SSPC...from the recent Q: SIGNIFICANT EVENT--
Possibly the most significant event occurring during the quarter covered by this report was the alliance and understanding established between Southern States Power Company and Imperial Western Products (IWP). The largest operating plant of IWP, which has as its core business the processing of contaminated cotton seed and processing of spent oils for use and blending in animal feedstocks and for other uses, is located in Coachella, adjacent to India, in the desert region of Southern California. This successful company has been working with the Company to increase its capacity to process and refine yellow grease and other oils used as a suitable feedstock from which to convert to Biodiesel, and has agreed to lease a portion of its plant facility to the Company for construction of a Biodiesel plant which will have the initial capacity of producing approximately 3 million gallons of this Biofuel annually.
This alliance is very valuable to both companies, for IWP will be able to process and sell a greater amount of yellow grease and oils than previously processed, and Southern States Power will be able to build a plant in close proximity to its feedstock source, thereby eliminating the costs associated with shipping and transporting its basic feedstock supply. IWP has also agreed to furnish its on site resource to assist in installing and constructing the plant facility for the Company. This location is also very beneficial to the Company, for IWP has allowed the Company to use an existing, equipped laboratory for all of its chemical testing and formulation, and the Company is able to operate its plant under IWP's existing permits.
Imperial Western Products has additional plant locations outside Phoenix, Arizona, and Fresno, California. These locations offer ideal sites to the Company for additional plants, as they will enable the Company to locate its production plant next to the feedstock source, and also close to customers of its OxyG B-60(R) Biodiesel fuel. |
