teRE: RE: Profitability...Late last week this stock turned the corner and now seems poised to move much higher.
Bids firmed up and market depth showed fewer willing to sell below
.30.
The 2011 Federal Budget will soon get approved which contains grants for biofuel companies like Lignol.
As Rock points out, looking at Lignol as a producer of lignin value added derivatives makes lots of sense and enables the financial aspects to be more simply defined.
One can then look at ethanol as a byproduct credit.
Already we can see from those two technical reports that from a pure lignin perspective , it looks quite feasable to be profitable on those products alone.
The ethanol credit which is currently about $3 per gal would pay for the operating costs of producing lignin products.
Most corn-based ethanol producers are struggling to be profitable , even at high oil prices.
A shift to the Lignol biorefining model seems inevitable.
Forest wastes, pulp and paper wastes are much cheaper as feedstock and high performance lignin derivatives are higher priced products than ethanol.
This means biorefineries that have a much greater chance of being profitable, more independent of the price of oil and diversified in product sales.