Industry Source Consulting Inc (INSO)

[red lexus]

Exactly Jaxon....Molen has a $55M contract for biocoal that belongs to VGPR, not the JV. He needs to come up with 50,000 tons per year ASAP. Gaspard's new company can produce approx. 60,000 tons per year now. The JV machine can't produce enough by itself for just the VGPR order, much less anything Joe James needs and any future JV orders. They might be able to get it up to 25-30,000 tons per year by burning wood pellets rather than raw wood waste (high moisture requires longer torrefaction process), but that's not enough. This move allows VGPR to begin shipping biocoal in January, not end of March, 2015. This addresses the capacity issue for VGPR. If the $55M order wasn't legit, why would he be making the effort to expand the availability of product to ship? The JV will handle some of the production for VGPR (40% owned by VGPR), and Gaspard's company can handle production for any overflow. This also expands biochar production if new, large orders develop for that product. This could also result in a Western U.S. plant for orders to Asia, rather than shipping out of the Savannah, GA port.

JMHO, Good luck to all,

RL