I am not sure the word "faith" applies. It is like saying I have "faith" that the engineering team does know what to do. That is not usually the way engineering is done. Many levels of approval are required before construction begins. Due Diligence is done by government. For example, the Georgia state government and the US DOE approved Range Fuels and they did it on faith. However, that did not sustain the company since the leadership and technology did not work as planned. This is common as many companies expand and find the technology does not expand accordingly.
I think the faith part of the equation is that the overall process will actually work at scale and with a cost per gallon that is competitive.
Tesla and KIOR are on different planets from a financing perspective, Tesla had funds to get it through the development and start up cycle, KIOR doesn't. KIOR is in a catch 22, no financing unless they prove the process works at scale, and they can't really prove that it works without financing. Kind of what comes first, the chicken or the egg.
The performance over the last year plus of Columbus I and, for that matter management doesn't give me a warm fuzzy that they can pull it off, but they certainly put up the front that they will obtain the necessary funding. I'm kind of surprised that they haven't been able to partner up with someone in this venture. One thing is for certain, they have a very short window of oppurtunity to pull this thing out of the fire. My best guess is that they will be lucky to make it to the 1Q CC in May unless there is some very positive news on the year end CC, I assume in March. Assuming they are using the $25M at year end to fund the $10M capital spend and they continue to carry the other overhead, they will be very short of cash by the end of 1Q.
i really dont expect much good news from kior for awhile. i think the only hope for a future for kior will be taking place in the r and d department somewhere in texas. unfortunatly i feel that is the very department that has let us all down thus far. eathor good or bad i hope to be here to see how it turns out