CITY OF INDUSTRY, CA--(Marketwired - May 5, 2016) - Earth Gen-BioFuel (
George Shen, Chairman, stated, "The ever-expanding end uses of castor oil and its derivatives make it imperative that world Castor Bean production be increased. During our operational planning for 2016 and 2017, I have toured our area of operations in Laos and received reports from our agricultural advisors in Singapore, China, and South America. We have confirmed reports that the demand for Castor Beans and Castor Bean derivative products exceeds current production by a wide margin. These facts and EarthGen's goal of becoming one of the largest US based growers of Castor Beans is the basis for the Company's expansion goals."
Our operating plans call for starting Castor Bean operations in South America and in the US. Plans also include adding 4,000 acres of Castor Bean farms in Laos over the next two years. It is estimated that 4,000 acres of new farms are capable of producing 8,500 tons of castor beans annually that could produce annual sales of approximately $4,500,000 based on today's world market prices. The planting schedules are subject to finalizing land use rights in these areas and obtaining additional working capital.
In the recent April 2016 report published by Castor Oil Reports, they noted that Castor oil is possibly the plant oil industry's most underappreciated asset. It was also reported that Castor Beans are one of the most versatile of plant oils. It is used in over ten diverse industries and is the starting material for producing of over 700 end products. New applications of castor oil are being explored in areas such as pharmaceuticals and biopolymers / bioplastics. The reported concludes that these end user markets for castor oil and its derivatives are expected to expand significantly over the next few years.
Castor Oil Report also points out that uses of castor oil have changed over the years. Many years ago, castor oil was primarily used for medicinal purposes and as a general industrial lubricant. Today, chemical engineers have come up with many uses of castor oil and its derivatives such as: Polyamide 11 (Nylon 11 fibers are use in the very large carpet manufacturing industry) engineering plastics for heat tolerant automotive and air plane parts, lubricating grease, coatings, inks, sealant, aircraft lubricants, surfactants, emulsifiers, encapsulants, plastic films, plasticizer for coatings, and components for shatterproof safety glass. Castor oil has even made its way into cosmetics and related products.
Even as more uses for castor oil emerge, EarthGen believes that demand for castor oil will be most affected by its use as "clean fuel" biodiesel. One example of this is cited in studies done by Evogene Ltd., an Israeli based agricultural hybrid seed-company. The report of tests in Brazil for biodiesel and biojet fuel production utilizing Castor Beans found castor beans to be an effective drought tolerant and high oil yielding crop.
Expanding use of Castor Bean Oil and the results of Evogene's tests, confirm that Castor Beans are an ideal "Clean Biodiesel" feedstock and are some of the reasons why Earth Gen is accelerating plans for Castor Bean farming in California by utilizing non-farm land to cultivate a high value drought tolerant Castor Bean crop.
US demand for castor bean oil is reported to exceed supply by approximately 100,000 tons or about $120 million. Castor Bean oil demand in the European Economic Community is reported to exceed demand by 500,000 tons or about $500 million. China demand is reported to exceed supply by 1,200,000 tons or about $1.3 billion. Brazil (a leader in bio-fuel utilization) reported castor bean oil demand of 300,000 tons more than supply or about $300 million. It is the same in other regions of the world such as Japan, Thailand, and India where Castor Bean oil demand is reported to exceed supply by over 1,000,000 tons.
These demand figures are for using Castor Bean oil for manufacturing and not the expected future demand for use as "clean biodiesel." EarthGen believes that based on import demands from the major industrial countries and the need of chemical manufacturing for Castor Bean oil as a feedstock, that the market demand for Castor Beans already greatly exceeds current production.
Earth Gen-Biofuel Inc., a U.S. based international agribusiness company is cultivating Castor Bean farms in Southeast Asia. Castor Beans are a renewable resource as a non-food agricultural product used in manufacturing clean transportation fuel, and utilized in over 700 manufacturing processes. EarthGen's goal is to become one of the world's largest growers of Castor Beans. Our first operation includes 600-acres of Castor Bean farms in Laos, with a full-scale harvest scheduled for year-end 2016. The Company plans to expand Southeast Asia operations to 4,000 acres over the next two-years, which is expected to make Earth Gen one the largest operators in the area. Worldwide demand continues to grow, due to high demand for manufactured products using Castor Bean oil and the crops value as a renewable "energy crop."
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.