Knobias Clip Report (01-05-20009) GRH
Submitted By Knobias ClipReport
GRH: Receives EPA Approval to Distribute Biodiesel to U.S. On-Road Market
By Fain Hughes, fhughes@knobias.com
GreenHunter Biofuels, LLC, a wholly-owned subsidiary of GreenHunter Energy, Inc. (GRH), has been approved by the Environmental Protection Agency to sell GreenHunter Biodiesel(TM) to the on-road market in the United States. This approval by the EPA significantly improves GreenHunter Energy’s biodiesel distribution capabilities in the United States. also plans to sell biodiesel abroad. GreenHunter plans to service these markets with biodiesel produced from its 105 million-gallon-per-year biodiesel refinery in Houston, TX, the largest in the country.
The U.S. Energy Information Administration (EIA) projects that biodiesel demand will increase 24% per year over the next ten years. There is currently a biodiesel tax credit incentive of $1.00 per gallon through December 31, 2009.
Gary C. Evans, Chairman, President, and CEO of GreenHunter Energy recently explained, “The renewable fuels industry faces a challenging environment in which crude oil has fallen. Even though we have experienced a dramatic decline in the price of our finished product, producing biodiesel from animal fats continues to make economic sense and is a financially viable business. Feedstock prices, which represent approximately 85% of the cost of goods sold in our biodiesel business, have decreased by almost 70% in the same period that crude oil has fallen. Additionally, the new Presidential administration continues to pursue significant financial incentives for the alternative energy industry which we believe could directly benefit GreenHunter Energy. We are confident that with our lower-cost, higher-quality production approach, we will be able to produce biodiesel profitably for our shareholders.”
The Company, through its GreenHunter Wind Energy, LLC, is also developing wind energy projects in Montana, New Mexico, California, Wyoming and Texas with potential to generate over 1,200 MW of wind power. The Company has compeleted an agreement to acquire 900 MW of Chinese wind turbines from MingYang. The first Chines turbines are expected to arrive in the U.S. during the first half of 2009. GreenHunter has the preferential right to purchase any turbines to be exported by MingYang to North America.
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