Papamoka, Very wise post. People are so fixated on building a plant that they forget the initial objective was to make money. The plant in Allendale is now a non-quotient as you said. I mentioned a couple weeks ago that the Vencor PR stating that Gaspard had a machine that produced 5 tons/hr. "at a fraction of the cost of other machines currently available" was a game changer. What if that fraction is really small? What if Molen can get a machine for less than a million? What if Molen can buy his bio-coal from Vencor cheaper than he can produce it in Allendale? You can't blame Molen for switching gears if a better opportunity to make money has presented itself. Remember that Joe James' company Agri-Tech markets the NC State machine, and he is probably married to it for that reason. He wouldn't want to have a bio-coal plant that used a competitor's machine. Not good advertising. When you see a pic of that machine, do you honestly see 5 million dollars? And why would Molen want to pay for a machine that is now grossly overpriced? Gaspard has built a better mousetrap. I don't think Vega needs a plant to accomplish their objective, to make a lot of money. The orders belong to Molen, he just needs to get bio-coal for the cheapest price possible, no matter the source. Gaspard is no fool, he wouldn't be expanding production for non-existent orders. Vega will be billing customers for bio-coal in Q1, 2015 whether Allendale is built or not. If Allendale doesn't get built, then down the road, Molen may well decide to build a plant, and he won't be splitting it 40/60 with Agri-Tech and he won't need nearly the amount of $$ to get it built. A J/V with Vencor is another possibility.
GLTA,
RL
