CITY OF INDUSTRY, CA--(Marketwired - Aug 8, 2016) - Earth Gen-BioFuel (
George Shen, President, commented, "EarthGen believes that the best way to expand the market for castor beans beyond the $2.5 billion of castor beans used in chemical manufacturing is to accelerate the use of castor bean oil as a clean transportation fuel. It is time to stop using food grade seed oils as fuel at a time when high quality cooking oil is in short supply in many countries."
EarthGen plans to expand its own Castor Bean farming beyond its Laos operation to develop and diversify its growing locations and harvesting dates. In addition to working with the Singapore based consulting group Gionesis, the company has been working with farm operations in Vietnam, Cambodia, Peru and Mexico. Other counties that are of interest are Indonesia and Colombia. Based on the potential growth in uses of castor beans, EarthGen is planning a series of 2500-acre farms in these additional countries. Each farm when fully planted will have the potential to produce about $3,000,000 in castor bean sales per year. Castor plants have a productive life of 5 to 7 years and should produce a repeating annual revenue stream, which can be used for additional planting and further expansion of operations.
The US has been using about $8 billion of soybean oil as a biofuel feed stock or about 4 times the world production of castor beans. Castor beans are a better biodiesel feed stock because castor beans have an oil content of 50 percent and a relatively high crop yield of 1,695 pounds per acre, which means that castor beans can supply up to 141 gallons of castor oil per acre. That compares to 50 to 60 gallons oil per acre for soybeans.
Currently the use of castor oil in manufacturing biodiesel is still very limited. However, we believe that this market segment has significant growth potential. The driving forces for the growth of biodiesel in general is the projected long term rising cost of fuel and environmental concerns, both driving the use of cleaner fuels and the fact that newly manufactured trucks and farm equipment in the U.S. do not require modification of their engines in order to utilize Clean Fuel B20 (20% vegetable oil and 80% petroleum diesel) and in some cases 100% processed vegetable oil.
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 included 600-acres of Castor Bean farms in Laos. The Company plans to expand company owned operations to 4,000 acres over the next two-years and 10,000 acres of farm partnerships, 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 in predicting expansion rates and harvest rates and the availability of capital to support expansion. Other risks include but are limited to 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.