Leading Technical Indicators Show that New Generation Biofuels (OTC:NGBF) Could Be on the Verge of a Huge Breakout!!MACD, Stochastics and RSI Indicators All Point to (NASDAQ:NGBF) Being OVERSOLD and Poised for a Big Turnaround!
Technical Indicators Show that NGBF is Extremely Oversold and Undervalued!
In addition to technicals that indicate this is an ideal time to get into NGBF, here are some highlights of how New Generation Biofuels is set to transform the Biofuel Industry!
NGBF’s Proprietary Technology Has Led to Significant Competitive Advantages
The demand for Biofuels is skyrocketing worldwide because when compared to traditional fossil fuels, they have the ability to reduce greenhouse gas emissions and environmental pollution while promoting energy independence through a sustainable, renewable future energy supply.
While “First Generation” biofuels can provide the benefits mentioned above, they have one significant Drawback – Their feedstocks may divert food from human use and contribute to price increases and food shortages, particularly in lesser-developed countries.
The reason that NGBF’s “Second Generation” biofuels are superior is because they are precision blended products made from new or recycled plant oil or animal fat feedstocks and without using a complicated chemical reaction producing by-products. In fact….
NGBF has commercialized a patent-pending process to economically produce a renewable biofuel that can be used as a replacement for diesel, #2 heating oil, kerosene and other fuel oils representing a staggering market opportunity for the Company!
The Biofuels Industry and Market Trends
Biofuels are solid, liquid or gas fuels produced from renewable, recently living biological resources, such as plant biomass. They are perceived to have a number of potential benefits over fossil fuels including the ability to reduce greenhouse gas emissions and environmental pollution, promote energy independence through the growth of domestic energy sources, increase rural development and establish a sustainable, renewable future energy supply.
“First generation biofuels,” such as ethanol or biodiesel, use conventional technologies to produce fuel from crops high in sugar, such as sugar cane or sugar beets, or high in starch, such as corn or maize, or from crops containing high amounts of vegetable oil, such as soybeans or palm oil, or from animal fats. The growth of first generation biofuels has been criticized because of perceptions that their feedstocks may divert food from human use and contribute to price increases and food shortages, particularly in lesser-developed countries.
“Second generation” or “advanced” biofuels use newer technologies to produce fuel from food crops, non-food plants and waste vegetable oil sources. The Company calls its biofuel “New Generation Biofuel” because it can be produced using their less complex, proprietary blending technology to derive fuels from both food crops like soybeans and non-food sources such as recycled vegetable oil.
Biofuels Market Size and Growth
The Energy Information Administration (“EIA”) has projected that the use of alternative fuels, such as ethanol, biodiesel and coal-to-liquid, will increase substantially as a result of the higher prices projected for traditional fuels and the support for alternative fuels provided in recently enacted federal and state legislation.
According to a recent report, direct economic output from the advanced biofuels industry, including capital investment, research and development, technology royalties, processing operations, feedstock production and biofuels distribution, is estimated to rise to $5.5 billion in 2012, $17.4 billion in 2016 and $37 billion by 2022.Government initiatives are expected to contribute to this growth. According to a 2008 study performed in connection with the legislation, the economic impact of increasing renewable fuels production to 36 billion gallons between 2008 and 2022 would include:
- Adding more than $1.7 Trillion to the U.S. Gross Domestic Product
- Generating an additional $436 Billion of Household Income
- Supporting the creation of as many as 1.1 Million new jobs
- Generating $209 Billion in new federal tax receipts
NGBF's Market Opportunities
New Generation Biofuels believes a significant market opportunity exists for its biofuel in three target market segments that consume approximately 15 billion gallons of fuel per year:
Power Generation - The power generation sector consumed approximately 2.2 billion gallons per year of distillate and residual fuel oils, according to the estimates available from the Energy Information Administration. This sector includes “peaking” power plants eligible for government renewable energy credits and constrained by emissions limitations.
Commercial and Industrial - This sector consumes approximately 6.4 billion gallons of distillate and residual fuel oil per year that could switch to our biofuels, according to the estimates available from the Energy Information Administration. This segment includes large institutional customers like state government buildings, hospitals and sewage treatment facilities that are taking a leadership role in reducing greenhouse gases.
Marine - According to the estimates available from the Energy Information Administration, diesel fuel consumption in the marine market is approximately 6.3 billion gallons per year and includes commercial and private boats, such as pleasure craft, fishing boats, tugboats, and ocean-going vessels, including vessels operated by oil companies. This sector is exploring renewable fuels due to tighter emissions standards and restrictions on cruise liners idling in port.
Key Advantages of NGBF’s Biofuels
- NGBF’s biofuel is ready to use in industrial applications without mixing or blending with other fuels, equipment modification or substantial loss of performance.
- NGBF’s biofuels can serve as a complete fuel replacement wherever distillate or residual fuel oils are used today.
- NGBF has the flexibility to deliver biofuels directly to the end user customers or to license the technology to customers for manufacturing our biofuels for themselves, without relying on distributors or other intermediaries.
- NGBF also has the flexibility to blend our biofuels with other fuels, such as diesel, depending on the needs of the customer.
- NGBF’s biofuels are renewable “carbon neutral” fuels with virtually no sulfur emissions and minimal net carbon dioxide emissions. Their biofuels have demonstrated reductions in nitrogen oxide emissions of 40% or more in utility scale.