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They've also finished their spending spree of re-acquiring all control of Vertigro, Vorticom while progressing nicely with their bio-reactor in El Paso.
With their stock hitting an all-time low last week of .29c, per share, and their outgoing expenses seriously reduced, any player believing in this with extra cash on hand would buy in seriously and easily.
In Kertz's more recent interviews, I got the feeling he's ready to either license his technology to any major player that will buy, or sell off completely if he got a great offer.
On both CNN's latest interview with him, and his last interview with Bloomberg TV, he 'sounded' like he was both predicting and promoting the idea that big oil and big aviation fuel players would be either licensing or merging with the leading smaller Algae-Oil leaders who are currently pioneering along.
I suspect some larger investor likes the idea of having a huge amount of their stock, looking out for a merger, acquisition or huge licensing deal (where the stock would shoot up like mad), or its an investor already connected to one of the other "players" in negotiations now with Valcent that we may be unaware of.
I only own 1000 shares of them now, wish I had some cash on-hand to buy more. I do think 'something positive' is about to happen with Valcent.
By Kertz's estimates, they won't be super-hot property for about another 12-16 months, just shy of his 2-year estimate to be in heavy production of bio-diesel and aviation fuel. Someone could be preparing far in advance of that, seeing the stock bottom out.
My gut feeling anyway. I past interviews Kertz was sort-of "I've got the secret ingredient..." new technology presenter. Now his latest interviews are more like, here's where everything is going, and here's how fast it will happen. Oh, and by the way, large Oil companies are getting into it.
I think his business side is overtaking his scientist side as of late.
Terry
Here's a good link on the Valcent recent transactions story. Standard & Poor confrmed the story as valid and stock-worthy.
http://www.valcent.net/s/NewsReleases.asp?ReportID=321434&_Title=Valcent-Purchases-Remaining-50-Of-Vertigro-Algae-Technologies-LLC
It shows how they're moving money around to centralize the upcoming sales of Vertical Growing Systems and Biofuels from Biomass (Algae). Expected stock sudden increases are expected in December.
I hope I have enough spare change to get up to about 10 or 20K shares of these guys.
Long-term, I think they'd hit a $5.00 - $10.00 stock mark in 4 years or less, especially with the government expedience Canada and Australia, along with a rumored deal with Great Britain and other UK entitties now in the works.
So much pressure will be on the US Govt. to get moving, I think they'll have a pretty smooth walk.
And if you want it, I have a great Oil stock for you too. It would be comparable to getting in on the ground level of a BP type of company in a country rich with oil, and virtually an infant Oil industry. Their stock is currently at .08c per share as I write this.
Valcent recently signed two huge agreements for them, and have begun a long deployment of Veritgro Reactors in Tasmania, Australia, and set to expand the agreement for Victoria and Queensland Australia too. These reactors are seen as a national effort to keep crops and produce in surplus and good supply during times of drought and bad weather years with Valcent's advanced Algae-feed hydroponics.
Similary, Alberta, Canada just signed the same agreement to work over the large numbers of Vertigro reactors and monitoring systems for crop growth, to make good crop supplies and companies more disaster proof for their publics food chain and consumption curve. Both contractual agreements got a lot of national attention in those countries. Here in the USA, all the finanical trade magazines and papers also took significant note of that.
Included in those agreements were OEM distribution agreements by both governments to be able to resell and distribute the technology to both other private and government sectors to help spread the methodology around.
Just after these orders had been placed, Valcent recently bought-up the remaining 51% of the outstanding Vertigro stock, which was a wholly-own subsidiary of Valcent, to make sure it all works as a single company now, and that control of the entire Valcent Enterprise is re-structured smoothly as their expansion warrants.
Best news about those contracts, the OEM distribution agreements also provides for Australia and Canada to be able to sell the technology to the private sector for use in providing the Algae-to-Oil technology to their own refinsing complex's first to investigate, then to being energy-oil production from what is expected to be more bio-mass reactor purchases from Valcent, or their royalty providing partners worldwide.
Valcent, therefore, probably until late December is in spending mode, to get everything out and swiftly, for filling those orders and calling up a new round of Valcent company expansion meetings.
I think, combined with the economic downfall, the heavy spending and aversion to high-tech stocks/alternative energy has kept the stock on a fluctuating down state. I, myself, bought 1000 shares at .40c per share, and the lowest I've seen it hit was .36c per share during all of this mess. I've had it as high as .60c per share during the last few months. The average mark was/is about .41c / share over the last bad market month.
Personally, I'm encouraged to buy more, and I like the fact the company is a bit diversified as to good cash flow and sales ability in using their bio-mass reactors and domestic products as a financial spine that seems to protect them during the worst of times. I think you've only see the worst the market is able to inflict upon a joint Canadian/USA owned company. They have a dynamic placement right now, that if their management is smart, (and I personally do not know how smart they are in strategic marketing and tactics...) they should be in a position of great growth if all falls into place.
You add all of this up with the facts that Green Star Products, Boeing, Gulf Chevron, BP, Petrosun, Sapphire Energy and others are all racing more investments and production into bringing clean biodiesel and gas and jet fuel to the market, you have great indicators to buy hard, hold long, and see what happens. My personal opinion, is that this is a good buy, but you should be ready to diversify, and pick the best horses when this segment of the industry really takes off. I believe we're in the very infancy of it still.
I worry about Petrosun and Boeing/Origin Oil and BP, who are still pursuing the deep pond production scheme that offers very little of the production, protection and quality controls of the Oil producing systems they want to employ. Valcent, Sapphire Energy, and Green Star, who all also use ponds, but in different ways, have the bio-reactor systems coming up fast, where they can ensure pretty great production standards and increasing yields of supply, that can stand up to bad weather, lack of sunlight, and offer more things like dna manipulation, genetic modifications, and a wider variety of profitable product options.
For me? I'm sticking with it.
Primer: What You Need to Know About Brazilian Biofuels
Written by Craig Rubens
11 CommentsPosted May 7th, 2008 at 12:00 am in Big Green, Features, Science/Technology, Yahoo! Buzz
While U.S. ethanol producers are like teenagers in the global biofuels market, Brazil is like a mature adult, approaching middle age. The Brazilian government began investing heavily in ethanol infrastructure and R&D more than 30 years ago. Now the country, which produces 45 percent of its own transportation fuel “on only 1 percent of its arable land,” is aggressively looking beyond both first-generation biofuels and its domestic market.
Brazil currently produces 4.7 billion gallons of ethanol every year; the Brazilian government estimates that number will double by 2015. And they are increasingly looking at the U.S. as potential buyers. Although President Bush did sign an ethanol technology-sharing agreement with Brazilian President Luiz Inácio Lula da Silva, a 54 cent-a-gallon tariff prevents cheap Brazilian ethanol from competing with homegrown U.S. corn ethanol.
But the readily fermentable sugars found in sugarcane make it a far better ethanol feedstock than grain. Brazilian sugar ethanol gives an eightfold return on the fossil energy used to make it; American corn, on the other hand, only yields 1.3 times the fossil energy used. Brazil is now the No. 2 producer of ethanol, dethroned by the U.S. in 2005, but still leads in ethanol exports, sending some 900 million gallons of ethanol overseas last year, according to Reuters.
Brazil’s ethanol success and failures can teach the rest of the world a lot about biofuels. So who are the big Brazilian ethanol players? Who’s investing in the sector? And which biofuel startups are making Brazilian deals? Below, a primer:
Big Players:
Cosan SA: The largest grower and processor of sugarcane on the planet, Cosan crushed some 36.2 million tons of sugarcane into 326.7 million gallons of ethanol in 2007. More recently, the company made a move to buy all of ExxonMobil’s Brazilian distribution and service-station businesses for $826 million. Speaking at Stanford last November, a month after the company raised $1.2 billion via an IPO on the NYSE, Cosan CFO Paulo Diniz broke down Cosan’s $1.7 billion in revenue: 61 percent from sugar sales, 33 from ethanol sales, and 6 percent from selling the electricity generated by burning sugarcane byproducts. Diniz added that the company is developing genetically modified sugarcane that can be grown in various climates and could increase its production to “at least 150 or even over 200″ tons per capita from the current 85.
Petrobras: Petrobas still has significant petroleum interests but is also the largest buyer of ethanol in the world. Petrobras is an energy company; it doesn’t actually grow any sugar but buys it and sells the fuel through its distribution arm, Petrobras Distribuidora. According to Bloomberg, Petrobas plans to invest $600 million by 2010 to expand its ethanol exports. “The U.S. is the market where we would like to be,” Petrobras head Jose Sergio Gabrielli told Bloomberg. Petrobras also recently formed a partnership with Japan’s Nippon Alcohol Hanbai to export Brazilian ethanol to Japan.
Santelisa Vale: Brazil’s second-largest sugarcane and ethanol producer, Santelisa Vale recently sold its 50 percent stake in Tropical BioEnrgia — which was launched with plans for $1 billion of ethanol refineries — to BP Oil for $60 million. In the meantime, the commodities division of Goldman Sachs put more than $200 million into Santelisa Vale.
Crystalev: A subsidiary of Santelisa, Crystalev’s own operations are massive. In addition to being Brazil’s largest producer of renewable energy, the company says they produce 2 billion tons of sugar and 1 billion liters of ethanol each year. However, Crystalev’s operations represent only 8 percent of the total sugarcane crushed in Brazil. The company also recently partnered with California startup Amyrsis to develop renewable, sugar-based fuels including diesel, jet fuel and gasoline; they’re aiming to commercialize sugar-based diesel by 2010.
Startup Players Heading to Brazil:
Brazil doesn’t just tap the cane’s sucrose for ethanol. The country’s sugarcane crop also produces a considerable amount of bagasse, the fibrous leftovers and fodder for a growing number of cellulosic ethanol ventures that are finding Brazil to be a great place to set up shop.
Brazil Renewable Energy Co.: Founded by former Petrobras president Philippe Reichstul, Brenco, as it’s known, has A-list investors including Bill Clinton, Steve Case, Vinod Khosla, and film producer Steve Bing, and has raised nearly $150 million from Brazilian, American and European investors. The company is now working hard to become Brazil’s largest ethanol producer, with 14 mills under construction at a cost of $2.4 billion. While the company suffered some bad PR following accusations of illegal labor practices, the Brazilian Labor Ministry has lifted the operation restrictions and declared Brenco compliant.
KiOR: A joint venture between Khosla Ventures and Dutch BIOeCON, KiOR has signed on with Petrobras to work on its biomass catalytic cracking technology at the energy giant’s research center. Using catalytic pyrolysis, Kior “cracks” cellulosic biomass, like sugarcane slag, into a biocrude.
Amyris Biotechnologies: In a joint venture with Santelisa Vale-owned Crystalsev, Amyris plans to commercialize “advanced renewable fuels” including sugar-based gasoline, diesel and jetfuel. Called Amyris-Crystalsev Pesquisa e Desenvolvimento de Biocombustiveis Ltda, the JV will start with renewable diesel; it has contracted Santelisa Vale to provide two million tons of sugarcane crushing capacity and a test plant. With $90 million from an impressive list of Sand Hill Road investors — Kleiner, DAG Ventures, Khosla Ventures and TPG Ventures — Amyris is making lucrative deals on both sides of the Gulf.
Ethos Ethanol: Backed by biofuel-happy Khosla Ventures and GreatPoint Ventures, Cambridge, Mass.-based Ethos Ethanol has been pretty stealthy about exactly what it plans to do. Its web site says merely that Ethos plans to pursue sugarcane-based fuels “in areas of Central/Latin America and the Caribbean.”
International Investors:
With such a large market opportunity, you can bet that huge multinational corporations and investors are making Brazil part of their portfolios.
Goldman Sachs: Last July, Goldman put $210 million into Santelisa Vale to expand the company’s sugar mills.
Dow Chemical: Midland, Mich.-based Dow last year teamed up with Crystalslev to make polyethylene from sugarcane ethanol.
ExxonMobil: Cosan will be buying Esso’s Brazilian distribution network, but the oil company’s Chilean and Uruguayan distribution business is up for grabs and Cosan will likely again be bidding against Petrobras.
BP: BP entered the Brazilian biofuel scene with their initial $60 investment in Tropical Bioenergia SA and say they and their partners plan to invest $1 billion in two new ethanol plants. Ethanol consumption is starting to outstrip gasoline use and fixed gas prices keep petrol fuels more expensive than ethanol, all signs that fuel players in Brazil need to get into ethanol.
I just found out that although "interested and investigating..." Boeing is not on the same page with Valcent and others yet, producing oil, diesel, gasoline and jet fuel from Algae Biomass. They are using a rudimentary system for testing the reactions required with Algae to yeild other carbon-composite materials and oils. In other words, despite having huge funds and a brain-trust, they are WAY BEHIND.
International Energy Co. Ltd. and moreso, Sapphire Energy seem to be headed in the same direction. However, just today, Valcent signed a lucrative agreement with a large Australian firm 'Hydroganics' ($2.5 million USD plus stock options for over 2 years) to purchase, distribute and paritally own rights to the Vertigro Bioreactor technology for hydroponic vegetable and fruit growing applicatoins.
This is the same essential "bio-reactor" that make Valcent's oil or whatever purpose, automotive fuel or other industry applications.
This gives Valcent another horizontal move out into the market first, while furthering their fuel-from-biomass reasearch. Funding changes hands in a couple of weeks. I'd like to hear where Sapphire Energy is on this, but despite what looks to be a larger brain trust recruited and now employed there, they are offering far less info to the public at this time, and there is no public stock offering yet, so its easier to believe, they are still in the pure research stages, and despite greater in-house brain depth, they are behind Valcent to date.
Sincerely,
Terry Abrams
Thanks for your recent help on the Boeing articles. I also went and checked out Brentfly's Sapphire Energy company, it looks promising and they seem to have deeper research staff, but they are putting up less substantive content than Valcent is.
It will be interesting to see which companies will be delivering Gas out of Algae biomass first and foremost.
Terry Abrams
CEO, DOCS ETC, Inc.
www.docsetc.com
There is a perfect storm of events happening right now that create the possibility of a paradigm shift that is urgently needed. We have an angry citizenry due to pain at the pump, a presidential election on the horizon, and a man with a plan to dramatically and imminently reduce our dependance on foreign oil, and provide a bridge to future solutions, who has the resources, contacts, knowledge, wealth and "will" to get it done.
Please share this plan with your circle of friends, family and associates. Urge them to JOIN. As you know, it is simply like signing a petition. With large numbers of supporters, we can put pressure to bear on Congress to incentivize alternative and renewable energies, and insure that our future president will be a leader that will push for domestic energy solutions. JFK once said. "in the next 10 years we will put a man on the moon". He got it done. We need that kind of leadership on energy.
Time is of the essence. If gas prices retreat the public will forget the pain, and our moment may be lost. How frightening to be looking back and apologizing to our children that we could not get this done when we had the chance.
For more information:
Check out an informative video "Topeka, Kansas Town Hall Meeting": http://www.pickensplan.com/news/2008/08/04/video-of-the-topeka-town-hall
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