My view is sp has been dropping because it remains still very...

My view is sp has been dropping because it remains still very speculative. Risk remains high. They have a big factory and lots of potential customers, ongoing trials and conditional orders but there is no guarantee as yet that they will have the demand for their product. The situation differs greatly from say an explorer that may be moving into production. In that case they usually know there is a huge demand for their product and they have offtake agreements in place. In our case, the technology is not in widescale use so there is a big unknown about whether or not is will be accepted despite how good it looks.

I don't think we will know much until late march or later when we hopefully get some answer on UK certification and the German funding. Couple of excerpts from the half year report...

"EWE has submitted a formal funding application and a positive decision is expected in early 2011.

Subject to EWE obtaining Government funding and the units meeting agreed performance targets, EWE will order 70 units for delivery in 2011 and 130 units for delivery in 2012."

Still not a big order though. E.ON is talking serious numbers with 100,000 units but it is also subject to price and performance targets. My understanding is that they still need MSC certification though. Another exceprt, about MSC auditors assessment... "The Company expects the review of the data provided during this site visit to be completed during the March quarter, and additional procedures to be implemented during the June quarter in order for Bluegen to be formally accredited under MSC."

I still remain positive.