Growth Stock Watch

Green Star Products sent out a press release today announcing praising Governor Schwarzenegger for signing a law allowing biodiesel use for public agencies.

American Biofuels (ABF), a biodiesel producing company which is 35% owned by Green Star Products, Inc. (OTC:GSPI), has been working with the California Energy Commission for some time now to establish production and usage criteria for the State of California.

American Biofuels has foreseen the probability that the State of California would commit to the use of biodiesel and anticipated a commitment by the Governor’s Office for the use of biodiesel in the state.

On September 30, 2005, Central Valley Business Times (CentralValleyBusinessTimes.com) reported, “Bakersfield is the location of a major biodiesel plant. In July, American Biofuels said it was expanding its biodiesel production facility in Bakersfield to an annual production capacity of 10 million gallons. Expansion is expected to be finished by the end of the year.”
-from Green Star Products Press Release

I own shares of this company, and the press release had a few interesting points that I had not previously known.

1. According to the press release, “American Biofuels (GSPI owns 35% of this biodiesel company) has been a member of the National Biodiesel Board (NBB) since 2001 and in the same year received its registration for three EPA certificates for its biodiesel fuel and fuel additives. ABF was also approved to participate in the US Department of Agriculture (USDA) Bioenergy Program (http://www.fsa.usda.gov/daco/bio_daco.htm), which pays producers cash incentives for biodiesel production.”
2. According to the press release, “In 2004, ABF was listed on the USDA Bioenergy Program website as the 8th largest producer of biodiesel in the U.S. and the largest producer on the West Coast.”