SALT LAKE CITY - Green Star Products Inc. said it has signed a contract to build a new biodiesel facility -- the first of several contracts that are part of an ambitious algae-to-biodiesel project.

Green Star has already started fabrication of the 13 modules required for the processing of algae oil and other oils to produce biodiesel. The contract states that Green Star will build these modules at cost and will earn the company a future equity position and cash flows from the facility.

The algae-to-biodiesel plant will initially produce up to 2 million gallons per year. But the capacity could be easily expanded in the future. The algae bioreactor system associated with this biodiesel plant is still under negotiation. Green Star will also participate in the engineering, fabrication and construction of the algae facility.