Clean Energy Pathways, Inc. (CPWY)

[Richard2]

Paper manufacturing is a heat intensive process. They make paper from clean paper chips. When they can the mills purchase roundwood pulp, which is priced favorably right now. They debark it and chip it. Everything that dosen't make top grade is thrown into the fuel pile. They also purchase outside waste, a great deal of it depending on the size of the mill. They are set up for some liquid, the black liquor, which is a biproduct of the process. I'm really not even sure it's used in the main boiler, it may only fire the recovery boiler. The subsidy wouldn't come close to making biodiesel close to competitive, because they are utilizing their own waste. Some mills have so much excess heat that their thermal systems are being utilized to supply heat to colocated renewable-diesel plants and other thermal intensive processes. So, someone at Xcel needs to clarify their market, and, more importantly, their capacity. Capacity is dependent on feedstock supply, not demand.

The smaller uses I was mentioning, well those wood yards, some that take around a hundred trucks per day, require alot of off-road equipment to handle this material. Front-end loaders, bulldozers, etc. are all required. Being that they are off road and lubricity is a concern for the heavy engines, they are a market for biodiesel.

Of course, the glycerin based coal substitute would be more realistic for this market, but still not competitive with wood.