Easy Energy Systems, Inc.

Description

The mandate is not on ethanol producers, but rather on fuel producers. Here is an example: “Petroleum Company” (PC) last year sold 20% of the gasoline in the United States. That means that this year, they are responsible for purchasing 20% of the RINS. Therefore, if the mandate was 10B gallons, the “PC” would be responsible for blending and selling 2B gallons, or 20%. This is where the penalty comes in; if the “PC” is not able to purchase 2B gallons, and only can buy 1.5B, then they would need to purchase the remaining 0.5B RINS (gallons) from the Environmental Protection Agency, usually at a much higher price than the market would bear. This keeps the market strong for producers, as there is currently a shortfall projected of some of these RIN types.

On April 2, 2012 the Environmental Protection Agency (EPA) approved 20 companies to begin blending E15. Since that approval it appears several additional companies have also been cleared and more are in process. Below is list of the approved companies from the EPA website. There are two factors driving the approval. The first is the move to combat increasing gasoline prices domestically, while the second is more significant in the industry as it is the beginning signs of support for E15. While blends up to E85 are available throughout the mid-western US, It is more realistic that the blends grow along with the mandates. Easy Energy Systems sees the approval of the E15 blenders as the first of many steps as mandated volumes are met. In addition to little known companies some of the largest producers such as ADM, Cargill and one of POET’s entities are present on the list. This is significant in the commitment to blend E15 as these are three of the top five producers in the US.

Although referencing the US DOE Supply Forecast and Analysis done in 2005 7 , the supply chain challenges regarding biomass feedstock are as prominent today than ever before. The November 2011 article “The Round and Square of it” in Ethanol Producer Magazine makes the point clear. From the payment to the grower, harvesting and transportation the available radius to a large scale plant shrinks to approximately 25 miles 8 . Now consider processing the feedstock, storage, and integrating the feedstock into the system configuration and the challenges become even greater. The micro biorefineries are located at the source of the feedstock. Consider the challenges facing the military as a whole 9 . In times of war, often the cost of guarding the fuel exceeds the cost of the fuel. Micro biorefineries could provide a unique solution to this challenge, by creating fuel on remote bases 10 . Regardless of how the large scale plants ultimately solve the supply chain issues, micro biorefineries will always have a place in smaller and emerging markets – and these modular biorefineries are scalable to meet the growing demand.

In early 2011 we opened offices in Scottsdale, Arizona driven by an executive team positioned to take our innovative products and services to the global market. Our mission is to "Fuel the World ® " becoming a global leader in a variety of small-scale modular biofuels through the distribution of the Modular Energy Production System (MEPS ® ).

At EES, what happens throughout our partnership or after a sale is as important as when the process first began – even more so now as our customer's and our business is on the line.

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