I believe there are 3 or 4 different types if biomass pellets, this is a very new energy source maybe 5-10 years at the most, but wood/sawdust from mills are by far the most widely used & produced. I believe other biomass pellets can be made from almost any dry compressed vegetation ex: grass, wheat, corn stalk but I'm no expert in this area, if KGET has a unique pellet that is more efficient then it will sell faster & for a higher cost per pound! At our last energy conference biomass pellets were considered an area of extreme growth through 2020, but the main concern was the availability to supply large & highly populated areas.
I found this chart on the internet in regards to biomass pellet usage in Europe & you can see the demand will increase quickly as the new European pollution regulations take effect! I've already done extremely well on this stock and made a ridiculous profit when I sold & still own approx 30,000, I was advised by my good friend who is a micro cap researcher to buy this stock at $.0005 so my risk is gone here. There is definitely cause for concern if you look at this managements past but sometimes just being in the right place at the right time can be all you need to launch a successful company & the demand for the product will sell itself, hope that helps. I'm no energy expert, but working in the middle of the Marcellus Shale industry I've seem a lot of people become wealthy by investing in this industry just a few years ago!
Europe
EU Pellet Use (ton)[44]
Country 2013
UK 4 540 000
Denmark 2 500 000
Netherlands 2 000 000
Sweden 1 650 000
Germany 1 600 000
Belgium 1 320 000
Usage across Europe varies due to government regulations. In the Netherlands, Belgium, and the UK, pellets are used mainly in large-scale power plants. In Denmark and Sweden, pellets are used in large-scale power plants, medium-scale district heating systems, and small-scale residential heat. In Germany, Austria, Italy, and France, pellets are used mostly for small-scale residential and industrial heat.
In the EU, the largest users of wood pellets are the UK, Denmark, the Netherlands, Sweden, Germany, and Belgium
Pellets are widely used in Sweden, the main pellet producer in Europe, mainly as an alternative to oil-fired central heating. In Austria, the leading market for pellet central heating furnaces (relative to its population), it is estimated that 2/3 of all new domestic heating furnaces are pellet burners. In Italy, a large market for automatically fed pellet stoves has developed and are currently being mass produced for the public
