Small Cap Strategist is published by Crystal Equity Research an independent research resource on small capitalization stocks. Follow along as we discuss the most recent trends in the small-cap sector, investigate interesting companies and pan a few not-so-promising stocks.
commercialization” are the words Primus
Green Energy uses to describe its use of natural gas as a
feed stock for transportation fuel.The
company promises to convert to biomass such as wood pellets or Miscanthus as
soon as its gasification technology is perfected.I realize it is popular to characterize
natural gas as a green energy source, but I am reluctant to take that
leap.Natural gas is after all a fossil
fuel derived from the same dead plant matter that is providing us with coal and
a business standpoint, the natural gas strategy seems quite clever for
privately-held Primus.So many renewable
energy companies have had to close their doors because of inadequate capital to
support development and commercialization of their technologies.Primus could benefit greatly from early stage
sales of fuels it derives from natural gas.
is perfecting a process to turn synthetic gas into liquid gases that are ready
to distribute in conventional pipelines and transport vehicles.Syngas generation is nothing new, but Primus
claims its syngas has a higher ratio of hydrogen to carbon monoxide.Primus calls its process “syngas-to-gas” plus
because potential end products include jet fuel and aromatic chemicals as well
of Primus has promised a commercial stage plant this year.Confirmation that ground has been broken has
been slow in coming.At least a pilot
plant in New Jersey has proven the merits of the company’s biomass gasification
and its natural gas reforming technologies.However, production capacity at the pilot plant has been sufficient only
for testing purposes.
the meantime, Primus is keeping busy with a small-scale version of its natgas
reforming process. At the beginning of
June 2014, Primus announced the availability of its STG+ technology for use on stranded
gas flared at oilfields.The gas would
otherwise go to waste, but through the Primus process can be turned into liquid
gas usable at the oilfield.It has to
present a very economical solution to an otherwise wasteful and environmentally
damaging practice of simply burning stranded gas.
did not go into business to become an oilfield services company, but certainly
this creative way to use its STG+ technology could put the company right in the
middle of it.Primus may not have yet
produced any renewable energy itself, but it may end up putting a little ‘green’
on fossil fuel.
Neither the author
of the Small
Cap Strategist web log, Crystal Equity
Research nor its affiliates have a beneficial interest in the companies