Global Energy, Inc. (fka GEYI)

[SuperSquirrel]

GEYI is the US partner for Alphakat and here is an interesting comparison of certain claims made from another publicly traded competitor JBII that has also been mentioned on this board:

 
  GEYI Alphakat vs JBII    AlphaKat KDV 500:                 JBI Global:                       Advantage:    
 Volume claims >        1kg plastic into 1 liter diesel   1kg plastic into 1 liter diesel   similar  
 Speed claims >         1 ton organic waste in one hour   1800lb plastic in one hour        similar 
 Modular >              Finished product since 2007       Working on it?                    KDV  
 Fuel quality claims >  High quality diesel               High quality diesel/gas           similar (depends on feedstock) 
 System cost claims* >  Several Million Euros             587k?*                            JBI-KDV?* 
 Patents  >             70+ Worldwide                     Claims 5 in progress?             KDV  
 Field Experience >     Dr. Christian Koch - 20+ years    John Bordynuik - 2? years?        KDV 
 Market Cap >           GEYI (as partner) 15 million?     JBII 180 million?                  ? (subject to change daily) 
 

*The JBI, inc cost claims were not stated as a "for sale" price but rather were claims of what it cost the company to build a system and it is unclear if that price includes shipping, delivery and setup to a remote location. No build costs are available for the Alphakat system and multiple system discount could possibly change the cost per unit so accurate cost comparisons are incomplete (ie JBI does not appear interested in selling their processor for $587k even without the "secret" catalyst).

Both companies claim their catalyst can break the carbon chains where they choose and customize the type of fuel output using low temperatures and no pressure.

http://siliconinvestor.advfn.com/readmsg.aspx?msgid=27346149

Alphakat has a turbine that is run from the diesel it produces and it has no stack and the JBI system uses some of the "off-gas" to heat the processor and captures the remainder.

Another difference is that JBII is showing interest in mostly high carbon waste plastic and also claims to produce #2 diesel and some gasoline while KDV 500 claims to process all types of organic waste (including waste plastic) and has been optimized to produce high caloric value #2 grade diesel fuel (if testing is successful, Covanta has agreed to pay for ASTM diesel fuel certification). Note: it is not disputed that the carbon content in the feedstock determines the percentage of the fuel output. Because Alphakat can accept all organic waste they also offer an additional module to reduce the sulfur content if the clients waste stream contains a lot of sulfur.

Alphakat and JBI Global operate under different business models so cost comparisons are limited because JBI stated it intends to receive considerably higher percentage of the fuel produced so when looking at long range plan, the KDV unit could be considered more cost effective to a prospective customer depending on their projected price of diesel fuel and useful years of operation.

It should be noted that the KDV 500 has been operating in in the USA (Massachusetts) at the Covanta plant under a contract with GEYI since June 2010 and Covanta - Alphakat GEYI has also has been given funding from the U.S. Army to develop a portable waste to energy system. If testing is successful, the contract calls for Covanta to purchase 600 KDV500's and it was estimated up front to take 6 months to one year just for testing. Also noteworthy is that the last modification to the agreement (after Covanta had been testing the Alphakat for several months) Covanta has agreed to pay more of the costs for exclusive rights to the Alphakat system in the US). Covnata is the largest waste to energy company in the US and they researched over 200 companies before choosing the Alphakat KDV 500 for testing.

Other issues to consider:

GEYI had used toxic financing (convertible debenture) which had destroyed the stock price over the last few years with dilution as it has been over three years since the original agreement was made with Covanta. GEYI has recently addressed this important issue with an insider group buying back 2/3rds of the remaining convertible debt and a new director spending half a million dollars to buy common stock (at a discount). Insiders have put large amounts of their own money into GEYI common stock over the years. GEYI had commissioned a third party to evaluate the Alphakat system before they invested into a partnership. One caution is that GEYI is a very illiquid stock and there is no guarantee that Covanta will conclude the deal with GEYI.

JBII has also fallen behind the time-line expectations that Mr. Bordynuik expressed in early 2010 (still no simple air permit?) and they have done several PIPE's and is burning through cash and nobody knows where it is going or if all of the technical problems have been solved for sustained long-term production. At least one shareholder is involved with litigation over removing the restriction on their 1.4 million shares of JBII plus an original directer just sold a large percentage of his holdings. JBI Global SEC filings have been problematic with many restatements and accounting firm changes and several subsidies. I am watching closely to see if any large cap companies actually put their own money into a JBI plastic2oil secret catalyst machine as this would add some needed credibility to the claimed cost effectiveness (Covanta searched for two years looking at WTE systems before choosing to test the Alphakat GEYI waste to diesel system and their final conclusions could come at any time).

Deals that have no obligation from "partners" except that they purchase fuel products at a discount to market prices will do nothing to validate the efficiency of the system.

AlphaK.A.T. fights an uphill battle 2005-2008 (English subtitles)

GEYI and JBII are both publicly traded however there are a few private interesting US competitors that you can also research (Note - Every company that wants to acquire the plastic waste stream is a direct competitor to JBI whereas Alphakat will accept the plastic plus all other organic waste):

Envion
Plasco Energy Group
Splainex
InEnTec
Global Resource Corporation
Agilyx

The field of converting waste (especially high carbon plastic) to fuel has become of interest by many companies as the price of crude oil is starting to make it economically attractive. This competition could put price pressure on the waste stream value if the price of oil continues to climb as competitors desire the waste that has the most carbon content. JMHO

Disclaimer: Information is compiled for discussion purposes only and is paraphrased from many online sources and is not guaranteed to be complete, unbiased, current or accurate and is also subject to change without notice and it should not be relied upon to make any investment decisions.