Bakersfield Newspaper Story Covers American Biofuels New Biodiesel Production Plant

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Bakersfield Newspaper Story Covers American Biofuels

New Biodiesel Production Plant

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Bakersfield Newspaper Story Covers American Biofuels

New Biodiesel Production Plant

BAKERSFIELD, CALIFORNIA, Jun. 23 -/E-Wire/-- American Biofuels (35% owned by Green Star Products OTC-GSPI) was the focus of a major biodiesel story published by the Bakersfield Californian newspaper on June 11, 2004.

The story included 2004 biodiesel production and distribution information from American Biofuels' Biodiesel Plant in Bakersfield and interviews with fuel distributors. The article also covered the political situation concerning US congressional support for the alternative fuel industry and interviews from the political arena.

The article states that, "Bakersfield has become a hub for the production of clean-burning, renewable biodiesel fuel. But you still can't buy it here."

"American Bio-Fuels began producing biodiesel from soybean oil in January. The fuel can be run in any diesel vehicle without modifications, producing nearly 70 percent less smog-forming hydrocarbon emissions."

"Also, because the fuel is made from domestically produced plant oils, supporters say it can help the nation achieve energy independence while supporting American farmers."

The article goes on to say that recent biodiesel production has ramped up to 50,000 gallons per month, which is 15% of the Bakersfield Biodiesel Plant's current capacity.

The article quoted Joe LaStella, President of GSPI, as saying, "We can't keep up with the demand, and all of it is going outside of Bakersfield." So far, fuel distributors in Ventura, Santa Cruz and Ukiah have all the Bakersfield supply locked up.

Mr. LaStella also said "there is ample interest in biodiesel in Bakersfield, home to some of the nation's worst air quality and toughest smog laws."

Farmers, for instance, could use biodiesel in their tractors and irrigation pumps to meet air-quality rules without modifying their engines at all. Federal rules also allow public fleet operators to meet clean-air rules by using biodiesel instead of buying expensive new vehicles.

But, LaStella said, "the company is caught in a bind by a combination of forces. The price of soybean oil, the company's primary raw material, has soared since the beginning of the year, driving up production costs."

Like all alternative-fuel producers, the company relies on USDA alternative fuel production incentive payments to help make biodiesel competitive with petroleum diesel. But LaStella said there is a delay of up to five months between actual production and payment from USDA. This makes it more difficult for the company to expand production.

One distributor of American Biofuel's biodiesel is also quoted in the article:

"They make a pretty good product," said Ted Brown, of T.W. Brown Oil Co. Inc., which sells Bakersfield biodiesel in Ventura. "I have customers waiting on me to get more. There's a demand for it, and it's increasing, even though the price has gone up."

The article goes on to say that in order to expand production to cover Bakersfield's biodiesel demands, American Biofuels may switch part of its production to a cheaper feedstock, namely used vegetable oils.

Eventually, the use of cheaper feedstocks in combination with plant oils will allow biodiesel to compete with regular petroleum diesel without any government support.

American Biofuels is now switching part of its plant's capacity to other feedstocks. American Biofuels has processed limited quantities of other feedstocks earlier this year. The production of large quantities of cheaper feedstock will require some plant expansion, which is now in progress. In the interim, the Bakersfield Biodiesel Plant will continue to supply soy-based biodiesel to its existing customers.

In conclusion, the Bakersfield article concentrated on political issues concerning our nation's commitment to support clean air, create new jobs, reduce global warming and move toward energy independence.

For the complete article visit the Green Star Products Web site (GreenStarUSA.com).

For more information please read a comprehensive editorial by Joe LaStella on Global Warming to be released later this week.

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. GSPI 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 GSPI's Web site at http://www.GreenStarUSA.com or call Investor Relations at [REDACTED-PHONE], or fax [REDACTED-PHONE], or email [REDACTED-EMAIL]. 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.

Green Star Products, Inc.

Chula Vista, CA 91911-1305

[REDACTED-EMAIL]

http://www.GreenStarUSA.com

http://www.bloomberg.com

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