NewStream Energy Technologies Group Inc (NSGP)

[BigBake1]

How would they know the costs when they have never built it and operated it to scale? An example would be a green energy company that propsed to build these algae systems. Originally they envisioned 1 and 10 acre systems, they built a smaller test system and ran it. Turns out that the process didn't scale up very well as the system would explode. As they improved the materials to handle greater stress the costs went up significantly and the size decreased dramatically.

They eliminated the 10 acre system completely as it was not even a possibility and a 1 acre setup was supposed to cost around $180,000. They never completed the 1 acre system that was built in 1/4 acre lots and total costs spent were well over $1 million.

So NO, they do not know the costs as they do not know all the problems associated with scaling up yet. They can anticipate a lot of things, but in the end what works in a lab setting doesnt scale up to a sucessful system.