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thetruth63

12/27/10 5:12 PM

#6893 RE: The Cheap Investor #6892

I think thats kind of what i was saying. From what I have been reading over the past year, the plants have been bought for pennies on the dollar. Someone knows the demand is coming. Its not so much the cost of the old fuels vs the clean fuels, its the fines that are going to be imposed; that and the tax subsidy. IMO, we are in a much better place than last year and I expect some big things to happen. Someone else must think so, if they are willing to make 30 and 60 dollar trades the last two days, to try and bring it down.
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thetruth63

12/27/10 5:31 PM

#6894 RE: The Cheap Investor #6892

"We have a good customer base and we look forward to offering our fuel at competitive prices. We intend to reactivate our fuel deliveries immediately. Our biomass fuel product is an established brand and we have the infrastructure in place to begin servicing our customers immediately. With this, we look forward to a prosperous 2011.
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Richard2

12/27/10 9:41 PM

#6895 RE: The Cheap Investor #6892

Biodiesel from algae is still awhile away, and swithgrass is used for 2nd generation ethanol. The tax credit alone does not insure a biodiesel operation will survive. 2009 was a terrible year for biodeisel with the falling petrol prices. An operation must also have an efficient conversion process and a favorable feedstock market. However, high petrol prices, such as we see now, combined with government incentives make it almost impossible to fail. I believe XPGH is using waste vegetable oil, so they will only be limited to the WVO supply.

To answer your question, natural gas is very affordable but probably not going to affect XPGH's fuel. Waste motor oil is much cheaper than biodeisel, but supply is just not there outside of heavily urbanized areas. XPGH is competing with diesel fuel in deisel-fired industrial boilers. At least that's my understanding from what information the company has released.

I always thought their glycoal product was the golden goose for this company, but I haven't heard anything from the company regarding that in awhile. Commercialization of that product would've allowed them to compete with coal.