WALNUT, Calif., Dec. 16, 2014 /PRNewswire/ -- VIASPACE Inc.
(OTC: VSPC) issued a clarification to the press release issued on
December 15, 2014.
Clarification: VIASPACE Inc. owns a 50% interest in
Energia Reino Verde. The other 50% is owned by investors and
executives of AGRICORP. VIASPACE executives have no personal
ownership in Energia Reino Verde. All future profits from Energia
Reino Verde will accrue to VIASPACE proportional to VIASPACE's
ownership.
On December 15, 2014, Dr.
Carl Kukkonen, VIASPACE CEO, issued
an update on the 12 MW Giant King Grass power plant project in
Nicaragua.
VIASPACE CEO, Dr. Carl Kukkonen,
just returned from Nicaragua where
he reviewed the final draft of the feasibility study for the 12 MW
biomass power plant project using Giant King Grass as the fuel,
received a proposal from an EPC contractor for construction of the
power plant, held strategy meetings with AGRICORP executives, met
with a potential operator of the power plant, and met with
attorneys and accountants involved in the project. Dr. Kukkonen
provided the summary below.
- Energia Reino Verde, the Special-Purpose Nicaraguan Company
that will own and operate the Giant King Grass plantation and power
plant is owned in equal shares by VIASPACE Inc. and by AGRICORP
investors and executives. AGRICORP CEO, Amilcar Ybarra-Rojas, is the president, and
Carl Kukkonen is the secretary of
the company. It was decided that Mr. Ybarra-Rojas should be
President because he will be the face of the company to the
Nicaraguan government.
- Energia Reino Verde has applied for a Provisional Generation
License for the power plant. The application has been reviewed by
the Nicaraguan government and is now complete after providing three
years of audited VIASPACE financial statements translated into
Spanish and certified by a Nicaraguan accountant. The license is
expected to be granted within 60 days.
- The comprehensive independent feasibility study by Pelican SA
has been completed, and the final draft is in the review cycle. The
feasibility study addresses the technical and economic issues of
both the plantation and power plant, including connection to the
Nicaraguan power grid.
- The major conclusion of the 200+ page feasibility study is that
the 925 hectare (2,286 acre), 12 MW power plant and co-located
Giant King Grass plantation are both technically and economically
feasible. Further details of the feasibility study will be released
when it has been formally submitted to and approved by Energia
Reino Verde.
- Kukkonen and Ybarra-Rojas met with an experienced operator of
power plants in Nicaragua that
will submit a proposal to operate the Energia Reino Verde power
plant.
- A team of seven people representing a potential Engineering,
Procurement and Construction (EPC) contractor to build the power
plant flew to Nicaragua and
presented a technical and financial proposal. Energia Reino Verde
plans to sign a contract with an EPC contractor in the first
quarter of 2015.
- Energia Reino Verde is reaching out to prospective debt and
equity investors to schedule face-to-face meetings early next
year.
- Dr. Kukkonen and Mr. Ybarra-Rojas met extensively to review
technical and business strategies.
Kukkonen reported, "We are making great progress in Nicaragua. This will be a flagship project for
VIASPACE."
VIASPACE Chairman, Dr. Kevin
Schewe, commented, "The Pelican SA formal feasibility study
for Energia Reino Verde and the 12MW Giant King Grass fueled
Nicaragua power plant has been a
large undertaking and Dr. Kukkonen has spent the better part of the
last 2.5 months in Nicaragua
working hard in this regard. This feasibility study reads like the
"Bible of using Giant King Grass" to create renewable, green,
bioelectricity and is the cornerstone of obtaining financing for
the overall project which will be the next major step starting next
month. With this feasibility study, we now have a suitable template
to apply to future projects as well. Moreover, with the selection
of our EPC contractor, we are putting together a regional and
global team that can duplicate this model anywhere that there is a
demand and desire to develop green, renewable bioelectricity at a
competitive price."
Dr. Schewe, concluded, "The Energia Reino Verde power plant
project will produce 84GWh of saleable electricity per year for a
project life of 25 years. The Nicaraguan government policy is to
move to 97% renewable energy and low carbon fuels before 2030. The
government is looking for reliable base load electricity and
projects that can provide regulation and capacity services. This
project fits perfectly in their planning strategy and its
successful implementation will be closely watched by the rest of
the world and a proud accomplishment for Nicaragua and the Central America region."
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 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, Hawaii, St. Croix Virgin Islands, Nicaragua, South
Africa, China, Myanmar, Pakistan, Philippines and Guyana. 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, 2013, and
other factors over which VIASPACE has little or no control.
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SOURCE VIASPACE Inc.