Green Star Acquires Super Ethanol Plants- Continues Its Acquisition Program
SAN DIEGO--Nov. 5, 2002--Green Star Products Inc. (OTC:GSPI), formerly OTC:BAAT -- BAT International, announced today that it has purchased a 60 percent interest in two new commercial size "super ethanol" plants from Millennium Fuels USA.The facilities are located in the State of Kentucky. The purchase agreement also includes the acquisition of 100 percent of the intellectual property to produce "super ethanol".
"Super ethanol" is covered by three patents that describe the process to form a new blend that increases ethanol octane. Presently, California is resisting the introduction of ethanol into gasoline, which has caused conflict between the Federal government and the state of California.
GSPI's "super ethanol" has a much higher octane rating than regular ethanol, this would allow for a wider acceptance of ethanol by the consumer by reducing the percentage requirement in gasoline blends by 30 percent.
GSPI's two new "super ethanol" plants each have a production capacity of 30,000 gallons per day and have recently been modified to meet OSHA and API insurance requirements. One facility is 9 percent owned by the Sumerset refinery where it is located. The ethanol plants use a platinum catalyst and are designed to operate at a pressure of 500 psi and a temperature of 275 deg F. The plants have a combined book value of over four million dollars but shall be booked at a lower basis on GSPI's financial statements.
The plants and intellectual property were purchased by GSPI for a combined financial package that includes two million shares of GSPI stock, a four million dollar net profit royalty at five percent, the completion of phase two of the "super ethanol" processing program at Southwest Research Institute and a two percent net profit continued royalty after the initial five percent royalty is completed.
Both plants have been designed with a dual operating function that also allows them to be used to upgrade low octane gasoline to a consumer grade.
GSPI has received inquiries from two other refinery companies who have an interest to lease these plants to upgrade low octane gasoline.
GSPI is presently negotiating to lease one of the plants to another refinery to increase GSPI's revenue while the other plant awaits the completion of the "super ethanol" processing test program.
GSPI has been involved in renewable fuels for many years. GSPI's long-term acquisition program is designed to trade its engineering expertise, proprietary knowledge and publicly traded stock in exchange for hard asset plant production capacity to produce biodiesel and ethanol products.
GSPI also purchased a 35 percent interest in American Bio-Fuels in August of this year (see press release dated July 23, 2002).
American Bio-Fuels is a member of the National Biodiesel Board and presently has the only continuous flow production plant in the United States to produce EPA (ASTM) specification grade biodiesel.
Presently, there is a tremendous effort in the U.S. and internationally to move away from the unstable petroleum fuel market and toward renewable domestically produced biofuels e.g. a sustainable development economy.
The Energy Bill and the Farm Bill now being drafted by Congress contain many incentives to expand biofuel production and use in the USA. Both bills are receiving bi-partisan support.
The cost of petroleum fuels has been increasing and the cost of biofuel production has been decreasing due to technology advances and economies of scale in production.
The other advantages of using biofuels include:
1. Puts American farmers to work
2. Creates new production jobs and a new industry
3. Insurance against oil embargoes
4. Reduces life cycle CO2 by 78 percent
5. Reduces dependency on foreign oil
6. It's a renewable energy source
7. Reduces hydrocarbon and carbon monoxide emissions
8. Reduces particulate emissions and smoke
9. Has higher cetane and octane values
10. Has no sulfur
11. Quality is assured by ASTM standards
It is interesting to note that the diesel engine, which was invented by Rudolf Diesel, was designed to operate on renewable vegetable oils and not petroleum diesel. The way industry is being fueled is now changing and will continue to change as petroleum fuels run out.
Green Star Products Inc. is organized as a holding company with major ownership positions in a set of subsidiary companies now commercializing advanced automotive and energy technology products. For more information, see GSPI's Web site at http://www.baat.com or call Investor Relations 619/409-8977, 619/409-9598 Fax, or email info@baat.com. Information about trading prices and volume can be obtained at several Internet sites including http://www.bloomberg.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.
