All Fuels & Energy C (AFSE)

Description:

All Energy Corp was incorporated on October 5, 1994, in the state of Delaware as Cable Group South, Inc. In November 1998, the Company changed its name to Softnet Industries, Inc., and in June 1999, the name was changed to ICrystal, Inc. In May 2007, the Company changed its name to ALL Fuels & Energy Company. With the condition of the ethanol industry becoming weakened over the past two years, the Company began to pursue certain ethanol-related opportunities through its Ethanol Group. However, it remains its goal to become a producer of ethanol and its co-products in the United States, that is, to become a producer of at least approximately 500 million gallons of ethanol annually. During the first quarter of 2010, the company identified at least three existing ethanol plants and is attempting to acquire it. 2008 and 2009 were years of stress for the ethanol industry. The ethanol industry continues its recovery from the period of historically-high oil prices occurring throughout most 2008. The industry recovery has been made more difficult by the recent downturn in the U.S. economy and the associated chaos in the national and international financial markets. In response to the ethanol industry's high-stress state during 2008, the Company created a business division known as "ALL Fuels Ethanol Group". In 2009, the Ethanol Group generated approximately $8,000 in revenues. Ethanol is marketed across the U.S. as a gasoline blend component that serves as a clean air additive, an octane enhancer and a renewable fuel resource. It is blended with gasoline as an oxygenate to help meet fuel emission standards, to improve gasoline performance by increasing octane levels and to extend fuel supplies. In the dry-mill process of converting corn into ethanol, each bushel of corn yields approximately 2.8 gallons of ethanol and approximately 18 pounds of distillers grains. A co-product of dry-mill ethanol production, DDGS is a high-protein and high-energy animal feed that is sold mainly as an ingredient in beef and dairy cattle feed. WDGS is similar to DDGS, except that the final drying stage applied to DDGS is bypassed and the product is sold as a wet feed. Corn oil could be produced as a co-product of ethanol production by installing equipment to separate the oil from the distillers grains during the production process. The Company's management would seek to mitigate its exposure to commodity price fluctuations by purchasing a portion of its corn requirements on a fixed price basis and by purchasing corn and natural gas futures contracts. During the early years of its operations, the Company to have agreements with one or more companies for the marketing, including billing, receipt of payment and other administrative services, for all of the ethanol that the Company produce. The Company faces tough competition from domestic and foreign players. The largest U.S competitors are Archer-Daniels-Midland Company, POET, LLC and Valero Energy Corporation. Its ethanol production operations would be subject to different federal, state and local environmental laws and regulations, including those relating to the discharge of materials into the air, water and ground; the generation, storage, handling, use, transportation and disposal of hazardous materials; and the health and safety of its employees.