BBDS – Better Biodiesel: Bottom Line – Animal Fat Could be the ONLY Cost Effective Biodiesel
BBDS.OB Better Biodiesel Stock Guru Profile
The majority of biodiesel plants are geared to produce biodiesel from crops.
Big Problem: the cost of those crops. By using animal fat, Better Biodiesel is not only better, it’s cost effective. The numbers are harsh but they are crucial in understanding why Better Biodiesel has an important patent pending technology and significant contribution to make to this nascent industry.
In the final analysis, after you get past the celebrity endorsement, the conservationist’s analysis, the political support, biodiesel is a commodity and cost is crucial.
Producing and selling soybean oil was 18% more advantageous than producing biodiesel during the month of June, according to a study by Safras & Mercado. The price of soybean oil rose 45% in the past 12 months on the Chicago Board of Trade (CBOT). The last time prices were more favorable for biodiesel was in May 2006, when prices of soybean oils still compensated the manufacture of biodiesel.
At that time the ratio between the final price and the cost of producing soybean bran and oil was the equivalent to US$13.61 per soybean bag. To produce soybean bran and soy oil the equivalent cost was less than US$13.09. In June 2007, the comparison was US$14.55 and US$17.28 respectively. This calculation takes into consideration the respective prices of the sale of the products and the cost of crushing and processing the soybeans. This price is valid for companies that do not buy soybeans on the future’s market.
Last Monday, soybean oil was priced on the CBOT at 36.93 U.S. cents per pound. On the other hand, average biodiesel liter prices negotiated at auctions by the National Petroleum Agency (ANP) fell from US$1.00 in the third public auction in July 2006 to US$0.97 in the fifth auction in February this year, down 2.2%.
Reality Check: Everyone (well, almost everyone) wants biodiesel to work. It has the potential to be good for the environment, it frees U.S. dependence on foreign oil and it diversifies our energy dependence. However, in the long run it must be cost efficient. Better Biodiesel has that ability.
As biodiesel becomes a mainstream fuels alternative and a commodity the bottomline will be cost. Better Biodiesel has the competitive edge by using lower priced animal fat and a waterless system.
Source: Better Biodiesel
Better Biodiesel, Inc.
355 South 1550 West
Spanish Fork, UT 84660
Phone: (801) 798-7576
Email: info@betterbiodiesel.com
Website: www.betterbiodiesel.com
Investor Relations:
Capital Group Communications, Inc.
Anthony Evans / Mark Bernhard
betterbiodiesel@capitalgc.com
(415) 332-7200
About Better Biodiesel: Better Biodiesel has developed proprietary waterless technology that significantly reduces the costs of biodiesel production and environmental impact. A key environmental distinction in Better Biodiesel’s production method is the absence of any caustic chemicals in the catalytic reaction process, which eliminates the washing and evaporation steps necessary under customary biodiesel production processes. This proprietary technology speeds up the production timeline, increases the volume of fuel that can be made within a given time period, and reduces the amount of land needed for the production plant. Better Biodiesel’s initial pilot plant is producing approximately three million gallons per year and has a total footprint of less than 160 square feet. By contrast, several acres are required for a conventional biodiesel facility of the same production capacity. Initial Company estimates indicate that Better Biodiesel can expect to achieve a 20 percent reduction in the cost of producing biodiesel fuel, and a 40 percent reduction in the cost of building its biodiesel plants as compared with conventional production methods and facilities. Better Biodiesel’s objective is to become one of the world’s largest producers of biodiesel. (www.betterbiodiesel.com)
Forward-Looking Statements: This release includes forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the Company’s progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management’s opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) BBDS’ ability to manage the future acquisitions and the expansion of operations; (2) BBDS’ ability to obtain contracts with suppliers of raw materials (for our production of biodiesel fuel) and with distributors of our biodiesel fuel product; (3) the risks inherent in the mutual performance such supplier and distributor contracts (including our production performance); and (4) BBDS’ ability to raise necessary financing to execute the Company’s business plans.
Disclosure: Pentony Enterprises LLC has not been compensated for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable.
Disclosure: StockGuru.com is owned and operated by Pentony Enterprises LLC,9555 Lebanon Road, Suite 103, Frisco, Texas 75035. Telephone: (214) 458-4258. Web: StockGuru.com. Email: Publisher@stockguru.com.