Company Ethanol Produce That

CHARLOTTE, NC – NewGen Technologies, a publicly-listed company that develops alternative fuels technology, has lined up $18 million in debt financing. The company, which stated it would use the money to upgrade its North and South Carolina facilities, as well as for general capital endeavors, reached the debt deal with Greystone Business Credit. Greystone also received an option to purchase 250,000 NewGen shares at one dollar each. NewGen produces fuel products and technology mainly derived from excess petroleum sources. The company's mission is to reduce the impact petroleum has on the world by developing cleaner and more efficient fuels and producing alternative fuels such as Ethanol-based E85 and Biodiesel-based B20. www.newgenholdings.com .

On August 7, Sharesleuth.com, the investigative journalism venture launched earlier this year by billionaire bad boy Mark Cuban, claimed its first victim: Xethanol. Apparently, Xethanol was going around telling investors that its alternative fuel solution had the potential to become a game-changing innovation for the energy sector. Jumping on Wall Street's ethanol bandwagon, the company claimed that it was able to turn wood chips, corn stalks and paper sludge into cheap alternative fuel. However, Xethanol's claims turned out to be nothing more than an elaborate innovation hoax, proving that it's best to do your homework before investing in overheated, speculative markets such as the one for ethanol companies.

An extensive Sharesleuth.com investigation found no evidence that Xethanol had produced significant quantities of ethanol from any raw materials.

THE Australian biofuels sector is still continuing to attract big money despite the failure last week of the Global Ethanol Holdings IPO to raise $470 million to build plants in the US. Closer to home, investment bank Babcock & Brown is looking to build a $US100 million ($130 million) ethanol plant near Leeton in southern NSW.

The plant would have the capacity to produce 150 million litres of ethanol a year that would be manufactured from wheat and barley, and supplied to oil refiners in Sydney and Melbourne.

B&B has signed a memorandum of understanding to lease out land from cattle company Rockdale Beef which would take by-products from the plant such as distillers grain. The project is at the feasibility stage, but is expected to secure government approvals and final go ahead within the next six-to-nine months.