VIASPACE Inc. and its subsidiary VIASPACE Green Energy Inc. (OTCBB: VGREF) today announced that VIASPACE and General Biofuels have entered into a Memorandum of Understanding to develop a large Giant King Grass Plantation and a 250,000 to 400,000 tonne per year biomass pellet plant in the Dominican Republic.

In discussions for nine months, VIASPACE and General Biofuels have presented the project to large potential customers in Europe. One potential customer has already tested Giant King Grass.

General Biofuels has agreed to act as the lead developer and operator; procure land, obtain debt and equity financing, engineering, procurement and construction (EPC) contracts, and credit enhancements. VIASPACE, on the other hand, will provide source material, and nursery and plantation development for the Giant King Grass.

General Biofuels Chairman Ruby Sahiwal stated, “We believe that our joint venture with VIASPACE will lead to the lowest cost energy pellets in the industry. With the high yield of Giant King Grass, we can deliver sustainably grown energy pellets at the same or lower price than current wood waste pellets. We are beginning our partnership with VIASPACE in the Dominican Republic, but looking to expand in other areas of the globe.”

According to the press release, the current market price for wood pellets is $170 per ton delivered to Rotterdam, Netherlands.

The Times of India recently reported in an interview with General Biofuels Chief Agriculture Officer Mr. Amrik Singh Gill — “Indians are now looking for investment opportunities in the cultivation of Giant King Grass (GKG), a non-food dedicated energy crop that can be grown on marginal lands which are not used for growing food crops. Crops like maize, sugarcane etc. were used for producing green energy, but due to worldwide protests against a possible food scarcity following use of food crops for producing energy, people were now looking for investment opportunities in growing Giant King Grass especially in the countries with highly tropical conditions . . . He informed that GKG was viewed as the fastest growing crop which provided large volume of biomass. ‘One hectare of land produces 350 tons of green biomass which is an important source of renewable energy’ . . . Amrik Singh said that his company’s pilot project was also on and they would start producing green energy in next two years time.”

VIASPACE’s CEO Dr. Carl Kukkonen plans to visit India in April to meet potential customers, and will present Giant King Grass test results at the World Renewable Energy Technology Congress to be held April 21-23, 2011 in New Delhi.

Giant King Grass is a high-energy, low carbon fuel for electricity generating power plants, and an excellent feedstock for production of clean biomethane and liquid biofuels such as cellulosic ethanol, butanol and green gasoline.

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