WALNUT, Calif., Feb. 4, 2014 /PRNewswire/ -- VIASPACE Inc.
(OTCQB: VSPC) issued the following update on the Giant King Grass
project in Nicaragua.
VIASPACE previously announced that it has entered into a
contract with AGRICORP, the largest rice company in Nicaragua, and is growing Giant King Grass on
land owned by them. The Giant King Grass is growing well in
Nicaragua, and VIASPACE and
AGRICORP have agreed to form a partnership to build a 12 MW biomass
power plant fueled by Giant King
Grass.
In addition to the 12 MW biomass power plant partnership,
VIASPACE and AGRICORP have now decided to add animal feed as a
second focus to the overall business project in Nicaragua.
VIASPACE CEO, Dr. Carl Kukkonen,
visited Nicaragua last week. He
spent three days at the Giant King Grass growing site which is part
of the Miramontes rice plantation on Lake Nicaragua. The 10,000
acre plantation has approximately 6,000 acres planted in rice and
the remaining 4,000 acres are available for growing Giant King
Grass. The 12 MW power plant will require a 2,100 acre Giant King
Grass plantation. Irrigation is plentiful and is provided from Lake
Nicaragua to supplement the natural rainfall.
Giant King Grass was originally
planted in Nicaragua in
December 2012. It was first harvested
in May 2013, and another Giant King
Grass field was planted using material propagated from this first
harvest. Giant King Grass is not
grown from seed, but rather from cuttings similar to the way
sugarcane is propagated and planted.
The existing Giant King Grass is being harvested and an
additional 29 acres are being planted. The multiplication
efficiency of Giant King Grass is extremely high with 1 acre of
Giant King Grass able to produce enough cuttings to plant more than
100 new acres every six months.
Dr. Kukkonen reports, "I was there for the harvest, propagation
and planting. We are gathering valuable data on Giant King Grass
yield, propagation efficiency, and the time and cost required for
harvesting and planting. This data is important for the power
plant financial model, and for the planning of the full-scale
plantation, which must be ready four to six months before the power
plant is completed."
"The rice plantation operated by AGRICORP has more than 200
employees and a full range of equipment that we are able to
leverage. Two of their top agronomists are working with us on the
Giant King Grass plantation. We are pleased with the growth
and propagation of Giant King Grass and we are using part of the
new planting area for optimization of Giant King Grass cultivation
in Nicaragua to maximize yield and
reduce costs. Another portion of the new planting area is for
producing animal feed which will be a second line of business of
the Giant King Grass plantation. We will be harvesting Giant King
Grass for animal feed within 90 days and will initially be feeding
cattle on the plantation. We will be making green chop, silage and
hay. There are 5 million people in Nicaragua and 6 million cattle which
illustrates the demand for animal feed. Nicaraguan beef is famous
in the region. An animal nutritionist has joined the team. He is
designing the Total Mixed Ration (TMR) for the cattle. Because of
its high nutritional value, the Giant King Grass not only provides
fiber required by the cattle, it can replace a substantial amount
of expensive nutritional supplements in the ration which results in
a substantially lower overall cost."
VIASPACE Chairman, Dr. Kevin
Schewe, commented, "This is an important business step for
our partnership with AGRICORP in Nicaragua for several reasons. First, we are
creating a combined business model of using Giant King Grass for
animal feed in conjunction or parallel with the development of a
plantation to fuel a 12 MW biomass power plant. In other words,
this business model will generate animal feed revenues in the short
term while simultaneously providing Giant King Grass propagation
material to establish a biomass plantation that will in turn
generate biomass driven electricity revenues in the longer term. We
believe that this will be an attractive business model in many
parts of the world. Secondly, along with AGRICORP, we will be
actively generating animal feed data very quickly which will
provide valuable, practical parameters for the continued expansion
of our VIASPACE animal feed business line globally. Finally, by
working effectively with AGRICORP in Nicaragua, VIASPACE is establishing a positive
reputation in the Central America
region."
Dr. Kukkonen also held business meetings in Nicaragua and will provide an update on the
power plant in the near future.
Pictures from the plantation in Nicaragua are available on the VIASPACE
Facebook page www.facebook.com/viaspaceinc.
About VIASPACE Inc.
VIASPACE grows renewable Giant KingTM Grass as a
low-carbon fuel for clean electricity generation; for
environmentally friendly energy pellets; and as a feedstock for
bio-methane production and for green cellulosic biofuels,
biochemicals and biomaterials. Giant King
Grass is a proprietary, high yield, dedicated biomass clean
energy crop. Giant King Grass when
it is cut frequently at 4 to 5 feet tall is also excellent animal
feed. The USDA granted approval for planting Giant King Grass
throughout the US and cooperates in exporting by performing the
required inspections and issuing the phytosanitary certificate
needed for import into foreign countries. Giant King Grass is being grown in California, Arizona, Hawaii, St. Croix Virgin Islands, Nicaragua, South
Africa, China and
Myanmar. For more information, please go to www.VIASPACE.com
or contact Dr. Jan Vandersande,
Director of Communications, at 800-517-8050 or IR@VIASPACE.com.
Safe Harbor Statement
Information in this news release includes forward-looking
statements. These forward-looking statements relate to future
events or future performance and involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to be materially
different from those expressed or implied by these forward-looking
statements. Such factors include, without limitation, risks
outlined in our periodic filings with the U.S. Securities and
Exchange Commission, including Annual Report on Form 10-K for the
year ended December 31, 2012, and
other factors over which VIASPACE has little or no control.
SOURCE VIASPACE Inc.