Sustainable Power Corp. (SSTP.PK) and Blue Harbor Energy, Inc. seek to replace cellulosic ethanol.
One of the issues affecting biofuel production is that the process itself can be environmentally unsound in some cases. One of the biggest such controversies centers around cellulosic ethanol. And two companies think that they can take on ethanol and develop a green power source that offers more power, but uses less energy to produce. Yahoo! Finance has the story of the companies that hope to take on cellulosic ethanol:
Unlike cellulosic ethanol, these fuels can be distributed by using existing oil pipelines, rather than uneconomical trucks and trains, dispensed through existing gas stations, rather than specialized pumps, and used in existing engines, rather than modified "flex-fuel" engines. In short, these are biofuels that can be substituted directly and immediately for gas or diesel on a gallon-for-gallon basis.
The company behind this, Sustainable Power Corp. (SSTP.PK), is a company that claims to be a green energy company with proprietary rights to this production method. However, there has not been a lot of detail released about the company's practices on a more practical level. The stock is in Pink Sheets right now, selling for $0.03 per share.
So here's the deal: the company, if its new agreement with Blue Harbor Energy in Texas pans out, could hit it big. It promises a clean energy source that doesn't require us to change distribution methods, or to get new cars. And buying now could mean a lot down the road. But these alternative energy and biofuel stocks are notoriously volatile, and one ever knows what will take off and what won't. Plus, with oil prices back down to something more reasonable, interest in biofuels is waning (and Exxon — XOM — stock is gaining). But if things continue as they are, biofuels could heat up again at any time.
Disclosure: I invest in none of the companies listed above.
Photo:kqedquest , Creative Commons, Flickr