TWST: May we start with a short overview of your company?
Mr. Evans: GreenHunter Energy is the only publicly traded renewable energy company in the United States that has a portfolio of alternative energy investments, which include wind, biomass and biodiesel.
TWST: What's your current area of emphasis?
Mr. Evans: Those three lines of business. We have wind opportunities in the states of Montana, New Mexico, California, Wyoming, Texas, and the People's Republic of China. We have two biomass projects, one in Brawley, California and one in Telogia, Florida. We have the nation's largest biodiesel refinery located on the Houston Ship Channel.
TWST: Would you bring us up to date as to the biodiesel refinery that was hit by Hurricane Ike not very long ago?
Mr. Evans: We actually bought the location in April 2007. We put about $65 million into the refinery. We had a grand opening on June 2, 2008, and went operational in late July. We were hit by Hurricane Ike in September after having achieved about 65% of our 105 million gallon per year throughput capacity. The hurricane actually went right over the refinery, knocked us out. We were anticipating about eight feet of water — that was the 100-year flood plain — and we ended up getting about 14 feet of water. We had damage done predominantly to electrical equipment and to lots of pumps and motors. We do have sufficient property insurance. We have made our claims and have been fixing the refinery, anticipating to be back in operations within the next two weeks.
TWST: Where do you see the future of biodiesel? Should we see a continued drop in energy prices? Will there be sufficient government incentives to continue projects in alternative energy?
Mr. Evans: I have been in the oil business all of my life. I have no doubt that we won't see much more of a drop in crude oil prices. OPEC is already talking about cutting production as much as 2 million barrels a day. So I think we're at a floor today. The Energy Bill that was passed several weeks ago and signed into law by President Bush, to me it was a tremendous indication for this industry. We got tax credit extensions in all three lines of our business — wind, biomass and biodiesel. Neither presidential candidate is against this sector and I think the American public is going to insist on it, so I think this area has a bright future.
TWST: Give us the scenario for the company, a realistic picture of GreenHunter Energy, let's say 24 months down the road?
Mr. Evans: I think you'll see a company with assets in excess of $1 billion and revenues in 24 months of $1 billion to $1.2 billion.
Interview with GreenHunter Energy
Nov 12 2008, 06:04 | about: GRH