Clean Energy Pathways, Inc. (CPWY)

[Richard2]

It will not be competitive no matter what the price of oil. When oil goes up, so do everyone's expenses. In turn, the feedstock costs rise, and they stay in step with petroleum. The margins don't change, thus, the tax credit is required for profitability. Not to mention the catalysts' prices fluctuate frequently. These are the same reasons the biodiesel industry is suffering, and why my company has put our plant on hold.

These realities of the business are what's driving the push for new dedicated feedstocks, such as energy grasses. These can be grown on contract and have very few other uses, which takes away a lot of the volatility. Right now, biodiesel, and/or related biofuels, is a commodity business. Meaning tight margins and almost no control over pricings.

Perhaps the factors, that I have mentioned, were the driving forces behind the company diversifying into the solar heating industry.