Carbon Sciences (CABN.OB)

One of my favorite and hopefully promising investments is in Carbon Sciences (CABN.OB). After hearing about the company and doing some research I decided to purchase 375 shares @ .085 cents on 7/23/10.

Carbon Sciences is developing a process to turn CO2 into everyday gasoline.

Consider this technology and process like Tyler Durden in "Fight Club" where he takes old liposuction fat to make luxury soap...only to sell it back to ladies who most likely got plastic surgery/liposuction to begin with.

CO2 in some circles is considered a pollutant and developing a process to turn CO2 into gasoline could be the "miracle" the western world and the world at large has been waiting for.

Here is the "science pitch" of Carbon Sciences' process:



Here is the "sales pitch" of Carbon Sciences:




Lastly, here is a headline published after my investment that caused a little rally for the start-up:

"Carbon Sciences Successfully Synthesizes Proprietary Raw Catalyst for CO2-Based Gas-to-Liquids (GTL)"

NOW...

Here are some concerns:

1) Powerful extraction and oil interests would not want this technology to see the light of day.

2) The reactor and the various petrol fuels CABN could produce never make it to the market.

3) If the gasoline/petrol fuels make it to the market, the company could get slapped with the accusation of "dumping" or some hyped-up trade violation should the company pump out gasoline at a price so cheap that gasoline producers cry "uncle" unanimously.

4) Fuel-cell vehicles, electric vehicles, or some radical automotive innovation takes over and makes gasoline and Carbon Sciences obsolete.

(However, if CABN's reactor gets up and running in a few years the process would be a good "interim" solution considering auto innovations will still take a while to take over...not to mention CABN's technology would still be attractive in the meantime if global oil supplies dwindle or if oil production remains volatile)

IN SUM, ONLY TIME WILL TELL.

And while the company (like many start-ups) could fail, I enjoy speculating about Gas-to-liquid technology's potential and the possibility of a real "game changer" in the petrol/commercial fuels industry like Carbon Sciences.