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Hystart

11/06/17 3:38 PM

#3775 RE: citoyen #3773

Read my post, I am in the AD business, we are an engineering and operations firm. We own and operate many ADs, I am pretty sure I understand the business as well or better than anyone in the US? I wish the economic model was better for AD as a portion of our business depends on it. I think most people and many investors get caught up in the "Green" aspect of the business and lose track of the money. Many dead AD holes in the ground in the US based on that. Not so many now as the 1603 sunsetted a couple of years back and investors have been badly burned. I believe the market to be better in Europe due to different economies, laws, and subsidies.

Here is the problem, average US electrical rates are something on the order of $0.10 per KwHr. That is just a little more than the cost of producing electricity from an AD plant? Tips are low. WIthout significant subsidies NO AD will make electricity for profit.

Now take Renewable natural gas, the going rate 4-5 per MMBTU. The cost to produce it from AD is more like $8-10 MMBTU. So without the RIN NO AD will make natural gas for a profit?

Sorry if you do not like the data, but it is really not very complicated. It is a VERY tough market to make money in, as BLSP is finding out. Yes, developers can make some short term monies putting the projects together, but these projects are very expensive to build and operate, most do not make it.

Time will tell, but the reason BLSP moved quickly away from the US is due to profits not being here.

Hope their Euro business does better.