Replies to post #28341 on Viaspace, Inc. (VSPC)

[BreakingGood]

Most of those biomstter plants, and perhaps close to all of them are for biodigesters that will use animal waste and remnants and bagasse from crops that have been planted for food. The cost of using that as feedstock is minimal because it is otherwise just burned or disposed. Therefore it can compete with fossil fuels. Growing dedicated energy crops is usually more expensive. Many of the islands and countries that VSPC are targeting have large poor populations and have to take into account the cost of growing energy vs. using what's already there or importing it. Yes these countries would rather grow the energy and create local jobs. However, the larger the gap in the cost of doing that vs. cheaper fossil fuel alternatives, the more likely economic pragmatism will win.

[BreakingGood]

I do have a couple more points to make on this subject:

-- All the projects you cited probably were initiated before June when the price of oil peaked at $107 and there was a lot of concern there there may be supply disruptions due to geopolitical concerns.
-- The price of brent crude oil just dipped below $63 and there is little concern regarding supply disruptions. We are living in a different economic reality today (until it changes again which it inevitably will).
-- Having said that, we should keep in mind that oil is generally not used to generate electricity. GKG usually competes more with local food crops, other energy crops, natural gas, LNG, propane, coal and even solar. Natural gas prices are set locally. Solar costs have been steadily declining. LNG and propane do decline along with oil prices. Lower oil prices will put some pricing pressure on gas prices. Countries do want to move away from coal because of their carbon emissions. However, there is a growing market for pellets to mix in with coal.

The bottom line is that I do believe there are still opportunities for GKG based on its unique combination of high energy output and applications for animal feed, land remediation and perhaps for bioplastics (long-term possibility), but the competitive environment is becoming tougher.

[hedge_fun]

The free market works every time it's tried........

Alternative energy began as an "issue" for politicians. It didn't begin as lowered priced options for consumers. Oil not only competes with "growing your own energy", it is much more efficient.

When so-called alternatives were proven to emit MORE pollutants and/or green house gases than conventional sources, the carbon offset scheme was developed. I even discussed it with at length with a company that wanted me to sell certain projects.

If St. Croix ever happens it will be a direct result of subsidies, and not free market capitalism. If it was less expensive OIL, GAS, and ENERGY COMPANIES would be......growing their own, and watching it grow.

Just trying to keep it real.

And I hope eveyone has a great holiday season. I recently had a slight cancer scare (blood in urine - all clear). Glad you and I can continue the friendly debate.

Take care all.