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Does anyone know whatever happened to RBE's pilot plant? Did it work?
Phillip
Biomass is largely driven by political policy. That vetoed bill is geared to New Hampshire, but is a good example of policy shifts that can impact the biomass market. It's also why I'm skeptical of the United States power generation switching to biomass when natural gas seems to be the trend. I only see it being cofired with coal.
The EU doesn't seem to care about the cost and Drax seems to be making it work. Torrefied biomass is a game changer though if it can be done successfully. That will be the competitive advantage over other plants.
Phillip
I have been perplexed by this American power company that wants biocoal when the trend in America is for coal fire plants to be phased out and replaced with cheap natural gas power plants. Maybe this article explains the rationale...
http://www.futuremetrics.info/wp-content/uploads/2017/01/Trump%20Wants%20to%20Save%20the%20Coal%20Industry%20-%20We%20Offer%20a%20Plan%20that%20can%20Help..pdf
Wooo hoooo! Great news. I'd love to be an insider right now.
Phillip
Yes it was Lake Cowichan. I found it also a couple of hours ago.
Thanks for responding,
Phillip
Here's a GIS map that I created on my lunch hour showing the forest residue, railway, and shallow draft ports in Louisiana.
I noticed later that the Natchitoches Port is covered by my BMSP icon. Seems like mapping like this could be used to site new plants. I need to add the Red River also.
On a side note, the company was looking at a site in Canada years back. Does anyone remember where where that was?
Biomass Map
Phillip
I'm about the same. I think the highest I've ever paid was 0.024 though. I don't have an exit strategy. I view this as my retire early stock. With the company mostly owned by insiders, I'm hoping at some point revenues will be at a point where they can buyback shares or declare a dividend to improve shareholder value.
Phillip
Ohh, another 10,000 purchased. Snowball is rolling....
Someone sold me another 200 shares this morning. I think I'm going to panic and sell my entire position now so the short can cover. Lol!
Out of curiosity, does anyone want to share their highest and lowest purchase prices for BMSPF, VMHIF, etc? Total shares owned?
Phillip
Yep. Bonds, offtake agreements, new plants, fiber sources, reverse split, lease terms, etc... All things is like more details on. Then again, I think the best thing the company this size should do is to fly under the radar until revenue starts coming in.
Phillip
Good news!!
Phillip
Funny thing is, I bought a wood burning stove a few years ago and haven't paid to heat my house since. I use wood from my 5 acres of grapefruit trees that I trim back every year.
Now with the arguments about biomass being carbon neutral, I think both sides of the issue are probably exaggerating a bit. I cut my trees with a chain saw, I haul them to my house with a club car, then I burn the wood. Likewise, biomass uses energy for cutting, transportation, torrification, and shipping overseas. Opponents argue that the moisture content of the wood requires additional energy to get it to dry out. I'm sure it does, but the CO2 generated to produce and ship biomass probably dwarfs in comparison to the CO2 sequestered in the wood. I don't even use a gallon of gas to bring my wood to my house, but I would go through 100 gallons of propane pretty quickly to heat my house if I didn't burn my wood. Anyway, despite arguments on both sides, my opinion is it's probably best called "Almost Carbon Neutral." The crux of the issue is the fact that burning a tree releases carbon that is theoretically used up by a new tree that grows to replace the one that is burned.
One other thought I had was on the topic of moisture content in wood using more power to evaporate . . . one could argue that the carbon cycle uses that evaporated water vapor to produce clouds and rain. Rain coming down absorbs CO2 to produce carbonic acid that leaches into the ground/ocean. Can't say that I know if this process is carbon neutral also, but there are so many facets to this topic that I'm sure people tend to pick and choose the once that best support their opinion or agenda. Anyway, I wouldn't disregard the environmental concerns raised. True or not, if they are believed, things could go awry.
Phillip
Just got to work so there isn't much time, but here's another article for you. Like anything political, people tend to believe that they want to believe and not what is factually correct.
http://www.sciencemag.org/news/2017/01/wood-green-source-energy-scientists-are-divided
In addition to fiber supply, one of the long term risks is from wacko environmental groups. Right now Enviva is in their crosshairs. Best thing BMSPF can do is to stay under the radar until plants are built. Having fewer eyes on this company may hurt share volume in the short run, but better in the long run to quietly make plans without attracting attention.
https://www.southernenvironment.org/cases-and-projects/biomass-energy-in-the-south
Phillip
I had seen a map that Drax produced showing the fiber contributing area around each of their pellet plants. It was huge. I'm sure the first company to lock up world wide biomass supplies close to transportation hubs will be the industry leader.
Phillip
Drax really has been a pioneer in Biomass. I'm hoping BMSPF is the pioneer in torrification. Available fiber supply seems to be the only limiting factor.
Phillip
If I remember correctly, Port meetings are the third Monday of each month ago that sounds about right. Do you know if they are on the agenda? Wish I could be there. Was just reading about cajun cooking and Natchitoches is known for meat pies. A guy at church is from Louisiana so here suggested throwing a cajn cooking get together. That would be a shorter drive. :).
Anyway, I hope we'll hear the news you've predicted.
Phillip
Phillip
Ive been on vacation for the last two weeks so I don't have any news. I try to contact the Port for meeting minutes every few months but try not to bug them any more than that. You could try emailing the company, but I've ticked Jim of so I don't ask him anymore. I suspect he'll announce groundbreaking when there is something firm scheduled.
Phillip
Did you catch the plans in the works to bring production to 5 million tons by 2022?
That would be five times the capacity of the Natchitoches plant.
Phillip
Wow, things are rolling along. No construction yet, but lots of good news. Asian license agreement is new. Maybe bring in positive cash flow. Also spelled out how they paid for the RBE technology which was a concern of mine. CFO bought 5 million shares so he has skin in the game and vested interest. Man I wish I bought more when shares were going for $0.002.
Thanks for posting.
Phillip
Fluidized bed reactors aren't new. They are used in many industries. I even had one on my aquarium for ntrification of fish waste. What is new is the use of them to produce biocoal. They did have a pilot plant but I didn't hear how test results went. I assume successful or bonds wouldn't be issued. I did read that getting the right air speed was a little tricky. Can't remember where I read it though.
Phillip
These will get a few more eyes watching the company. I suspect some of those eyes will be saying "Biomass who?". Definitely good news.
I had decided years ago that this stock isn't valued so much on its potential, but how many eyes are actually watching (ie volume). How do you fairly value a market (biomass) that isn't in the mainstream that doesn't have tried and true technology? Once it is proven to be a money maker, that is when we will have people watching and the price will take off. I can't make any predictions on when that might be.
Phillip
Same news different source...
https://www.renewableenergymagazine.com/biomass/bps-licenses-biocoal-technology-signs-mou-with-20180427
Phillip
This it the article that originally got me really excited about this company. If the ROI is 15.3% on $200,000,000 annually when all 3 phases are constructed, then I see an EPS of $0.047 from 645,162,901 shares outstanding. A P/E of 5 would see a share price of $0.235. A P/E of 10 would double that. With new plants being constructed and increased efficiency with RBEs patented fluidized bed reactors, who knows how far this could go.
Phillip
http://www.biofuelsdigest.com/bdigest/2011/06/16/torrefied-wood-a-new-bio-coal-process-that-is-ready-to-go/
The Bottom Line-The Good Prospects for Commercial Viability
As shown in the following P&L Summary, if one of this advanced TW technology provider’s Standard TW plants is up and running in South Carolina and if the price and cost estimates materialize as estimated, a $13.46 per MT after-tax profit could be realized on sale of 40,000 mtpy of TW to EU utilities. The net cash flow generated could be ~$950,000 per year and an average return on investment could be a respectable 15.3% with a return on equity of 51.2%.
I believe I read 10:1 at one point. I think it's in their MD&A, but if they are trying to get over the minimum $1.00 share price that the NASDAQ requires then the valuation the company believes it has is $0.10 per share (with the current shares outstanding).
Phillip
I was a bit surprised that this was an American power company in that I didn't think the United States had the financial incentives to switch to Biocoal that the EU did. Perhaps the requirements for low sulfur coal make biocoal a feasible alternative when considering transportation costs. On the other hand, the press release did mention reducing CO2 so the power producer could be in a state that has state mandated CO2 reduction requirements. Funny that they didn't mention who the producer was. The company doesn't like it when shareholders contact public agencies they have agreements with, but I wouldn't think that power producers are subject to the same public information requests that municipalities have. If they did, I would contact them so it's probably a good thing they kept the power company's name out of the press release.
Phillip
I noticed the short volume also. For a while I had someone nibbling away at a buy order I had in at 0.006. 100 shares here and there. My guess is they were trying to bait others so that they could cover.
Phillip
Thanks.
Phillip
Ahh, was that short volume? Where do you get you stats from? The sites I look at only cover short volumes for the major exchanges.
Phillip
That was a chunk of change someone spent today. Someone has confidence. I have wondered if River Basin would take some of their buyout money and purchase shares on the open market. I would have thought that they would be considered insiders if that was the case.
OCR, nice to see you back. Hopefully this will be an exciting month.
Phillip
When something falls apart, you will never get a press release about it. April is supposed to be the month things happen, but share price and volume don't reflect it. Then again, I don't see any selling either.
Phillip
Nice! Interesting that Drax plans to convert a fourth unit to biomass. Biomass must make financial sense. With The Drax loading facility being in Baton Rouge, I still wonder if they are a potential customer.
Phillip
Maybe you can take pictures of the groundbreaking ceremony and post them here.