The two companies have entered into a testing and processing agreement to convert Jatropha Oil into biodiesel fuel that meets all relevant ASTM and EU specifications.

"This is a very strategic agreement with Allegro. They are a very well respected processor and distributor of Specification Grade biodiesel and have considerable experience in utilizing a wide range of different feedstocks in their production process. They are logistically well located in Louisiana and can accept large shipments of Jatropha oil from us through various Gulf of Mexico ports," said Richard Palmer, Global Clean Energy's President and Chief Executive Officer.

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 out 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 US biodiesel market.

"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 has 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 makes it a good biodiesel feedstock source. We are confident that Jatropha oil will blend well with other feedstocks to produce a high grade biodiesel while addressing the on-going concern of utilizing food for fuel."

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 yields 32% to 37% oil 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 can yield 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.

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