuel Inc.'s (www.nextgenfuel.com) biodiesel process technology leverages innovative process intensification techniques to accelerate and enhance traditional biodiesel reaction kinetics, thus decreasing process time, reducing energy and raw material needs, and increasing product quality. These benefits reduce capital and operating costs by as much as 50% over traditional approaches, and NextGen's systems can be deployed to a plant in as quickly as 12-18 weeks. NextGen currently offers turn-key biodiesel production plants rated for 5 million gallons per year and 10 million gallons per year, but the modular and continuous-flow aspects of the technology make scaling plants up or down easy and cost-effective.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GS AgriFuels Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
SOURCE: GS AgriFuels Corporation
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