Zeev,
You're answer was as good as any I could have provided. This is what I like to see. More people who have the answers and think for themselves. You've done your homework and put the peices together.
DHEC has always been one of the necessary evils that GRNO has had to face. Given the track record, as I understand it, for Thermal Oxidation, the air quality/emissions has been considered a formality for GRNO. TO is a widely proven technology that was developed the US Govt, and licensed out to private industry.
The real concern with GRNO has been the past antipathy between the local DHEC office and Bill Carraway. For those who don't realize it, DHEC was the primary reason that GRNO is two years behind in its business plan and the sole reason that any of have had a chance to invest in it as publically traded company. The last time DHEC forced Bill to move his operations and caused him to run out of money, placing the company in dormancy until now. Believe me, the big guns have yet to be drawn should it happen again that DHEC prove an unjustified obstacle to commencement of operations. I have a stake in that processor in Charleston, and I have a few doors that I can knock on here in DC.... :0)
As for cash, you pretty much stated all there is to know. However, to amplify the issue, let me remind everyone that GRNO deals solely on a cash and carry basis, 1/3 up front, paid in full before delivery. Thus, there is little debt to be carried, no letters of credit to mess with, a strictly cash business. Why can he ask for these terms? Because he has a product that can pay for itself in less than 2 years of operation and then generate well over $1.5 million in revenue/profit each year. The economics are compelling and I find a great analogy from "Field of Dreams"... If you build it, they will come... :0)
As for the issue of building components of the processors elsewhere, Bill is a strong beleiver in out-sourcing everything that is non-proprietary, (minus items that are at risk of revealing "the family jewels"). These components include the TO/heat exchange section, building the thermal cracking vessel, and just about everything else. His crew in Charleston then assemble the components there. They are packed shipment containers and the wait for the final "check clearing" from the customer. At that time the unit is shipped and installed per a second contract with GRNO.
Hope this helps...
Regards,
Ron |
