MARIETTA, Ga., April 23, 2012 /PRNewswire/ -- VIASPACE Inc. and its subsidiary VIASPACE Green Energy Inc.  today reported that the company has installed state-of-the-art pellet production equipment at its plantation site in Southern China.

The company has purchased a 2 ton/hour pellet mill from one of the largest, well-known and reputable pellet mill manufacturers.  The pellet mill is expected to be operational and producing Giant King™ Grass ("GKG") pellets in May and the company will begin selling pellets in the Asia market shortly thereafter. Management expects to initially produce and sell up to 10,000 tons of pellets per year which could generate up to $1.6 million of additional annual revenue ($160 per ton at current prices).  The pellet operation is expected to generate significant gross profits for the company. In addition, the company has capacity to add an additional pellet mill line within the next 12 months to increase annual output to 30,000 tons per year in order to help fulfill the demand for pellets in Asia. Pellets from China will be available for large scale samples for European customers as well.

VIASPACE CEO Dr. Carl Kukkonen remarked, "We are seeing a strong demand for pellets in Asia and particularly in China where the government has mandated the use of more eco-friendly solutions to coal burning.  I have also received inquiries worldwide for pellets using alternatives to wood pellets, and our GKG pellets are the answer.  The site in China will be a live demonstration for prospective customers from other countries who want to see a GKG plantation site integrated with fully functional pellet production equipment.  At the same time, we will be generating sales and positive cash flow for the company selling domestically in China."