Monday, April 14, 2008

Bluefire Ethanol Fuels (BFRE)

I bought a small stake in these guys today as I think they have a great potential. I only had about $60 to spend so I ended up with only 15 shares. Naturally the price just had to fall today, but that doesn't matter too much...in a short while it should hopefully be up a lot more to cover it.

The company has licensed a special method of converting various types of cellulose material from the "normal" bio-fuel stuff like corn and grain over wood waste to urban trash. The last bit is the interesting one: urban trash. I think the current bio-fuel producers are being (or will be) put down by using food as fuel and thereby helping push the price of food to new highs. When you think of it, its not exactly intelligent to be using our own food to propel our cars etc., especially with the huge problem of hunger in some third world countries. It's a much better idea to take another one of the western world's big problems, trash, and turn it into something useful.

Not only will the product these guys will produce probably be considered "more green" soon, they're getting ready to roll out production, big time. The cool idea these guys have had, is to build pre-fab production facilities so that in the future they can sell one of their production plants as a turn-key solution. Set up the foundation, have the facility delivered, plug it in and you could start producing ethanol. How cool is that.

Oh, and to top it off, they are the exclusive North America licensee of this technology which means it'll be difficult for other companies to get into the same market as these technologies are still just being developed for commercial use.

The share has already jumped a bit on the news that they're almost ready to build their first production facility, but it think that once they get production up and running the price could seriously take off.

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