MARIETTA, Ga., Oct. 16, 2012 (GLOBE NEWSWIRE) -- VIASPACE Green Energy Inc. (OTCQB:VGREF) today announced that it has signed a five-year contract to supply Giant King™ Grass (GKG) pellets to a home furniture manufacturer located in the Guangdong Province of China. This will be VIASPACE Green Energy's first supply contract for its pellets. The customer will burn the GKG pellets in its boiler, which currently requires over 2,000 metric tons of fuel per month, for generating heat and energy to be used in its manufacturing process.
VIASPACE Green Energy (VGE) anticipates supplying at least 12,000 metric tons of pellets per year to this specific customer which is expected to generate approximately $7.5 million in revenue over the term of the contract. The company will begin delivering pellets immediately which will result in fourth-quarter revenues from pellet sales.
Mr. Sung Chang, President of VGE, stated: "This is a significant achievement for VIASPACE Green Energy. The company's first pellet customer is extremely important because it will allow us to prove that VGE can consistently manufacture high-quality pellets at an attractive price to our customers by taking advantage of Giant King Grass' high growth yields. This contract also serves as a proof of concept for our potential customers, and we expect this to create a positive and proven reputation for Giant King Grass and VGE. Most importantly, our shareholders should be able to see the company realize revenue from pellets within 2012. We have seen the pellet market in China continue to grow, and we have had discussions with several large corporations that need over 250,000 tons of pellets per year for their operations. As a result, we have been looking to expand our operations and are currently in discussions with multiple municipalities in China to acquire more land."
Previously, on October 3, 2012, the VGE Board of Directors and Management announced that the orderly separation of VGE and VIASPACE Inc. (VIASPACE) had been completed and formal documents signed by VGE, VIASPACE and Mr. Sung Chang. As part of the separation agreement, VGE has the right to commercially develop Giant King Grass in China and Taiwan, and VIASPACE has been granted an exclusive license to commercialize Giant King Grass in the rest of the world outside China and Taiwan. The exclusive license that VIASPACE obtained from VGE has revenue milestones that need to be met every two years in order to maintain the license from VGE. VIASPACE will pay VGE an 8% royalty on net sales derived. The entire press release can be viewed at http://www.viaspacegreenenergy.com/newsreview.php?id=65&type=pr
About VIASPACE Green Energy Inc.
VGE is a clean energy company providing products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil and high-pollutant energy sources. The Company grows Giant King Grass as a low-carbon fuel for electricity generating power plants, as a feedstock for bio methane production and cellulosic biofuels, and for other low-carbon, renewable energy products. The Company also has a business unit that manufactures quality framed art for retailers around the world. For more information, please go to www.VIASPACEGreenEnergy.com, email to IR@VGREF.com or call (678) 805-7472.
Safe Harbor Statement
Information in this news release includes forward-looking statements. These forward-looking statements relate to future events or future performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Such factors include, without limitation, risks outlined in our periodic filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K for the year ended December 31, 2011, as well as general economic and business conditions; the ability to acquire and develop specific products and technologies; changes in consumer and business demand for the Company's products; competition from larger companies; changes in demand for alternative and clean energy; risks associated with international transactions; risks related to technological change; and other factors over which VIASPACE Green Energy has little or no control.
CONTACT: Investor Relations Contact Jason Chang (678) 805-7472 IR@VGREF.comSource:VIASPACE Green Energy Inc.