SOURCE: Green Chip Stocks

December 14, 2006 14:17 ET

US Military Taps Publicly Traded Ethanol Tech Firm for New Energy Strategy

BALTIMORE, MD -- (MARKET WIRE) -- December 14, 2006 -- On February 19, Ethanex Energy, Inc. will meet with top military brass to come up with a way to help the DOD meet the responsibilities of the Energy Policy Act. And according to one analyst, this could result in a massive spike in the company's share price.

The market hasn't been kind to ethanol stocks since the sector took a nosedive this past summer. But it hasn't stopped Jeff Siegel, managing editor of from claiming, "The ethanol market still has a lot of steam behind it."

When we talked to him in October, Siegel told us he expects ethanol stocks to get another short-term boost in early 2007... as the price at the pump inches back towards $3.00. But in light of a new, Democrat-controlled congress, he now says, "Democrats have a clear renewable energy agenda in place. And this agenda will translate into a longer, more sustainable boost for renewables in the next two years. Especially ethanol."

Siegel argues that the logic behind this is simple. He says, "All energy is subsidized. And the bigger the influence in Washington, the bigger the honey pot. Big Oil gets the lion's share. But the agricultural sector has just as much influence in Washington as their petrol-pushing counterparts.

"And the next wave of ethanol momentum," Siegel says, "is already happening. Only this time it's less about ethanol and more about technology.

"The ethanol sector is no longer an infant. The government has mandated its existence, and the market continues to dictate its growth. Increased competition is now forcing the consolidation of the market, and only those companies that can produce the stuff cheaper and more efficiently will deliver for investors."

That's why Siegel boldly calls Ethanex a "no-brainer."

"Ethanex has developed a fractionation technology that allows for the production of nearly 20% more ethanol without adding a dime to water or energy costs. This is huge!"

So huge, Chevron is working with the company on the development of new ethanol plants, and the DOD (the single largest consumer of energy in the US) has asked Ethanex to help with its new energy strategy.

In his latest report, Siegel explains in more detail why he believes Ethanex will be one of the most profitable ethanol technology companies in 2007.

You can access his report for free by clicking here:

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