Tuesday, April 20, 2010

Welcome to the World of Green Gas

Research houses have also been the beneficiaries of the Department of Energy renewable fuels grants. The Gas Technology Institute (GTI) was awarded $2.5 million to help pay for preliminary engineering design for a “novel” process that will produce green gas using woody biomass or algae. GTI must match the grant with $625,000 of its own resources.

With so many companies already producing green gas or nearing commercial stage with active green gas demonstration products, it is hard to understand why the DOE would sink even the nominal sum of $2.5 million into yet one more R&D project.

There is no investment opportunity here. GTI is a private, non-profit research and development organization. GTI claims a three-fold mission: 1) expanding the supply of affordable energy, 2) ensuring a safe and reliable energy delivery infrastructure, and 3) promoting the efficient use of energy resources.

GTI has been around for over half a century, which means that the group cut its teeth on promoting the use of fossil fuels. GTI’s board of directors is composed of movers and shakers in the oil and gas industry.

GTI is new to the world of green gas. Renewable energy is not listed among its research areas as yet. It is interesting that the group has to be enticed to the table with free money to get it mobilized to pursue a renewable energy project. A decade from now we expect the oil and gas industry at its research arms to have an entirely different orientation.

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.

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