Submitted by EnergyTechStocks.com

Even if there’s a prolonged global recession, there will still be a critical need to develop new technologies to cope with massive forecasted demand growth for electricity and transportation fuel. With more than two billion additional people and 600 million more cars and trucks expected within 15 to 20 years, the world has no choice but to develop technology-based solutions to its steadily-worsening energy crisis.

Given the newness of many promising energy technologies, it’s logical to think there are energy-tech developers that are currently ultra small cap companies destined to become long-term winners. Keeping in mind that ultra small caps are, by definition, riskier investments than large caps, here are five ultra small caps that investors may want to research further, continuing with:

Nova Biosource Fuels Inc., a Houston-based company that trades on the American Stock Exchange.

Nova is definitely not for the faint of heart. The company most recently reported a third quarter loss of approximately $4.6 million vs. a loss of approximately $5.2 million in the year-earlier period. But Nova appears to have started posting significant revenue – about $34.3 million for the nine months, including about $25.5 million in the third quarter, of 2008.

What makes Nova intriguing is its proprietary technology for refining biodiesel, which the company is still testing. In the Nova process, more biodiesel may be made from a variety of feedstocks instead of just from soy and palm oil. The Nova process would appear to have two advantages. The feedstocks it uses are both lower cost than soy and palm and they don’t pose the environmental issues that biodiesel made from palm oil does.

Following Congress’s passage of Wall Street rescue legislation, the company noted that the new law includes a provision that extends the biodiesel tax incentive for one year, through Dec. 31, 2009. In addition, the new law gives the same $1 per gallon incentive to biodiesel made from so called non-virgin feedstocks (like restaurant grease) that has been going to soy and palm oil. Previously, non-virgin feedstocks received only 50 cents per gallon.