- Joined
- 14 February 2005
- Posts
- 15,099
- Reactions
- 16,887
So far as I'm concerned this company is too focused on newsletters, promotional stunts and so on and not sufficiently focused on actually producing a product they can sell (that is, bringing some money in).
Remember the "Diesel Dash"? It made a nice point yes, but what was the commercial point of it really? Why promote that your fuel works, when you don't actually have any fuel available to sell? The only point I can see is to draw attention to the company itself and thus encourage investors to buy shares. It's not as though anyone who saw the vehicle has the opportunity to purchase the product themselves.
Wouldn't it make more sense that at this scale of operation they just sell any diesel etc they make to someone like BP, Caltex, Shell or whoever as a bulk product and not worry about the marketing? I know that the major oil companies have certainly agreed to take the production of minor fuel producers in the past and blend it with their own stock. So far as technical requirements are concerned, obviously they'd insist on proper lab testing but they do that with the output of their own refineries anyway so it's no big deal.
Same with the raw syngas from UCG. If it were me, I'd start by just selling the stuff "as is" as fuel to power stations or a large factory etc for which it is quite suitable. That would get cash coming in. Worry about the liquids production and/or building their own power stations later. For the moment, just be the upstream supplier of an alternative fuel and sell it "as is" to whoever you can find to buy it.
I can assure you that management of thermal power stations (those that run on coal, gas or oil and which account for 90% or so of all power generated in Australia) are always willing to talk to anyone who suggests the possibility of cheaper fuel since fuel is by far their largest operating expense.
I like the technology this company has that is for sure. But as much as I like the idea, I just don't trust that management is sufficiently focused on running the business as such.
Remember the "Diesel Dash"? It made a nice point yes, but what was the commercial point of it really? Why promote that your fuel works, when you don't actually have any fuel available to sell? The only point I can see is to draw attention to the company itself and thus encourage investors to buy shares. It's not as though anyone who saw the vehicle has the opportunity to purchase the product themselves.
Wouldn't it make more sense that at this scale of operation they just sell any diesel etc they make to someone like BP, Caltex, Shell or whoever as a bulk product and not worry about the marketing? I know that the major oil companies have certainly agreed to take the production of minor fuel producers in the past and blend it with their own stock. So far as technical requirements are concerned, obviously they'd insist on proper lab testing but they do that with the output of their own refineries anyway so it's no big deal.
Same with the raw syngas from UCG. If it were me, I'd start by just selling the stuff "as is" as fuel to power stations or a large factory etc for which it is quite suitable. That would get cash coming in. Worry about the liquids production and/or building their own power stations later. For the moment, just be the upstream supplier of an alternative fuel and sell it "as is" to whoever you can find to buy it.
I can assure you that management of thermal power stations (those that run on coal, gas or oil and which account for 90% or so of all power generated in Australia) are always willing to talk to anyone who suggests the possibility of cheaper fuel since fuel is by far their largest operating expense.
I like the technology this company has that is for sure. But as much as I like the idea, I just don't trust that management is sufficiently focused on running the business as such.
