MARIETTA, Ga., Dec. 3, 2012 (GLOBE NEWSWIRE) -- VIASPACE Green Energy Inc. (OTCBB:VGREF), the leading provider of Giant King™ Grass (GKG), an extremely high-yield, renewable energy crop, today provides its shareholders a business update.
As previously stated on October 16, 2012, VIASPACE Green Energy (VGREF) signed its first supply contract for GKG pellets (http://www.viaspacegreenenergy.com/newsreview.php?id=66&type=pr). The company continues to produce and deliver GKG pellets to its customer. The pellet manufacturing process has gone smoothly and management is working on a few issues to increase manufacturing efficiency. Reaching optimal efficiency is important to maximizing the company's profit margin in pellets. Mr. Sung Chang, VGREF President, stated, "We are leaders in this young industry so reaching our optimal efficiency will take some experimentation. However, improving our production efficiency will benefit us in the long run. This does not keep us from continuing to run our production line on a daily basis though."
In anticipation of the increasing demand for pellets in China, management has been searching for more land to grow GKG and build more pellet mills. The company is looking to expand its capacity in order to fulfill the Chinese market's increasing demand. Management has continued to receive many inquiries and requests for its GKG pellets and foresees a large shortage of pellets in the future.
Chang has met with several potential customers over the past few months, and the consensus among these customers and experts is that Chinese businesses and consumers are going to need much more energy in the future, but at the same time, the Chinese government will set aggressive carbon intensity targets and levy a carbon tax. China is implementing its pilot carbon-trading system in seven regions in 2014 which will later lead to a nationwide implementation of its carbon-trading system. Chang commented, "In addition to the increasing demand for energy, there are many other reasons that make China the most attractive market for renewable energy. The Chinese government is aiming to reduce its carbon emissions per unit of GDP even as its massive population becomes wealthier and demands more energy. Experts say the government is looking towards renewable energy in order to achieve its ambitious goals, and VGREF wants to be a leader in providing sustainable energy."
The company is also announcing that it has ceased production of its Green Log™ fireplace and campfire logs. Due to increasing raw material costs, shipping costs, and decreasing retail prices, management decided to focus its resources toward the pellet and energy markets. The company now uses the former Green Log equipment and machinery to produce pellets, after a retooling and optimizing process was completed. Chang remarked, "When the company decided to produce fire logs, the market was extremely attractive with high profit margins, but the raw materials used to manufacture Green Logs, other than GKG, began to significantly increase in price. Since fire logs and pellets are similar to manufacture, we decided to use the Green Log equipment to make pellets since the pellet market is larger and more profitable."
About VIASPACE Green Energy Inc.
VGREF 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.