Biocentric Energy Holdings, Inc. (BEHL)

[phloyd]

It is both. BEHL will operate and maintain a farm for clients who want to be producers of algae.

BEHL will also operate its own PBRs to fill orders of algae products they solicit.

To put it simply, Martek or Virgin Airlines could invest in the farm for 10 acres each and do with the algae what they please. They will pay BEHL a maintenance fee and royalties on each pound of algae produced. They would share overhead costs such as labor and maintence fees.

BEHL could operate its own PBR in conjunction with RWE to fill the omega 3 oil orders they solicited. They would be in direct competition with Martek to supply omega 3 oil to end users. But BEHL's costs of production is lower. There is no mark up on labor and maintence supplies.

So why would someone like Martek invest if they are already producing algae for end use? No one can come close to the cost of BEHL's system in terms of output per dollar spent. If investors for the farm are lining up now, imagine what will happen when Lone Star proves out the results in a published study.

When the barrier has been proven to be broken in terms of commercial production, there are a number of uses of algae that will suddenly become extremely viable. The use of algae in batteries or in terms of sewage treatment and bioremediation are great examples. Not just fuel.

Whoops, looks like I forgot about algae being used as a bioplastic too.