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VIASPACE Pursuing Renewable Energy Business in Asia
Date:8/4/2009

IRVINE, Calif., Aug. 4 /PRNewswire-FirstCall/ -- VIASPACE, Inc. (OTC Bulletin Board: VSPC), a clean energy company providing products and technology for renewable and alternative energy, is in discussions with potential customers in Asia and other regions seeking renewable and reliable sources of biomass for electric power generation.

Chief Executive Dr. Carl Kukkonen commented: "We have generated strong interest in Asia for Giant King Grass as a dedicated renewable energy crop for energy producers, including power companies that burn 100% biomass instead of coal or natural gas to generate electricity.

Biomass-fueled power plants are typically 10 megawatt (MW) to 30MW in power generating capacity. A 30MW power plant - that can provide electricity for more than 200,000 Chinese rural households - uses approximately 460 metric tons of biomass daily. At current prices of about $40-50 per ton for agricultural feedstock, a 30MW power plant uses about $20,000 worth of fuel each day, or more than $7.3 million a year. According to Kukkonen, biomass power plant operators typically look for 20-year fuel supply agreements with extension options.

Biomass power plants currently use agricultural waste and municipal solid waste for fuel. However, supplies of agricultural waste - including corn straw, wheat straw, rice straw and residuals from growing cotton - are seasonal, since harvests of those crops occur at different times, and the fuel quality of the waste varies with each crop. To reduce these operating and business risks associated with agricultural waste, operators of biomass power plants are seeking a dedicated energy crop, such as Giant King Grass, for at least 50% of their fuel needs.

The Chinese government is strongly encouraging growth of biomass power plants by offering substantial subsidies for using green energy sources and guaranteeing t
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SOURCE VIASPACE, Inc.
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