Momentum Biofuels Inc., headquartered in League City, Texas, engages in the production and marketing of biodiesel fuel. Trading on the OTCBB, they produce their biodiesel from soybean or mustard seed oil. Biodiesel is a renewable fuel that can also come from other vegetable oils, as well as animal fats. They are then blended with petroleum-based diesel fuel for use in existing diesel engines.
Founded in 2006, Momentum is part of the Specialty Chemicals industry in the Basic Materials sector. Their biodiesel product is for local distributors, jobbers, and state and local government fleets in the United States. Their primary product is pure biodiesel, or B100. The company also plans to sell glycerin, which is produced as a byproduct of their biodiesel refining process. Glycerin is a primary component in the manufacture of soap.
In addition, Momentum has plans to produce other alternative fuels, although no production as such is currently underway. Momentum currently is working to solidify their market presence in Texas through the sale of B100. Because the demand for biodiesel is growing in the state of Texas, the company believes they are in a strong position to profit from this demand. The company’s focus is on manufacturing a quality biodiesel product using the latest technology while keeping costs low.
Momentum intends to market their biodiesel directly to government fleets and metropolitan public transport fleets. They see the market potential here because these fleets can earn alternative fuel vehicle (AFV) credits by purchasing biodiesel. The Energy Policy Act requires these fleets to earn these AFV credits. Momentum also intends to establish working relations with Texas and national distributors interested in purchasing biodiesel.
Momentum Biofuel’s plant is in La Porte, Texas. It is a 14,160 square-foot office and warehouse building on 8.7 acres of land. Their plans are to continue to operate this plant efficiently at the capacity they set for it to ensure profitability. However, they also plan to open additional plant sites in the Gulf Coast area. Their plan is to secure production sites that are next to, or co-located with, marine fuel terminals. Access to water delivery routes for delivery of feedstock in, and delivery of finished product out, is the company’s goal here. This close access to water delivery routes will allow the company to take advantage of opportunities to expand into the European market.
Momentum is increasing their pace to produce renewable fuels domestically. They are contributing to the ‘greening’ that is revolutionizing the Specialty Chemical industry. They hope to keep the momentum going to provide for sustained growth for the company and all their investors.
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