Encore Energy Systems Inc (ENCS)

[canyoncreek]

GeoGreenfuel facility built and placed in service late 2006, facility operated into 2007 but was caught in the raw material vs biodiesel market price squeeze. Plant chased alternate feedstocks but had limited operations in late 2007 and essentially none (according to other company execs in the Texas biodiesel business) in 2008. Facility was on the market for sale by late spring 2008. Lawyer representing one of the facility participants indicated few lookers and no offers as of three weeks ago (I am checking with him for an update and to see if LOI actually executed, as of this PM, lawyer's partner thought nothing executed).

Facility is small capacity built as part of GeoGreen's strategy of small local plants (three planned but only Gonzales buult) to process local crops and supply local fuel market's. demand from Europe basically sucked all the feedstocks out of the States and forced high commidity prices - thus impacting the small local facilities like Gonzales and leaving only the large (100Mgal/day) plants capable of playing the competitive raw feed market. While US fuel prices are down, European diesel prices almost unchanged so still huge demand at high prices for the biodiesel. feedstocks.