Monday, July 1, 2013

Yippee KIOR Ships Another Truckload Of Gasoline

The great hope for cellulosic fuel shipments in the USA got a boost on June 28 when Kior shipped a first truckload of gasoline from their wood to fuel plant in Mississippi.  Their last and only other truckload which was diesel was shipped in March.

This is Kior’s press release celebrating the “achievement”

The US DOE through its EIA has surreptitiously lowered government expectations of cellulosic fuel shipments for 2013 from the EPA’s 14 million gallons of ethanol equivalent to only 5 million gallons.

The Green Machine forecasts that less than 250,000 gallons of cellulosic diesel or gasoline will ship from KIOR in 2013 and that Ineos the other cellulosic hopeful will ship less than 250,000 gallons of ethanol this year.  Ineos has yet to report any shipments even though their plant in Florida “started-up” last Halloween.

Ineos will tell the US EPA this Halloween that we have been tricked.  KIOR will tell their shareholders a bunch of cockamamie in the next earning call.  Remember in the last earnings call the CEO said the following:
"Consistent with our previous guidance, we expect that total fuel production during the second quarter will range between 300,000 and 500,000 gallons, keeping us on track to fall within our projected production range of 3 million to 5 million gallons for 2013."

The good thing about Kior stumbling is that Vinod Khosla has to keep loaning the failing company money to keep the thermodynamic charade going.  Khosla already has two black eyes in cellulosic fuel.  These are Cello and Range.  I think Kior will help us strike out Khosla and put him back in the minor leagues of Green Tech.  

Ineos Bio is part of a very large chemical corporation with $43 billion of revenues and 15,000 workers.
Ineos  will lick their wounds in Florida and simply move onto making ethylene and other petrochemicals the old fashioned way.