HOUSTON, July 31, 2019 /PRNewswire/ -- Global Clean Energy, Inc. (OTC PINK: GCEI). For the last 4 years, the staff at Global Clean has been working to provide the company with operations that will be both profitable and not put the shareholders at risk. The waste to fuels projects have been time consuming and capital intensive to bring to market, yet the company has not given up on making those efforts happen.
After years of research, expense and work, the Algae REIT project is coming to completion. The original research in algae was focused on trying to find the best feedstock for biofuels. Management reviewed numerous types from palm oil to jatropha to animal waste. The company concluded that the profit margins at this point are slim and would require tremendous infrastructure.
Algae farming is becoming more efficient, and what the company found, more importantly, is that algae applications and the marketplace for algae is booming. The projection for algae sales in the United States by the year 2023 will be in excess of $5.17 billion, with worldwide sales estimated to reach $45 billion.
Forecasts of population growth into the year 2040 are estimated to reach 10 billion people. This means the world must increase its food production by 70% as well as doubling our energy supplies. Each and every application of algae usage increases food, crop and animal production by 5 fold. We now have new market niches for feeding the world by using the world's oldest living oil source, ALGAE.
The company was confronted with two major roadblocks to include the raising capital and operating systems to produce the highest quality and varied algae feedstock applications.
The issue of raising capital was solved by utilizing the REIT (Real Estate Investment Trust) vehicle. Our projections show a 32% return on capital to the Algae REIT vs. the national average in a REIT of 8%. Further, GCEI will be the managing general partner. The company is able to utilize the REIT structure because the production system for algae will be fully enclosed and under cover.
After two years of research, which included visits to algae operations, there is no doubt that algae has to be grown and harvested in a contained environment. Additionally, with the passage of the 2018 Farm Bill, algae is now recognized as a crop.
The company has selected three separate 10+ acre sites located in NW Houston. These locations will be as close to a 0 carbon footprint as possible. Electricity will be supplied by solar panels, which have seen algae become an integral part of the new generation of panels. Water will be fully recycled and waste water will be utilized. The only carbon foot print will be the trucks that are necessary to ship to market, and it is hoped that at sometime in the near future, those vehicles will be using biofuels produced from our algae.
The first two applications for sale of algae will be for fertilizer and feedstock for livestock. Properly handled by the end user, the meats from the livestock will qualify as ORGANIC. The research shows that cattle which are fed algae products grow nearly 3 times more rapidly and milk production is substantially raised. Likewise, crop growth is far superior to non-organic fertilizers.
The company has structured a $50,000,000 REIT Offering of which 10% of the targeted properties will be devoted to research of new strains and applications of algae. The company will announce the completion of the pending financing in the near future.
Statements in this release may be regarded, in certain instances, as "forward-looking statements" pursuant to certain sections of the Securities Act 1933 and the Securities Exchange Act 1934, respectively. "Forward-looking statements" are based on expectations, estimates and projections at the time the statements are made, and involve risks and uncertainties, which could cause actual results or events to differ materially from those currently anticipated, including, but not limited to delays, difficulties, changed strategies, or unanticipated factors or circumstances affecting Global Clean Energy, Inc. and its business. There can be no assurance that such forward-looking statements will ever prove to be accurate and readers should not place undue reliance on any such forward-looking statements contained herein. Global Clean Energy, Inc. will not republish revised forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.