11 Good Energy
In September 2008, Surge invested $275,000 into 11 Good Energy (11goodenergy.com) developer of G2 Diesel, a next generation biodiesel, through the purchase of a Convertible Note bearing interest at 8% per annum and due June 30, 2009. The Note is redeemable or convertible into 11 Good Energy common shares until June 30, 2009 at Surge’s election, and also contains an equal number of common stock purchase warrants exercisable until June 30, 2010. Surge also received 500,000 shares of 11 Good Energy as part of the transaction.
11 Good Energy was formed in May 2007 to further develop a revolutionary new kind of biodiesel- called G2 Diesel – that is comprised of soybean oil and ethanol derived from corn. While conventional biodiesel contains as much as 20% non-agricultural petroleum derivatives such as methanol, G2 is 95% to 99% agricultural and can be likened to a food product.
G2 will address many of the concerns raised by conventional biodiesel and give target markets a more valuable product. “Our fuel burns cooler and cleaner, produces fewer emissions, and reduces carbon build-up in engines, making it better for both the environment and your engine.
11 Good Energy has been testing G2 on an in-service 1962 EMD diesel locomotive engine since October of 2006, and reports an 88 - degree decease in exhaust temperature and noticeably improved engine operation.
The G2 process is also safer for the environment than the industry standard, required no water washing of the fuel and thus producing no wastewater. And because G2 is ethanol – based, the risks associated with handling toxic methanol are eliminated.
Currently pursuing relationships with trucking and river fleets, rail companies, and electric – generating power plants, but haven’t ruled out organic growth.
In an effort to move the U.S. toward greater energy independence and security, the Senate approved H.R. 6 by an 86-8 margin. The bill includes a Renewable Fuel Standard (RFS) program that will require U.S. companies to use 500 million gallons of biodiesel by 2009 and 1 billion gallons by 2012. Today, only 250 million gallons are used.