NEW YORK -- GS AgriFuels Corporation recently acquired a 14.3-percent stake in Missoula, Mont.-based Sustainable Systems Inc., an agricultural company focused on high-value culinary oil, biobased fuels, and bioproducts.

Sustainable has initiated an expansion of its oilseed crush facility in Culbertson, Mont., (the "Montola" facility). This facility is expected to double its current oilseed processing capacity to 600 tons per day after the expansion.

In addition to completing its investment in Sustainable, GS AgriFuels received a purchase order from Sustainable for a 10-million-gallon-per-year biodiesel system through its wholly-owned subsidiary, NextGen Fuel Inc. Fabrication of the NextGen biodiesel system is expected to begin later this year for co-location at Sustainable's Culbertson, Mont., oilseed crush plant.

The system, which is being manufactured by Warnecke Design in Van Wert, Ohio, is expected to operate using various vegetable oilseed crops that grow in the region of the existing crush plant.

The biodiesel system being purchased by Sustainable Systems represents NextGen's fifth customer order for equipment in the past 90 days -- in total representing 40 million gallons of annual production capacity.

GS AgriFuels was founded to produce and sell clean fuels from agriproducts in innovative ways. GS AgriFuels' business model is based on the manufacturing and sales of proprietary biodiesel equipment and the use of new technologies to produce biodiesel and ethanol from non-traditional feedstocks such as corn oil and cellulosic biomass through the utilization of several new proprietary technologies, including innovative desiccation, process intensification, gasification, catalytic, and carbon capture technologies, synergistically at small-scales to enable the refining of many forms of biomass into clean fuels at Integrated Multi-Fuel ("IMF") production facilities.

GS AgriFuels is majority owned by GreenShift Corporation, a company devoted to facilitating the efficient use of natural resources.

Sustainable Systems Inc. is an agricultural processor that currently produces high-value culinary oils and is positioned to capitalize on the emerging biodiesel industry. The company is executing on a significant opportunity within the expanding biodiesel fuel markets and its expanding food grade oil markets. Sustainable's business is to develop and operate oilseed crush facilities and bio-refineries that convert agricultural raw materials (predominantly oilseeds) into specialty food grade products and biodiesel fuel. In addition, Sustainable is commencing the projects of two additional oilseed extraction and biodiesel refineries at strategic locations within the United States.

NextGen's biodiesel process technology leverages innovative process intensification techniques to accelerate and enhance traditional biodiesel reaction kinetics, thus decreasing process time, reducing energy and raw material needs, and increasing product quality. These benefits reduce capital and operating costs by as much as 50 percent over traditional approaches, and NextGen's systems can be deployed to a plant in as quickly as 12-18 weeks. NextGen currently offers turn-key biodiesel production plants rated for 5 million gallons per year and 10 million gallons per year, but the modular and continuous-flow aspects of the technology make scaling plants up or down easy and cost-effective.

SOURCE: GS AgriFuels Corporation via Business Wire.