Product Development

The primary product that Momentum intends to produce is pure biodiesel (B-100).  Momentum also intends to sell the glycerin that is produced as a byproduct of its process.  Glycerin is a primary component in the manufacture of soap.  Momentum is also committed to providing other alternative fuels, but Momentum has no current plans to produce and market products other than B-100 and glycerin.

If Momentum can successfully complete plant construction and is successful with the plant acceptance testing, management believes Momentum will be positioned to sell pure biodiesel and the by-products of the production process to distributors, jobbers, and local and governmental fleets located throughout Texas.  Momentum intends to solidify its market presence in Texas through the sale of B-100.  Management believes the demand for biodiesel in Texas is growing and that Momentum is in a position to profit from that growing demand.

Momentum is establishing relationships with Texas and national distributors interested in purchasing biodiesel.  In addition to marketing to local distributors, Momentum intends to directly market its product to government fleets and metropolitan public transport fleets.  The Energy Policy Act requires these fleets to earn alternative fuel vehicle credits, which can be accomplished by purchasing biodiesel.

While Momentum’s initial focus will be to efficiently operate the La Porte plant at its planned capacity, management is looking for additional plant sites in the Gulf Coast region.  The current strategy is to identify and secure additional production sites which are adjacent or co-located with marine fuel terminals.  This strategy will allow Momentum to take advantage of waterborne logistics for delivery of feedstock and delivery of finished products, including access to the expanding European marketplace.  Biodiesel finished products must eventually converge into the traditional fuel supply chain; access to terminal storage and integration into the domestic fuel pipeline and fuel terminal infrastructure is a key consideration of liquidity and marketability of biodiesel.  Momentum’s Gulf Coast business strategy suggests a strong alignment with the existing infrastructure (terminal and storage systems) to secure efficient and economical access to customers.  Momentum will focus investments and partner relationships to secure a direct intersection with customers and marketers working within existing fuel infrastructure.