Zenergy International Inc. (ZENG)

[Mr Wizard a1a]

A good deal? In the PR, Zenergy claimed cheap feedstock. Tadaaa reports Greenlight was using animal fat as feedstock. In that 26 page filing, Zenergy reports a price of $1.00 attainable. But, Zenergy says it will pay $1.20 for the feedstock it acquired. A good deal?

"By leveraging corporate relationships, the Company has successfully acquired a contracted rate for its feedstock at approximately $1.20 per gallon, factually a fraction of the wholesale standard."

Feedstock costs account for a large percentage of the direct bio-diesel production costs, including capital cost and return. It takes about 7.3 pounds of soybean oil, which costs about 20 cents per pound, to produce a gallon of bio-diesel. Feedstock costs alone, therefore, are at least $1.50 per gallon of soy bio-diesel. Fats and greases cost less and produce less expensive bio-diesel, sometimes as low as $1.00 per gallon. The quality of the fuel is equivalent to soy bio-diesel fuel.