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Thursday, 06/19/2008 1:56:14 PM

Thursday, June 19, 2008 1:56:14 PM

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$2.52 currently. That's nearly a 10x increase since April when it was bouncing off $0.28. Apparently one very good stock pump. I wish I had purchased shares in April. I don't own any.

I looked into the technology a bit. Hydrogen burns faster so when it's injected into a cylinder with gasoline, the spark will ignite the hydrogen and the hydrogen will wick the flame throughout the gas-air mixture faster than the gasoline-air mixture would burn without the hydrogen. The same principle applies for diesel except that the ignition source is the compression. The faster, more complete burning reduces emissions.

The concept seems extremely plausible to me. I can certainly see how it would reduce emissions but I question any increase in efficiency. It usually takes a percent or so of hydrogen to be flammable and 4% to be explosive. It may be somewhat less than that in a cylinder but it's probably at least a percent to be effective. For a 3.0 liter engine at 1000 RPM, that's about 30 liters of hydrogen required per minute. Not impossible but it does require a fair amount of energy (a few kW) for electrolysis of which probably only 25% of that energy can be recovered when the hydrogen is burned in the piston. Even with increased efficiency of the stroke, my gut feeling is that it would be a wash for efficiency. Still, though, that leaves the reduction in emissions.

For the stock, it's obviously being heavily promoted. I suspect it's at the tail end of that promotion with about $7M worth of stock being traded so far today. By now, I'm guessing those who are behind the heavy promotion have sold and are on to other stocks leaving shareholders to hang on to the 'social responsibility' concept, a concept which may be linked to a highly inflated stock price. That's just my guess, though. Maybe the promoters still have some more stock to unload and will initiate a second wave of promotions.