FOR IMMEDIATE RELEASE
World Bank Urges CO2 Markets To Invest In Africa
Green Star Delivers 1st of 90 Biodiesel Reactors to South Africa
SAN DIEGO, CALIF. Dec. 7, 2006 — Green Star Products, Inc. (US OTC: GSPI) recently announced that it has signed an agreement with De Beers Fuel Limited of South Africa to build 90 biodiesel reactors. The first reactor was delivered (by air freight) on November 15, 2006 (see GSPI Press Release dated Nov. 13, 2006 for details).
The GSPI / De Beers biodiesel project with a total of 900 million gallons of biodiesel production capacity (at full capacity) offers an opportunity to acquire valuable carbon credits.
Some of the carbon credits will be allocated to carbon funds run by the World Bank on behalf of investors and governments. Others, however, are being bought by private sector entities.
On November 16, 2006 (Reuters) The World Bank criticized carbon credits market investors for failing to fund clean energy projects in Africa “The World bank urges CO2 markets to invest in Africa.”
Many investors believe that the risk of investment in some African countries is too high and the carbon credits only offset a small portion of the risk, especially when considering the high capital costs on wind and solar energy projects.
However, this may not be the case with the De Beers / GSPI franchising of biodiesel plants in South Africa.
The carbon credit trading allowances versus capital costs are significantly better for the De Beers project and would offer a greater hedge on capital investment than other clean energy projects.
This situation occurs because of two factors:
1) Capital costs are significantly reduced due to the franchising business strategy
2) Capital costs are further reduced due to the design and engineering that incorporates an efficient continuous process with advanced engineering simplicity.
“The market is still very much in its infancy and while South Africa is ripe for it few have taken the plunge” (Reuters February 2005).
De Beers has already received financial commitments to build 90 biodiesel plants each at 10 million gallons per year capacity that would initially use sunflower seed oil as feedstock but would switch to algae as soon as possible (see GSPI Press Release dated Nov. 13, 2006 at GreenStarUSA.com).
The ability to create projects in developing countries that generate carbon credits was established under the Kyoto Protocol (Treaty), which has been ratified by 165 nations to reduce the emissions of greenhouse gases that cause Climate Change (Global Warming). Each project must be registered and approved before receiving accreditation.
The U.N Secretary General Kofi Annan recently stated at the U.N. Climate Change Conference “Climate change is not just an environmental issue, as too many people still believe. It is an all-encompassing threat.”
Mr. Annan went on to say “This is not science fiction. These are plausible scenarios, based on clear and rigorous scientific modeling. A few diehard skeptics continue to deny global warming is taking place and try to sow doubt. They should be seen for what they are: out of step, out of arguments and out of time.”
Mr. Annan further stated, “Spurred by the Kyoto Protocol, international carbon finance flows to developing countries could reach $100 billion per year.”
GSPI and its Consortium are proud to be part of this De Beers Fuel Limited Team in South Africa and has already set up operations at its 90,000 sq. ft. Facility 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.
For more information on De Beers Fuel Ltd, visit their website at www.infinitibiodiesel.com or e-mail info@infinitibiodiesel.com.
Green Star Products, Inc. (OTC: GSPI) 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.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.
CONTACT:
Joseph LaStella, President
Green Star Products, Inc. Chula Vista, Calif.
619-864-4010 / 619-789-4743 (fax) / info@GreenStarUSA.com
Last Updated: December 7, 2006
