IRVINE, Calif., March 14, 2012 /PRNewswire/ -- VIASPACE Inc. (OTC Bulletin Board: VSPC), and its subsidiary VIASPACE Green Energy Inc. (OTC Bulletin Board: VGREF) today provided a business update on recent bioenergy and pellet activities and opportunities in Asia for its proprietary dedicated energy crop Giant King ™ Grass. On March 7, 2012, the company issued a similar update on Europe and the Americas.
CEO Dr. Carl Kukkonen reports " Asia represents a large potential market for Giant King Grass based bioenergy projects. On the pellet side -- China has restricted the use of coal in small boilers and this has led to a new Chinese domestic demand for pellets. Additionally, a new law in Korea requires the use of biomass for electricity generation and this is leading to a market for pellets. Korean utilities and fuel traders are actively seeking sources of biomass pellets, and are co-investing in pellet projects. Southern China and Southeast Asia have ideal climates to grow Giant King Grass, and the transportation distances to customers in Asia are much shorter than distances to customers in Europe. This leads to very favorable economics for pellet projects. European pellet buyers are also active in soliciting pellet supply from Southeast Asia. VIASPACE is pursuing several pellet opportunities in Asia."
Malaysia, Thailand, Cambodia and the Philippines are actively promoting biomass power plants for electricity generation through government initiatives and feed in tariffs. A feed in tariff is a commitment from the government electrical grid to purchase biomass electricity at a specific price for a specified period of time. A feed in tariff is essentially a government guarantee to buy the electricity and this guarantee can be used to obtain equity and debt financing for the project.
Kukkonen traveled to Malaysia, Thailand and Myanmar in February where he met with current and potential partners for biomass electric power plants in these countries. Representatives from the Philippines and Malaysia flew to California in December to meet with us. In February, Kukkonen also met with representatives of Seema Energy who are developing a 90 MW biomass power plant in Thailand to be fueled by Giant King Grass. Kukkonen also met with Owl Energy, the power consulting company that conducted the feasibility study and developed the Request for Proposals for Engineering, Procurement and Construction (EPC) for the Seema Energy project in Thailand. Kukkonen met with one of the EPC firms to brief them on Giant King Grass as a dedicated energy crop.Kukkonen continued, "In Bangkok, I met with our power plant partner DP CleanTech to discuss the range of potential projects around the world utilizing their exclusive boiler technology with Giant King Grass. DP CleanTech has built 27 biomass power plants over the last six years. Their expertise is in high-temperature high-pressure power plants using straws such as Giant King Grass as fuel."
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