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GSHF News GS AgriFuels Acquires Stake in ZeroPoint Clean Tech, Inc.

NEW YORK--(BUSINESS WIRE)--GS AgriFuels Corporation (OTC Bulletin Board: GSGF) today announced its acquisition of about 10% of ZeroPoint Clean Tech, Inc. (“ZeroPoint”) for $2.5 million. ZeroPoint is a development stage company commercializing patent-pending and proprietary biomass gasification, gas-to-liquids, gas processing and fuel reforming, and evaporation technologies.

Under the terms of GS AgriFuels’ investment agreements with ZeroPoint, GS AgriFuels also received an option to purchase another 4% of ZeroPoint and Thomas Scozzafava, GS AgriFuels’ president and chief operating officer, was appointed to the ZeroPoint board of directors.

ZeroPoint’s Biomass Gasifier is designed to standardize variable cellulosic and other biomass feedstocks and optimize high yields of high-quality syngas in real-time with greatly increased capital and operating cost efficiencies at much smaller scales as compared to traditional gasification technologies.

The syngas output of ZeroPoint’s gasifier can either be used to generate electricity in a standard gas-fired generator or catalyzed into liquid fuels such as ethanol, methanol or synthetic diesel with the Fischer-Tropsch process.

Biomass Gasification and Synthesis Gas

When biomass is heated with little oxygen needed for efficient combustion, the biomass breaks apart into its molecular constituents, or it gasifies, into a mixture of carbon monoxide and hydrogen gas called synthesis gas, or syngas. This is similar to the process that occurs with wood in a fireplace. As the wood becomes very hot, it gives off its volatile gases – syngas – and it falls apart into a relatively low volume of ash. Because there is an open flame and ample free oxygen, the syngas emitted by wood in a fireplace combusts immediately and produces fire.

Gasification converts carbonaceous materials into syngas, and a biomass gasifier is a system that can gasify biomass such as wood waste, municipal waste, or agriproducts into syngas. Importantly, syngas produced in a biomass gasification process can be converted into liquid fuels and other products through a catalytic chemical reaction called the Fischer-Tropsch process.

To date, the most significant resistance to wide-scale use of biomass gasification has been the requirement to customize gasifiers for the specifics of each individual application. This is because different forms of biomass have different sizes shapes, densities, moisture contents, cellulosic structures and gasification and devolitization characteristics. Customization requirements and the practicality of gasifying variable feeds have typically constrained gasifiers to larger scale, capital intensive designs.

Mr. Scozzafava said that “We believe that the ZeroPoint technology is the most cost effective commercially viable technology available for producing cellulosic ethanol and other biomass derived liquid fuels. ZeroPoint’s gasifier is scalable and very robust – it can readily accommodate variable biomass feedstocks while still achieving its production goals, and we plan to rely on the technology extensively as we develop our agrifuel production facilities.”

ZeroPoint has successfully demonstrated the capabilities of its technologies in a small scale pilot processing plant and it is currently building a commercial scale pilot plant based on its technologies at Clarkson University in Potsdam, New York.

GS AgriFuels’ sister company, GS CleanTech Corporation (OTC Bulletin Board: GSCT), recently entered into an agreement with ZeroPoint for the exclusive rights to distribute ZeroPoint’s technology in the North American corn ethanol production industry.

About ZeroPoint Clean Technology, Inc.

ZeroPoint Clean Technology is commercializing patent pending and proprietary gasification, gas to liquids and fuel reforming technology that ZeroPoint believes is the most effective technology available for use in gasifying biomass to create carbon-neutral energy (gas, electricity, ethanol, diesel substitutes and hydrogen), clean water and other valuable products. ZeroPoint’s technology is well suited for distributed deployments, making it highly applicable to the localized nature of many global sources of biomass feedstock. ZeroPoint believes that its commercial offerings are highly valuable to the rapidly growing global, renewable energy industry. ZeroPoint is a part of the Golden Technology Management portfolio.

About GS AgriFuels Corporation

GS AgriFuels was founded to produce and sell clean fuels from agriproducts in innovative ways. GS AgriFuels’ business model is based on the manufacturing and sales of proprietary biodiesel equipment and the use of new technologies to produce biodiesel and ethanol from non-traditional feedstocks such as corn oil and cellulosic biomass through the utilization of several new proprietary technologies, including innovative desiccation, process intensification, gasification, catalytic, and carbon capture technologies, synergistically at small-scales to enable the refining of many forms of biomass into clean fuels at Integrated Multi-Fuel (“IMF”) production facilities.

GS AgriFuels is majority owned by GreenShift Corporation (OTC Bulletin Board: GSHF), a company devoted to facilitating the efficient use of natural resources.

GS AgriFuels is party to a merger agreement with, GS Energy Corporation (OTC Bulletin Board: GSEG), another majority held GreenShift company, pursuant to which holders of GS Energy common stock will receive 1 share of GS AgriFuels common stock for each 1,000 shares owned in GS Energy, for a total of about 2.5 million new shares of GS AgriFuels common stock. GS AgriFuels will be the surviving entity of this merger and is expected to have about 31 million shares of common stock outstanding and no shares of preferred stock outstanding.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GS AgriFuels Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.