LOS ANGELES, Feb. 12, 2008 (PRIME NEWSWIRE) -- Allegro Biodiesel Corporation (OTCBB:ABDS) will begin processing its first test shipment of Jatropha oil for use in the production of biodiesel fuel in an effort to seek greater production cost efficiency from supply sources not in competition with food products. The company received its first shipment of Jatropha oil from Global Clean Energy Holdings (Pink Sheets:MLSC), a firm developing Jatropha plantations in Latin America. The two companies have also entered into a testing and processing agreement to convert Jatropha Oil into biodiesel fuel that meets all relevant ASTM and EU specifications.
"Since we began operating our plant in April 2006, Allegro has been a pioneer in the biodiesel industry," said Bruce Comer, CEO of Allegro. "The recent Energy Bill mandates greater development of biofuel resources at a time when competition for feedstock increased key commodity prices. Jatropha oil and other alternative feedstock choices represent the next chapter in biodiesel fuel production. We are very excited about the potential for Jatropha oil from Global Clean Energy to reduce our overall production costs. Given recent price spikes for soy, canola and palm as biodiesel feedstock, we believe alternate non-food based feedstocks will be essential to growth in the biodiesel industry. Jatropha oil has very good qualities that make it a good biodiesel feedstock source. We are confident that Jatropha oil will blend well with other feedstock to produce a high grade biodiesel while addressing the on-going concern of utilizing food for fuel."
The processing agreement provides for Global Clean Energy to ship Crude Jatropha Oil (CJO) to Allegro, and for Allegro to perform a full battery of tests on the raw feedstock in its Pollock, Louisiana, laboratory, process the Jatropha oil into biodiesel, and test the finished product to ensure it meets current standards. It will also send product samples to accredited laboratories for a full series of ASTM testing. The feedstock and processed biodiesel will be further evaluated for direct processing in Allegro's facility along with its ability to blend with other feedstocks including RBD Soy, Crude Degummed Soy and others, a strategy designed to reduce Allegro's overall future production costs and improve its profit margins, while providing Global Clean Energy Holdings with access to the U.S. biodiesel market.
Jatropha oil is derived from the Jatropha curcas plant. The plant is a perennial plant which can live for over 30 years, and produces high quality inedible seed oil. The plant grows in marginal soils that may not be suitable for food production, and is drought and pest resilient, making it an attractive alternative to more costly and production limited edible feedstocks which must be replanted every year. The seeds of the plant yield 32% to 37% oil per seed by weight compared to other common feedstocks such as soybeans, which yield 18% to 22%.
Jatropha has added virtues as a more environmentally friendly and efficient feedstock compared to expensive food-based commodities. Per hectare, Jatropha yields between 2.0 to 3.0 tons of oil whereas soybeans yield 1.2 to 1.5 tons, offering improved finished biodiesel output per acre of feedstock farmed. As an oil producing tree, Jatropha may qualify for various carbon credits under the Kyoto protocol, for additional profit potential to growers.
"This is a very strategic agreement with Allegro. They are a very experienced processor and distributor of Specification Grade biodiesel and have already utilized a number of different feedstocks in their production process. They are logistically well located in Louisiana and can accept large shipments of Jatropha from us through various Gulf of Mexico ports," said Richard Palmer, Global Clean Energy's President and Chief Executive Officer.
About Allegro Biodiesel Corporation
Allegro Biodiesel Corporation is a producer and distributor of biodiesel fuel. Allegro operates a production facility located in Pollock, Louisiana that uses renewable agricultural-based feedstock to produce biodiesel. Allegro began sales in April 2006, becoming the first operational biodiesel producer in the state of Louisiana. For more information, click here or visit the company's website at www.allegrobiodiesel.com.
About Global Clean Energy Holdings
Global Clean Energy Holdings, Inc. is an emerging renewable energy company focused on the production of feedstocks used for the production of biofuels. The company is divesting itself of its remaining legacy biopharmaceutical assets, has already changed its corporate name from Medical Discoveries, Inc. and has submitted its application for a new ticker symbol to reflect its new focus on the biofuels feedstock (alternative energy) market. The company is fully reporting and has applied to re-list its shares of common stock on the Over-the-Counter Bulletin Board. More information regarding Global Clean Energy Holdings, Inc. can be found at www.gceholdings.com
Caution Regarding Forward-Looking Statements
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. To the extent that this press release discusses expectations about market conditions, market acceptance, future sales, future financial performance, future disclosures, or otherwise statements about the future: such statements are forward-looking and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risks associated with the ability of the parties to reach agreement on and close the transactions discussed herein, our ability to obtain financing to fund our operations and to complete the transactions discussed herein, our limited operating history, our ability to manage future acquisitions and expand operations and to implement the use of alternative feedstocks, our ability to obtain contracts with suppliers of raw materials and with distributors of our products, the risks inherent in the mutual performance of such supplier and distributor contracts, our performance and efficiency in producing biodiesel, and other risk factors discussed in the Risk Factors, Business Description and Management's Discussion and Analysis sections of Allegro's Registration Statement on Form SB-2, which was declared effective by the SEC on June 13, 2007, its Annual Report on Form 10-KSB for the year ended December 31, 2006, and subsequent Quarterly Reports on Form 10- QSB and current reports on Form 8-K. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements of Allegro and can be identified by the use of forward-looking language such as "believe," "anticipate," "expect," "estimate," "intend," "plan," "forecast," "project," and variations of such words with similar meanings. Allegro does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.