NEW YORK -- GS AgriFuels Corporation plans to build an integrated multi-feedstock, multi-fuels production facility in Memphis.



GS AgriFuels has executed several of the agreements necessary to develop its Memphis site and expects to begin construction of the Memphis facility later this year.



"We strongly believe in the potential of renewable fuels, but our view is that the domestic clean fuels industry faces significant challenges over the coming years," said Kevin Kreisler, GS AgriFuels' chairman and CEO. "Among other challenges, the biodiesel sector faces high concentrations of risk in the soy markets and the corn-derived ethanol sector is facing both increasing corn prices and decreasing distillers dried grains prices. Our belief is that these risks can be mitigated with feedstock diversification and with the use of proprietary new technologies and production improvements. Our business model incorporates elements of each."



GS AgriFuels intends to use standard fuel production technologies and a number of proprietary technologies, including innovative pre-treatment, process intensification, gasification, catalytic, and carbon capture technologies, synergistically at small-scales to enable the refining of many forms of biomass into clean fuels, including biodiesel and ethanol.



"Our development plans are based on the premise that feedstock diversification and integrated multi-fuel production capability at relatively small-scales will allow us to hedge risk and proactively manage fluctuating market conditions in opportunistic ways," added Kreisler. "We are designing our facilities around this philosophy."



GS AgriFuels is currently developing several sites for the construction of its planned integrated multi-fuel production facilities. GS AgriFuels' planned Memphis facility will have an initial nameplate capacity of 10 million gallons of biodiesel and 5 million gallons of ethanol, methanol and/or biomass-derived synthetic diesel and will commence production in 2007.



GS AgriFuels expects to scale its Memphis, Tennessee facility to in excess of 45 million gallons of annual fuel production given that facility's location in a major distribution hub. Additional information on GS AgriFuels' development plans is available online at



GS AgriFuels Corporation was founded to produce and sell clean fuels from agriproducts in innovative new ways that allow producers of agriproducts, their local communities and consumers to save money, reduce pollution and contribute to energy independence.



GS AgriFuels intends to build a large number of clean fuel production facilities in America under its Mean Green BioFuels brand. GS AgriFuels' chief ambition is to get cleaner, greener burning fuels grown in the U.S.A. in as many engines as possible, as quickly as possible.



SOURCE: GS AgriFuels Corporation via Business Wire.