New York, New York
October 10, 2007
Global Energy subsidiary enters
into 50 year lease agreement with Ethiopian Regional Authority
to farm castor seeds for production of castor oil on 20,015
hectares of land in Ethiopia
Global Energy Inc.
(the "Company") (OTCBB:GEYI - News), an alternative energy
innovator focusing on the processing of solid and energy waste
into usable products, today announced that the Company's
majority owned subsidiary has entered into lease agreements
dated October 5, 2007 with the Southern Nations Nationalities
People's Regional State, Ethiopia ("SNRS") for a 50 year lease
of: 20,000 hectares of rural land located in the Gamo Gofa zone
in the SNRS for the purpose of cultivating castor seeds; and 15
hectares of land located in the Gamu Gofa zone, Kucha Woreda, in
the SNRS for the purpose of operating an oil crushing plant
through an existing facility on the property. The agreement is
subject to, among other things, the following conditions:
(i) the Company must pay
SNRS a rental fee of Birr $47 (approximately US$5) or Birr
$78 (approximately US$8.50) per hectare per year, depending
on whether the leased land is defined as second or first
class land, respectively.
(ii) the Company must completely develop the 20,000 hectares
leased to the Company within eight years of the execution
date of the agreement, including planting and maintaining
trees or other oil producing crops.
(iii) the Company must completely develop the 15 hectares
leased to the Company within three years of the execution
date of the agreement.
(iv) the Company must perform a survey on the 20,000
hectares within 24 months of the execution date of the
agreement.
(v) The Company has an option to lease additional farmland
from the SNRS during the term of the lease agreement (up to
an additional 100,000 hectares of farmland) on the same
terms as the lease agreement for the 20,000 hectares.
(vi) The Company is not required to make any rental payments
on its 20,000 hectare lease agreement until the fourth year
of the agreement.
The agreements were entered into
by Global Energy Ethiopia ("GEE"), a 99.9% owned subsidiary of
Global NRG Pacific Ltd., which itself is a 50.1% owned
subsidiary of the Company that was formed as a joint venture
with Yanai Man Projects Ltd. for the purpose of producing crude
castor oil to aid in the manufacture of bio-diesel fuels. GEE
intends in the coming months to enter into community farming
agreements with local municipal authorities pursuant to which
local farmers will grow castor seeds for the Company and for
cultivation of the leased lands with modern advanced
agricultural systems. GEE also intends to file a request for
funding from the Ethiopian Development Bank to fund 70% of the
project investment and working capital for the first year.
"This agreement represents entry into a rich area in a prime
geographic location that holds the potential to garner Global
revenue while providing a sorely needed end-product. With strong
government relations and an infrastructure in place, this joint
venture represents one, of many, large projects on the continent
of Africa," stated Asi Shalgi, CEO.
Global Energy's mission is to commercialize innovative
technologies which produce energy from waste and renewable
sources, while contributing to a vision of a cleaner
environment. Global Energy intends to use of the most efficient
and environmentally friendly of all currently available
alternative fuel technologies, each originally developed and
patented by acclaimed scientists. |
|
