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Green Star Products to Construct Total Bio-Refineries

Green Star Products to Construct Total Bio-Refineries

Published 05-15-06

Submitted by Green Star Products, Inc

SAN DIEGO--(BUSINESS WIRE)--May 15, 2006--Green Star Products, Inc. (OTC:GSPI) (Website: GreenStarUSA.com) announced today its plans to construct total Bio-Refinery Complexes for production of both biodiesel and biomass ethanol at each facility.

The first Bio-Refinery is planned to be in North Carolina (see GSPI press release dated April 20, 2006) and the location of the second facility is to be announced soon in the northwestern sector of the United States.

Each GSPI-designed Bio-Refinery will have a start-up production of between 10 or 20 million gallons per year with quick expansion capabilities. The facility infrastructure will be capable of expanding to 60 million gallons per year (and further expansion capabilities could reach 100-million gallons per year), ranking them among the largest fuel production facilities in the world.

The GSPI Bio-Refinery facilities, which incorporate joint production operations of both biodiesel and biomass ethanol, will be the first of their kind in North America and possibly the world.

The GSPI sustainable business model has long incorporated farming promotion, green engineering, biomass waste management and ethanol production concepts in all of its biodiesel projects.

The Bio-Refinery Complex would fully integrate both a biodiesel processing plant and biomass ethanol processing plant to optimize engineering strategy and cost reduction through planned synergic processing.

GSPI Combined Bio-Refinery key advantages follow:

1) Ethanol plants operate at high temperatures above 1,200 F, while biodiesel plants require low temperatures below 240 F. Therefore, the waste heat from the ethanol plant is enough to run the biodiesel plant at almost no heat processing cost.

2) GSPI Biodiesel and Ethanol plants can utilize the same laboratories, QC facilities, maintenance equipment and personnel. They can also share dispatch operations and management personnel.

3) One of the greatest advantages for the Bio-Refinery is the fact that domestically produced vegetable oil (soy oil, canola oil, etc.) will be used to make biodiesel and the waste products from the plants (stalks, etc.) can produce low cost ethanol. Ethanol produced from waste products could be produced for around one dollar per gallon.

4) Also, since the biodiesel production process requires approximately 10% methanol and since much of the methanol in the U.S. is presently supplied from outside of the U.S. borders, there could be a time when supplies could be cut short. The Bio-Refinery would simply switch over and use part of its own supply of ethanol, which works just as well as methanol. This would insure that the Bio-Refinery is always in operation backed by the output of the U.S. farmer.

"The American farmers will be the backbone of the sustainable fuel industry. Therefore, they are major role players in weaning the U.S.
off of imported oil," said Joseph LaStella, President of GSPI.

Mr. LaStella further stated, "The U.S. uses 25% of the total world output of crude oil each day but only has 2% of the known world oil reserves within its borders, making the U.S. almost completely dependent on imported petroleum. We can only break this vicious cycle by reducing consumption, supporting energy efficiency and promoting the use of true alternatives to petroleum like biodiesel and ethanol."

The above facts clearly demonstrate how critical it is for us to support American farming in producing biodiesel and ethanol feedstock source crops. Just now, the U.S. Congress is seeing the need to increase federal support for the farm and industry to produce much more domestic alternative fuels.

On May 11, 2006, the House Democrats unveiled a comprehensive biodiesel energy package to energize policy makers to fund the nation's energy independence with alternative fuels. House Representative Leader Nancy Pelosi stated, "The energy challenges facing our nation are real, but Americans are ready to meet the challenge. The answer is right here at home. From corn in the Midwest, to soybeans in North Carolina, to sugar beets in Minnesota, we grow the crops that can be converted into the biofuels that power our cars. It is good for the environment, good for our economy, and it is good for our farmers."

The House Democrats report includes the following proposed
programs:

1) Increase production of American-made biofuels to double the percentage of renewable fuels now sold in America in six years; and to make sure that biodiesel and cellulosic sources, such as switch grass, are a key part of that increase.

2) Expand the market for and distribution of biofuels.

3) Encourage local domestic ownership by providing federal incentives to smaller ethanol and biofuel plants, so that independent, locally-owned facilities that produce biofuels can grow and thrive, improving our rural communities.

Mr. LaStella also stated, "The growth of alternative fuels are not only expanding in the U.S. but also around the world. GSPI has been approached by many organizations in foreign countries to utilize its Bio-Refinery engineering expertise to build plants abroad."

Green Star Products, Inc. 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 is 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' Website at GreenStarUSA.com, or email info@GreenStarUSA.com, or call Investor Relations at 619-864-4010, or fax 619-789-4743. Information about trading prices and volume can be obtained at several Internet sites, including Bloomberg.com and 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.


Copyright Business Wire 2006

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Green Star Products, Inc

Green Star Products, Inc

Green Star Products, Inc. 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.

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