Progress continues on development of the bio-refinery as upgrades are made to the various processes involved with the project.  Recently, trial runs using different operating conditions resulted in excellent conversion rates of biomass to bio-oil.  Upgrades will continue over the next few months to improve the bio-product quality and increase overall production of the facility.  During the winter months of 2009-2010, feedstock trials will be performed to determine the conversion yields of various cellulosic feedstocks including switchgrass, miscanthus, and several others.  We anticipate that, in the spring of 2010, we will initialize planting of switchgrass on lands belonging to cooperators.  We also anticipate installing small plantings of miscanthus for research purposes on private lands in different sections of Pittsylvania County.  Research and development will also continue on various other plants that show promise as feedstock material.  If progress continues at its current rate, we can confidently anticipate that construction of the first commercial facility will begin within the next two years.

Development Plan

 Our Development Plan is guided by a 3 phase roll-out process. We are currently in Phase 1 (not for proft), the Demonstration Phase.  We have formed an initial Hybrid Co-Operative with 50 Producer/Members.  These Farmers are growing a variety of Feedstocks that we harvest and use to produce our Bio-Crude and Bio-Coal. This phase has been funded by the Virginia Tobacco Commission.

 In Phase 2 of the project we will move into initial commercialization.  During this Phase we will expand our network of producers, creating new Hybrid Co-Operatives.   Phase 2 will be partially funded by seed-investment from CIT (State of Virginia, Center for Innovative Technology).  We will also secure a 2nd round of investment, and begin to work with the companies that will ultimately purchase our Bio-Crude and Bio-Coal products.

In Phase 3 we will move into advanced commercialization, enlisting new producers and customers.

We believe that this controlled growth schedule is vital to our success, enabling us to control growth and to ensure the quality of our processes, our business model and our products