We'll follow how the agreement develops and unroll into factual transactions. China needs the oil last year, so my guess is they will be shipping it back there as son as they put the cap on the bottles. Maybe using the Regina plant that is already running, and we shall get updates regarding the status of the Alabama and Montana plants. This Chinese have been planning for this for years, and they have back up plans, like securing crop supply from Brazil and other countries.
There is plenty of flexibility on this for both partners and I see this relationship as symbiotic, a win-win situation. I'm sure Mr. Shenher an his team have already identified and acted upon, the different paths they can lead the company towards, in order to maximize its potential and growth.
Probably short term: Regina at maximum capacity to produce cooking oil and benefit also from the livestock feed output, a demanded commodity in itself, with great forecast outlook
shortage has only increased since 2008/2009, since worldwide wildfires, storms/tornadoes,earthquakes, draughts, floodings, etc have been increasing and are projected to accelerate. On top of that, despite this week temporary setback/adjustment, commodity prices are set to continue rising sharply, pushed by the multiple failing economies and free fall of their fiat currencies (including the dollar).
On the medium term, we have the already existing plants, Alabama and Montana, that could play a diverse roll on the areas of biodiesel and biojet fuel production.
Longer term, the new plants than the Chinese want to be built for the JV. And on the part of CPOW, maybe to push the promotion of their already existing trademark brand products in different market areas, as well as expand their biodiesel business. What I see on this company, is all the elements for success, there is a wide and open field of opportunities, and they have the tools, position, experience, will, and now financing and a supportive partner to bring the projects to fruition.
This marriage may not be "Royal", but can produce an offspring capable of overthrowing the current Hegemony.