Friday, September 4, 2009

GreenHunter Energy Inc. (GRH) Signs Long-Term Biomass Power Deal, Houston Operation Continues to Develop

Finding footing in a new world of energy consumption is a difficult task. What will sell and work is thought to be understood but can sometimes turn out to be a “dud”. Time is the key. Maybe the right timing has yet to come. In this regard, diversification can help. Maybe this product idea has yet to find its time, but that one is right and ready to profit. A company that understand the general concept and spreads its resources in an efficient way is one that may coast along today, but be ready to explode with profit tomorrow.

GreenHunter Energy Inc., a generally green energy producer, works to produce energy from sources considered to be environmentally “neutral.” Among these sources are biomass, wind, solar and biofuels. The company owns and operates plants in Wyoming, Texas, California, New Mexico and Montana.

Although there are several appealing profit opportunities to the company moving forward, its biomass unit appears to be one of the first to really be paying off. In recent days, the company has announced long-term contracts with an Imperial Valley irrigation, CA district for a 20 year power supply opportunity. The contract explains annual increases in the price structure of the deal and indicates a solid and stable relationship. From a general perspective, however, the more important aspect of the deal is the ability of the company to maintain current and future development plans. The 20 year agreement will also find 100% of output being sold so other aspects of the company’s efforts can be focused on.

Beginning in the wind farm category of green energy, the company has been working to enhance its biomass operation in the Houston, TX region. Expansion of facilities is the real trend at the present time and looks to be continuing (no confirmation.) This expansion is not to suggest an exclusion of other green technologies, but rather an expansion where the company feels there is more profit opportunity.

In a general sense, the market for biomass and biofuels has been within profitable margins, although in recent quarters price flux has been of a certain concern. Taken as a whole, however, the company does appear to have a solid mix of green business that will pay off as the country finds its footing in the green energy world of the future.

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