If we are to believe that NSOL/FFI/KFA are moving forward on CTL development in KY and things might be quiet for some reason, we might understand. Nonetheless, at some point in the near term, we shareholders might expect the company would inform us how the development process is going. And, while I might be off a bit on my best guess estimates, the following should be taking place, as the company prepares to engage in doing something they have yet to accomplish...operationalize a concept. Novel for them, but not other firms in the field. Just to refresh some memories, I have a modicum of knowledge about the energy industry. So, what follows will be a fair assessment...
To this point, having been given 625k by the state of KY, NSOL/FFI/KFA should have:
* Obtained tacit or formal approval from the state of KY, even if they cannot tell us right now; this would include a commitment to tax incentives that must be part of the operating analysis
* A site evaluation should have taken place
* Engineering reports should have been submitted and evaluated
* Decision should have been made on plant size, as that would drive the assumptions...a mega plant would be three times the size of a smaller plant and vastly increase operating expenses, even if achieving economies of scale. For an initial effort, a mega plant might be a reach
* Permits have to be garnered for water, air, and waste...these are often derailers for energy plants, so getting ahead of the curve would make sense
* System engineers, appropriate scientists, technological expertise would need to be identified and engaged
* Value chain analysis would be undertaken. This would provide an evaluation of potential key components, including:
- coal suppliers
- customers for end products
- logistical analysis to include highway and rail support
- vendors to develop the gasification and refining systems
- a determination as to what products would be produced
* Critical path milestones would provide guidance on development, keeping it on schedule and managing costs
* Operating assumptions
- plant design
- equipment needs
- labor needs
- revenues; profitability over time
* Finally, all of this has to be used to garner the requisite financing...
It would seem that the quiet is because the folks at NSOL/FFI/KFA are very busy. And, that is okay. We shareholders ask you to get it done right. We know this is a novel idea; not CTL, but your ability to operationalize the concept...because you have never done it...EVER!
With that in mind, the next thing we hear from you needs to be a confirmation that you are moving forward in some alliance. If, however, the next thing we hear is about spinning off FFI, you are pulling a scam...and you will have a complex problem. I trust I need not explain that one to you...that noise is already on the board...as the wise man said...choose wisely!
AI
