July 28, 2008
Global Energy Sucessfully Completes First Stage of Castor Oil Energy Project in Ethiopia
Global Energy (OTCBB:GEYI), an alternative energy innovator, announced today that its subsidiary, Global Energy Ethiopia (GEE), has successfully completed sowing 5,000 hectares of Chinese hybrid castor seeds for its alternative energy project in Ethiopia. The project entails planting and harvesting castor for the production of non-edible oil for the bio-diesel industry and for other uses.
Castor is a plant with an oil content ranging from 46-53%.The castor farming initiative is located in southern Ethiopia, approximately 350 km south of the capital of Addis Ababa. Just six months after launching the project, some 90% of the land has reached a germination stage of over 96%
GEE expects to commence harvesting in approximately three weeks and for the harvesting to continue for a period of five months. GEE will also open a peeling center in the town of Sodo, the capital of the country's northern zone.
Recently, GEE signed a rental agreement for a 10,000 square meter facility in Sodo to house the peeling center. The agreement is set for 15 years, with an option of extending to 35. This center will have the capacity to process over 25,000 tons of castor plant fruit.
The agreement includes the establishment of a 3,000 square meter closed storage facility. In addition, generators and peeling machines have been purchased in order to aid with the advancement of the project. The total cost of the center (including equipment), is estimated at $250,000, and the completion of the project will be finished within 60 days of the start of its implementation. The facility will have the storage capacity to hold 3,000 tons of seed and 450 tons of castor plant fruit per day.
"Global Energy continues to explore new methods to produce environmentally friendly, efficient and cost-effective energy solutions," stated Asi Shalgi, CEO of Global Energy. "The Ethiopian project not only represents a new and important piece of our puzzle, but it also allows us to significantly boost the local economy of an area in desperate need of help. I am pleased at the results we are announcing today and am looking forward to continued success for our company, for the local farmers and for the environment as a whole."
In order to coordinate the complicated logistics of the project, GEE has developed a significant infrastructure for an agricultural cooperative in the Ethiopian regions of Waletia and Goma Gofa. GEE's operations offices, located near the peeling center, includes a logistics department, computer operations and a staff of trained agricultural supervisors.
GEE is concurrently conducting a research and development program to achieve new species of castor to improve future yields and intends to conduct studies in eight experimental sites simulating a variety of conditions. Additionally, GEE's agronomists are training hundreds of local personnel to operate and facilitate the entire planting through production process.
About Global Energy
Global Energy's (www.global-energy.net) mission is to commercialize innovative technologies which produce energy from waste and renewable sources, while contributing to a vision of a cleaner environment. Global Energy intends to use the most efficient and environmentally friendly of all currently available alternative fuel technologies, each originally developed and patented by acclaimed scientists.
Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among others, that GEE plans to commence harvesting in three weeks and for harvesting to continue for a period of five months; that it plans to open a peeling center in the town of Sodo in Ethiopia; that the center will have the capacity to process over 25,000 tons of castor plant fruit; that the total cost of the center is estimated at $250,000; that the completion of the project will be finished within 60 days of the start of its implementation; that the facility will have the storage facility to hold 3,000 tons of seed and 450 tons of castor plant fruit per day; and that GEE intends to conduct studies in eight experimental sites simulating a variety of conditions.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (i) the inherent uncertainties and speculative nature associated with biofuels and alternative fuel sources; (ii) potential environmental liabilities, weather, mechanical failures, safety concerns, labor problems and financing problems; (iii) changes in economic conditions, adverse exchange rates and financial markets; (iv) the risk that we are not able to execute our business plan, such as entering agreements with strategic partners, leasing land, obtaining loans, etc; (v) the inability to retain key employees; (vi) changes in energy prices and the high cost of alternative fuels; (vii) Global Energy's inability to finance its operations or growth; (viii) the inability to obtain all necessary government, environmental and regulatory approvals; (ix) an increase in competition in the biofuel and alternative fuel market; and (x) the possibility that our technology does not work as well as expected. Investors should consider all of these risks and should also refer to the risk factors disclosed on the SEC filings of Global Energy.