The American Clean Energy and Security Act of 2009 calls for $90B to be invested into clean energy technologies by 2025.

And, The Energy Independence and Security Act signed in December 2007, calls for 36 billion gallons of renewable fuels by 2022, of which 11 billion gallons must come from cellulosic, non-food ethanol.

Why do we bring up these seemingly random facts?  Perhaps you’ll remember us when you win Jeopardy with those pieces of trivia, or maybe it is…

Because our latest stock idea COULD BENEFIT GREATLY from these “facts”  Raven Biofuels (RVBF) is on a mission to become a world leader in creating environmentally responsible energy through the further development and commercialization of its leading edge biofuel technology that transforms biowaste into energy.

…And its principle focus is production and distribution of high quality fuel-grade cellulosic ethanol….that is “fuel made from organic matter”

So why are we so thrilled to alert our members to RVBF RIGHT NOW? Well, read on…

• With 9 U.S patents and 21 international patents, its technology has been tested and given conclusively positive marks for commercial operation…allowing it to convert cellulosic waste streams (like wood and agriculture waste) into high value ethanol and derivative furfural chemicals. (FYI – We found out that furfural is an very valuable industrial chemical that is used as a solvent in petrochemical refining and is used to create various lubricants)
• RVBF claims to have invested $24 million in Research and Development (R&D) over the years and has perfected the technology to such a state that it expects to build several bio-refineries over the next five years. Each biorefinery is being designed to produce an initial capacity of more than 10 million gallons per year (10 MPGY) of ethanol and high value furfural chemicals.
• Its planned project in Mississippi would use local wood waste as feedstock. Its second project to be located in British Columbia, Canada is proposed as utilizing pine beetle infested wood for feedstock. (This feedstock is readily available and unusable for other applications.)
• All of its production will come from cellulosic waste streams rather than expensive corn or sugar. Making renewable fuels from cellulosic materials can reduce the amount of carbon dioxide emissions by over 80%!

So what exactly is RVBF’s technology…and how does it work?

Well, it’s based on a two-stage dilutive acid hydrolysis process. Acid Hydrolysis and further proprietary technology can produce high value specialty chemicals from agriculture waste products, possibly reducing the production cost of ethanol below $1.00 per gallon.

It essentially works by breaking down bio matter, such as wood chips, corn stover, and sugarcane bagasse into primary sugar streams that are then converted into a suite of chemicals including ethanol. Check out the chart below for a clearer understanding of how this works.

RVBF’s management believes this technology is superior to other cellulosic production methods in use today.

Now check this out!

Just a few weeks ago, RVBF announced a Canadian partner to advance its technology and develop Canadian projects.

Under its proposed agreement with RVBF, Raven Biofuels Ltd. (the new Canadian company) will pay RVBF a fee to be negotiated for the exclusive rights to RVBF’s technology for Canada. RVBF will develop the technology with its Canadian partner to commercialize it in Canada.

RVBF has also contributed relationships and know-how for fibre supply and a proposed site to build the first commercial scale biorefinery in Kamloops, British Columbia, which will form a Joint Venture with the Kamploops Indian Band to be called the Tk’emlups Biorefinery.

John Sams, President of RVBF, believes “Having a Canadian Partner will accelerate commercialization of Raven’s technology and ensure the success of the Tk’emlups project. There are many attractive elements to the Canadian project that will be appropriately managed and operated from a local level. Having the right people on the ground is the key to success.” To read the full story Click Here

So what do we see in RVBF’s price chart?  Well, we love it…

• Having reached an intermediate-term high of around 16 cents earlier in the month, RVBF had pulled back to as low as 7 cents—a nearly 60% discount to its value just a few short weeks ago.
• Downside volume is declining as the price goes lower… suggesting seller exhaustion near the 200 day moving average of 6 cents.
• The stochastics, a far more useful indicator in non-trending stocks like this one, is signaling a DEEPLY OVERSOLD condition and suggests a near-term bounce is possible. The recent crossover of the shorter average (%K) back above the longer average (%D) adds additional evidence of an imminent near-term rally.
• The MACD, while technically in a downtrend, may be in the process of bottoming as evidenced by its stabilizing momentum histogram. (We also place less emphasis on the MACD during consolidating or non-trending stocks.)

2010 could be an exciting year for biofuels…and with RVBF’s Proven and Patented technologies; we think this company could ultimately be a leader in the space.

So do your OWN homework on this one and add it to your watch list RIGHT NOW.

We think this one has a lot of potential …and don’t want any of our members to miss out on the possibility of future price gains.