Here's where 'diversification' starts 2 pay-off....if one sector is having problems they can still fall-back on their other sectors to take-up the slack. This is a very good example of what makes Enviroteks Game-plan superior to so many other small 'green' companies.
Even if worst came 2 worst and the Biodiesel subsidy was eliminated or stalled for a lenghty period , ENTK could still conceivably turn a profit , continuing to sell the Extreme Mini-Refineries and the 'All Green Energy' product-lines.
The RTR Waste-heat2energy reactors are still making money for ENTK & we have 1st right-of-refusal to expand the scope of collaborative operations. Like Extreme , RTR also has a product-line of reactors for sale to private parties for self-generation operations. There's lot's of money to be made in this sector as well.
Looking closer at the Biodiesel situation....
With the exception of some low volume freebie restaurant grease that they might have access to , Extreme most likely gets their preferred 'yellow grease' feedstocks from a wholesale dealer. Raw Yellow-grease wholesales for between $1. & 1.50/gal. (thats how the wholesaler makes his money) depending on the quality. Besides Biofuel feedstock , the wholesaler can (& does) sell it to cosmetic companies and other concerns. Because the wholesalers have other buyers , they may or may not be subject to market forces (I don't know but plan on finding out) and therefore , they may not be willing to bargain to compensate for lower sales to other Biodiesel buyers due to the lower subsidy allowance.
Having said all that , Extreme Bio still gets a .33cents State subsidy (like MrFence says) , which is over and above what Biodiesel refiners in other States bring in. They normally make an extra $1/gal. and turn a profit , Extreme normally makes $1.33 but could make the same margin as the others by finding a .67cent savings somewhere. Save .67 and add the .33 subsidy and we're right there where the others like to be. They 'might' be able to bargain w/ the wholesaler for some or all of this savings but they're more likely going to need to find a cheaper source altogether. The proposed Algae farms might be that source.....the Biocentric farms are on-hold but RT is negotiating to get feedstocks from an existing open-pond algae farm near the Salton Sea. I don't know what the cost of the planned algae feedstocks are but I'll try to find out.
In any case , this biodiesel subsidy issue isn't a crippling blow to ENTK , not by a long-shot.
ENTK has a lot going on and a lot going for it.
"Diversification" is a good thing & can keep ENTK going while the others fall by the wayside.
AIMHO
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