| U.S. SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. |
|---------------------------------------------------------|

| Form 10-Q |
|-----------|

| (Mark one) |
|------------|

| [ X ] | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterlyperiod ended June 30, 2010 |
|-------|-------------------------------------------------------------------------------------------------------------------------------------|

| OR |
|----|

| [ ] | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|-----|------------------------------------------------------------------------------------------|

| Commission File No. 0-29417 |
|-----------------------------|

|   |
|--------|

|   | ALL Fuels & Energy Company                         |   |
|--------|--------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in its charter) |   |

|   |
|--------|

|   | DELAWARE |   | 62-1581902 |   |
|--------|----------|--------|------------|--------|

|   | (State or Other Jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification Number) |   |
|--------|---------------------------------------------------------------|--------|----------------------------------------|--------|

|   |
|--------|

|   | 6165 N.W. 86th Street, Johnston, Iowa 50131 |   |
|--------|---------------------------------------------|--------|

|   | (Address of principal executive offices, including zip code) |   |
|--------|--------------------------------------------------------------|--------|

|   | (515) 331-6509 |   |
|--------|----------------|--------|

|   | (Issuer’s telephone number, including area code) |   |
|--------|--------------------------------------------------------|--------|

|   |
|--------|

| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90days.  Yes [ X ] No [  ] |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-acceleratedfiler, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and"smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one): |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Large accelerated filer [ ] |   | Accelerated filer [ ] |
|-----------------------------|--------|-----------------------|

| Non-accelerated filer [ ] (Do not check if a smaller reporting company) |   | Smaller reporting company [ X ] |
|-------------------------------------------------------------------------|--------|---------------------------------|

| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes [ ] No [ X ] |
|----------------------------------------------------------------------------------------------------------------------------------|

| As of August 13, 2010, there were 52,674,386 shares of the issuer’s common stock outstanding. |
|-----------------------------------------------------------------------------------------------------|

| PART I - FINANCIAL INFORMATION |
|--------------------------------|

| Item 1.  Financial Statements |
|-------------------------------|

| INDEX TO FINANCIAL STATEMENTS |
|-------------------------------|

|   | Page |
|--------|------|

| ALL Fuels & Energy Company |
|--------------------------------|

| Consolidated Balance Sheets as of June 30, 2010 (unaudited), and December 31, 2009 (audited) | 3 |
|----------------------------------------------------------------------------------------------|---|

| Consolidated Statements of Operations for the Three Months and Six Months Ended June 30, 2010(unaudited) and 2009 (unaudited), and the Period from Commencement of Development Stage (June7, 2004) to June 30, 2010 (unaudited) | 4 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

| Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2010 (unaudited) and 2009(unaudited), and the Period from Commencement of Development Stage (June 7, 2004) to June 30,2010 (unaudited) | 5 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

| Notes to Consolidated Financial Statements | 7 |
|--------------------------------------------|---|

|   | ALL FUELS & ENERGY COMPANY |   |
|--------|--------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONSOLIDATED BALANCE SHEETS |   |
|--------|-----------------------------|--------|

|   | June 30, 2010, and December 31, 2009 |   |
|--------|--------------------------------------|--------|

|   | 6/30/10(unaudited) |   | 12/31/09 |
|--------|--------------------|--------|----------|

| ASSETS |
|--------|

| Current assets |
|----------------|

|   | Cash and cash equivalents | $37,504 |   | $4,748 |
|--------|---------------------------|---------|--------|--------|

|   | Prepaid expenses | 223 |   | 1,721 |
|--------|------------------|-----|--------|-------|

|   | Total current assets | 37,727 |   | 6,469 |
|--------|----------------------|--------|--------|-------|

| Property and equipment - at cost |
|----------------------------------|

|   | Equipment | 3,333 |   | 3,333 |
|--------|-----------|-------|--------|-------|

|   | Less accumulated depreciation | (1,747) |   | (1,238) |
|--------|-------------------------------|---------|--------|---------|

|   | Total property and equipment - net | 1,586 |   | 2,095 |
|--------|------------------------------------|-------|--------|-------|

|   | Total assets | $39,313 |   | $8,564 |
|--------|--------------|---------|--------|--------|

| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|------------------------------------------------------|

| Current liabilities |
|---------------------|

|   | Accounts payable and accrued expenses | $428,435 |   | $298,674 |
|--------|---------------------------------------|----------|--------|----------|

|   | Notes payable - related party | 71,000 |   | 60,000 |
|--------|-------------------------------|--------|--------|--------|

|   | Notes payable - third party | 100,000 |   | --- |
|--------|-----------------------------|---------|--------|-----|

|   | Total current liabilities | 599,435 |   | 358,674 |
|--------|---------------------------|---------|--------|---------|

| Stockholders’ equity |
|----------------------------|

|   | Common stock, $.01 par value; 80,000,000 shares authorized,52,674,386 and 50,624,386 shares issued and outstanding | 526,745 |   | 506,245 |
|--------|--------------------------------------------------------------------------------------------------------------------|---------|--------|---------|

|   | Additional paid-in capital | 16,402,936 |   | 16,180,264 |
|--------|----------------------------|------------|--------|------------|

|   | Treasury stock, at cost | (150,000) |   | (150,000) |
|--------|-------------------------|-----------|--------|-----------|

|   | Receivable from shareholder | (50,000) |   | (50,000) |
|--------|-----------------------------|----------|--------|----------|

|   | Accumulated deficit | (6,423,944) |   | (6,423,944) |
|--------|---------------------|-------------|--------|-------------|

|   | Deficit accumulated during the development stage | (10,865,859) |   | (10,412,675) |
|--------|--------------------------------------------------|--------------|--------|--------------|

|   | Total stockholders’ equity (deficit) | (560,122) |   | (350,110) |
|--------|--------------------------------------------|-----------|--------|-----------|

|   | Total liabilities and stockholders’ equity (deficit) | $39,313 |   | $8,564 |
|--------|------------------------------------------------------------|---------|--------|--------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | ALL FUELS & ENERGY COMPANY |   |
|--------|--------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONSOLIDATED STATEMENTS OF OPERATIONS |   |
|--------|---------------------------------------|--------|

|   | For the Three Months and Six Months Ended June 30, 2010 and 2009, and the Periodfrom Commencement of Development Stage (June 7, 2004) to June 30, 2010 |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Three Months Ended June 30, |   | Six Months Ended June 30, |   |
|--------|-----------------------------|--------|---------------------------|--------|

|   | 2010(unaudited) |   | 2009(unaudited) |   | 2010(unaudited) |   | 2009(unaudited) |   | Period fromCommence-ment ofDevelopmentStage (June 7,2004) to6/30/10(unaudited) |
|--------|-----------------|--------|-----------------|--------|-----------------|--------|-----------------|--------|--------------------------------------------------------------------------------|

| Revenues | $--- |   | $3,092 |   | $--- |   | $8,092 |   | $8,092 |
|----------|------|--------|--------|--------|------|--------|--------|--------|--------|

| Operating Costs and Expenses |   |   |   |   |   |   |   |   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Consulting | 12,687 |   | 22,455 |   | 13,562 |   | 91,385 |   | 7,729,897 |
|--------|------------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|

|   | Legal and professional | 17,084 |   | 30,353 |   | 45,592 |   | 46,989 |   | 1,248,405 |
|--------|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|

|   | Impairment charge | --- |   | --- |   | --- |   | --- |   | 333,540 |
|--------|-------------------|-----|--------|-----|--------|-----|--------|-----|--------|---------|

|   | Depreciation and amortization | 236 |   | --- |   | 509 |   | 341 |   | 7,673 |
|--------|-------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|-------|

|   | General and administrative | 79,540 |   | 63,064 |   | 166,201 |   | 163,864 |   | 1,803,911 |
|--------|----------------------------|--------|--------|--------|--------|---------|--------|---------|--------|-----------|

|   | Total operating expenses | 109,547 |   | 115,872 |   | 225,864 |   | 302,579 |   | 11,123,426 |
|--------|--------------------------|---------|--------|---------|--------|---------|--------|---------|--------|------------|

| Other income (expense) |   |   |   |   |   |   |   |   |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Beneficial conversion expense | (145,172) |   | --- |   | (221,172) |   | --- |   | (281,172) |
|--------|-------------------------------|-----------|--------|-----|--------|-----------|--------|-----|--------|-----------|

|   | Interest expense | (3,542) |   | --- |   | (6,165) |   | --- |   | (65,100) |
|--------|------------------|---------|--------|-----|--------|---------|--------|-----|--------|----------|

|   | Interest income | 9 |   | 25 |   | 17 |   | 123 |   | 51,346 |
|--------|-----------------|---|--------|----|--------|----|--------|-----|--------|--------|

|   | Rental income | --- |   | --- |   | --- |   | --- |   | 66,250 |
|--------|---------------|-----|--------|-----|--------|-----|--------|-----|--------|--------|

|   | Loss on sale of land | --- |   | --- |   | --- |   | --- |   | (1,278) |
|--------|----------------------|-----|--------|-----|--------|-----|--------|-----|--------|---------|

|   | Equity loss in subsidiary | --- |   | --- |   | --- |   | (14,485) |   | (233,340) |
|--------|---------------------------|-----|--------|-----|--------|-----|--------|----------|--------|-----------|

|   | Total other income(expense) | (148,705) |   | 25 |   | (227,320) |   | (14,362) |   | (463,294) |
|--------|-----------------------------|-----------|--------|----|--------|-----------|--------|----------|--------|-----------|

| Net loss | $(258,252) |   | $(112,755) |   | $(453,184) |   | $(308,849) |   | $(11,578,628) |
|----------|------------|--------|------------|--------|------------|--------|------------|--------|---------------|

| Income (loss) per share: |   |   |   |   |   |   |   |   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| Basic | $(0.00) |   | $(0.00) |   | $(0.01) |   | $(0.01) |   |   |
|-------|---------|--------|---------|--------|---------|--------|---------|--------|--------|

| Diluted | $(0.00) |   | $(0.00) |   | $(0.00) |   | $(0.01) |   |   |
|---------|---------|--------|---------|--------|---------|--------|---------|--------|--------|

| Weighted average number ofshares outstanding: |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| Basic | 52,674,386 |   | 51,291,053 |   | 52,286,607 |   | 51,457,719 |   |   |
|-------|------------|--------|------------|--------|------------|--------|------------|--------|--------|

| Diluted | 67,718,828 |   | 51,291,053 |   | 70,842,544 |   | 51,457,719 |   |   |
|---------|------------|--------|------------|--------|------------|--------|------------|--------|--------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | ALL FUELS & ENERGY COMPANY |   |
|--------|--------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONSOLIDATED STATEMENTS OF CASH FLOWS |   |
|--------|---------------------------------------|--------|

|   | For the Six Months Ended June 30, 2010 and 2009, and the Period fromCommencement of Development Stage (June 7, 2004) to June 30, 2010 |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Six Months Ended June 30, |   |
|--------|---------------------------|--------|

|   | 2010(unaudited) |   | 2009(unaudited) |   | Period fromCommencementof DevelopmentStage (June 7,2004) to 6/30/10(unaudited) |
|--------|-----------------|--------|-----------------|--------|--------------------------------------------------------------------------------|

| CASH FLOWS FROM OPERATING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

| Net loss | $(453,184) |   | $(308,849) |   | $(11,578,628) |
|----------|------------|--------|------------|--------|---------------|

|   | Adjustments to reconcile net loss to cash used foroperating activities: |   |   |   |   |   |
|--------|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|

|   | Loss on sale of land | --- |   | --- |   | 1,278 |
|--------|----------------------|-----|--------|-----|--------|-------|

|   | Loss on disposition of fixed assets | --- |   | 186 |   | 187 |
|--------|-------------------------------------|-----|--------|-----|--------|-----|

|   | Depreciation and amortization | 509 |   | 341 |   | 7,673 |
|--------|-------------------------------|-----|--------|-----|--------|-------|

|   | Non-cash beneficial conversion feature | 221,172 |   | --- |   | 281,172 |
|--------|----------------------------------------|---------|--------|-----|--------|---------|

|   | Options issued for compensation | --- |   | 57,192 |   | 6,999,585 |
|--------|---------------------------------|-----|--------|--------|--------|-----------|

|   | Stock issued for services and compensation | 22,000 |   | --- |   | 1,198,345 |
|--------|--------------------------------------------|--------|--------|-----|--------|-----------|

|   | Impairment charge | --- |   | --- |   | 333,540 |
|--------|-------------------|-----|--------|-----|--------|---------|

|   | Increase (decrease) in prepaids | 1,498 |   | 119 |   | (88,043) |
|--------|---------------------------------|-------|--------|-----|--------|----------|

|   | Increase in accounts payable | 129,761 |   | 19 |   | 370,804 |
|--------|------------------------------|---------|--------|----|--------|---------|

| Net cash used for operating activities | (78,244) |   | (250,992) |   | (2,474,087) |
|----------------------------------------|----------|--------|-----------|--------|-------------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | ALL FUELS & ENERGY COMPANY |   |
|--------|--------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONSOLIDATED STATEMENTS OF CASH FLOWS |   |
|--------|---------------------------------------|--------|

|   | For the Six Months Ended June 30, 2010 and 2009, and the Period fromCommencement of Development Stage (June 7, 2004) to June 20, 2010 (cont.) |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Six Months Ended June 30, |   |
|--------|---------------------------|--------|

|   | 2010(unaudited) |   | 2009(unaudited) |   | Period fromCommencementof DevelopmentStage (June 7,2004) to 6/30/10(unaudited) |
|--------|-----------------|--------|-----------------|--------|--------------------------------------------------------------------------------|

| CASH FLOWS FROM INVESTING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

|   | Purchase of land | --- |   | --- |   | (951,238) |
|--------|------------------|-----|--------|-----|--------|-----------|

|   | Increase in accrued liabilities - related party | --- |   | --- |   | 40,056 |
|--------|-------------------------------------------------|-----|--------|-----|--------|--------|

|   | Proceeds from sale of land | --- |   | --- |   | 461,960 |
|--------|----------------------------|-----|--------|-----|--------|---------|

|   | Purchase of office equipment | --- |   | (1,294) |   | (4,160) |
|--------|------------------------------|-----|--------|---------|--------|---------|

|   | Payments on construction-in-progress | --- |   | --- |   | (193,720) |
|--------|--------------------------------------|-----|--------|-----|--------|-----------|

| Net cash used in investing activities | --- |   | (1,294) |   | (647,102) |
|---------------------------------------|-----|--------|---------|--------|-----------|

| CASH FLOWS FROM FINANCING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

|   | Proceeds from sale of common stock for cash | --- |   | --- |   | 2,653,623 |
|--------|---------------------------------------------|-----|--------|-----|--------|-----------|

|   | Principal payments on related party advances | --- |   | --- |   | (3,988) |
|--------|----------------------------------------------|-----|--------|-----|--------|---------|

|   | Proceeds from notes payable - third party | 100,000 |   | --- |   | 100,000 |
|--------|-------------------------------------------|---------|--------|-----|--------|---------|

|   | Proceeds from notes payable - related party | 11,000 |   | --- |   | 71,000 |
|--------|---------------------------------------------|--------|--------|-----|--------|--------|

|   | Proceeds from long-term debt, net of deferredborrowing costs | --- |   | --- |   | 483,120 |
|--------|--------------------------------------------------------------|-----|--------|-----|--------|---------|

|   | Purchase of treasury stock | --- |   | --- |   | (150,000) |
|--------|----------------------------|-----|--------|-----|--------|-----------|

|   | Contributions from shareholders | --- |   | --- |   | 950 |
|--------|---------------------------------|-----|--------|-----|--------|-----|

| Net cash provided by financing activities | 111,000 |   | --- |   | 3,154,705 |
|-------------------------------------------|---------|--------|-----|--------|-----------|

|   |
|--------|

| NET CHANGE IN CASH | 32,756 |   | (252,286) |   | 33,516 |
|--------------------|--------|--------|-----------|--------|--------|

| Cash, beginning of period | 4,748 |   | 314,224 |   | 3,988 |
|---------------------------|-------|--------|---------|--------|-------|

| Cash, end of period | $37,504 |   | $61,938 |   | $37,504 |
|---------------------|---------|--------|---------|--------|---------|

| The accompanying notes are an integral part of these statements. |
|------------------------------------------------------------------|

|   | ALL FUELS & ENERGY COMPANY |   |
|--------|--------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |   |
|--------|--------------------------------------------|--------|

|   | June 30, 2010(unaudited) |   |
|--------|--------------------------|--------|

| Note 1.  Summary of Significant Accounting Policies |
|-----------------------------------------------------|

| Basis of Presentation |
|-----------------------|

| The accompanying unaudited interim financial statements of ALL Fuels & Energy Company (the “Company”) havebeen prepared by the Company in accordance with accounting principles generally accepted in the United States ofAmerica, pursuant to the Securities and Exchange Commission rules and regulations. In management’s opinion alladjustments necessary for a fair presentation of the results for interim periods have been reflected in the interimfinancial statements. The results of operations for any interim period are not necessarily indicative of the results fora full year. All adjustments to the financial statements are of a normal recurring nature. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Certain information and footnote disclosures normally included in financial statements prepared in accordance withgenerally accepted accounting principles have been condensed or omitted. Such disclosures are those that wouldsubstantially duplicate information contained in the most recent audited financial statements of the Company, suchas significant accounting policies and stock options. Management presumes that users of the interim statements haveread or have access to the audited financial statements and notes thereto included in the Company’s Annual Reporton Form 10-K for the year ended December 31, 2009. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 2.  Going Concern |
|------------------------|

| The Company has incurred losses totaling $11,578,628 through June 30, 2010, and had limited working capital atJune 30, 2010.  Because of these conditions, the Company will require additional working capital to continueoperations and develop its business. The Company intends to raise additional working capital either through privateplacements, public offerings and/or bank financing. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| There are no assurances that the Company will be able to achieve a level of revenues adequate to generate sufficientcash flow from operations or obtain additional financing through private placements, public offerings and/or bankfinancing necessary to support the Company’s working capital requirements. To the extent that funds generated fromany private placements, public offerings and/or bank financing are insufficient, the Company will have to raiseadditional working capital. No assurance can be given that additional financing will be available, or if available, willbe on terms acceptable to the Company. If adequate working capital is not available, the Company may not continueits operations or execute its business plan. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financialstatements do not include any adjustments relating to the recoverability and classification of asset carrying amountsor the amount and classification of liabilities that might be necessary should the Company be unable to continue asa going concern. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 3.  Management’s Plans for Liquidity |
|-------------------------------------------------|

| Since the third quarter of 2009, $71,000 in loans from a director provided the Company with a portion of the capitalnecessary to sustain its operations.  All of the loans made by this director are payable on demand and bear interestat 10% per annum and are convertible, at the director’s option, into shares of the Company’s common stock at therate of one share for every $.01 of debt converted.  This director has indicated that he will not demand payment ofthese loans, until such time as the Company has adequate funds with which to repay the loans.  During the first sixmonths of 2010, the Company borrowed a total of $100,000 from a third party, through the issuance of convertiblepromissory notes, $65,000 of which is payable in October 2010 and $35,000 of which is payable in February 2011,bearing interest at 8% per annum, and convertible into a number of shares based on the market price of our commonstock. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| However, it is likely that the Company will require additional funds, in order to sustain its operations through theremainder of 2010.  The Company will require substantial additional capital to purchase one or more existing ethanolproduction facilities or to pursue other business opportunities.  The Company believes it will be able to secure thefinancing, in the form of debt, equity or a combination thereof, necessary to complete these opportunities.  TheCompany does not have a current commitment for an equity investment or a loan in any amount. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the remainder of 2010, the Company intends to commit its available capital, if any, to its pursuit of theacquisition of an existing ethanol production facility and its Ethanol Group activities. The needed funding will besought from third parties. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 4.  Business of the Company |
|----------------------------------|

| *Ethanol Plant Acquisition Activities*.  Since the third quarter of 2009, the Company has actively pursued theacquisition of one or more ethanol plants.  To date, the Company’s efforts in this regard have not been successful.However, the Company continues its efforts and, currently, has identified three such plants and has begun negotiationsfor their acquisition.  The Company has entered into a letter of intent with respect to the acquisition of an ethanol plantlocated in the Midwest United States.  The Company will be required to obtain capital from third parties, in order toconsummate any such acquisition transaction. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *ALL Fuels Advisory Group*.  In October 2008 and in response to the ethanol industry’s then-current state, theCompany created a new business division known as “ALL Fuels Advisory Group”.   The Company’s managementbelieves there exist numerous opportunities to leverage the Company’s in-house ethanol expertise to provide industry-best advisory services through Advisory Group.  Currently, the Advisory Group is pursuing numerous opportunitiesto garner consulting contracts.  Advisory Group was created in response to the ethanol industry’s current a high levelof stress.  As the ethanol industry attempts to stabilize itself in the wake of the tumult caused by the recent period ofhistorically-high oil prices, during the first half of 2008, immediately followed by a sudden drop from thosehistorically-high prices, the Company is offering its advisory services to the industry.  During the first half of 2009,the Company focused primarily on the development of Advisory Group, which produced $8,092 in revenues duringthe first half of 2009. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *Enzyme Opportunity*.  While the Company’s ethanol-related enzyme development activities are not currently active,the Company continues to seek a third party that is interested in funding the Company’s enzyme development plans.The Company’s activities have been aimed at producing one or more “super” enzymes that would serve to produceethanol from cellulosic plant material. The Company believes such an enzyme product would, in theory, reduceethanol productions costs by up to 50% compared to traditional corn-based production. In addition, these enzymedevelopment activities would produce one or more additive enzyme products that would serve to enhance corn ethanolproduction by 5% to 10%. It is likely that approximately $1.5 million is required over a 24-month period to completethe development of up to ten market-ready enzymes. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 5.  Prepaid Expenses |
|---------------------------|

| At June 30, 2010, the Company had prepaid expenses of $223, which represents prepaid insurance. |
|-------------------------------------------------------------------------------------------------|

| At June 30, 2009, the Company had prepaid expenses of $7,320, which represents prepaid insurance. |
|---------------------------------------------------------------------------------------------------|

| Note 6.  Notes Payable - Related Party |
|----------------------------------------|

| In January 2010, a director made a loan to the Company in the amount of $11,000.  At June 30, 2010, this directorhad made loans to the Company in the total amount of $71,000.  These loans are payable on demand and bear interestat 10% per annum and are convertible, at the director’s option, into shares of the Company’s common stock at therate of one share for every $.01 of debt converted.  This director has indicated that he will not demand payment ofthese loans, until such time as the Company has adequate funds with which to repay the loans. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 7.  Notes Payable - Third Party |
|--------------------------------------|

| In January 2010, the Company borrowed $65,000 from a third party, and in May 2010, the Company borrowed$35,000 from the same third party, through the issuance of convertible promissory notes, payable in October 2010and February 2011, respectively, bearing interest at 8% per annum, and convertible into a number of shares based onthe market price of the Company’s common stock.  On the dates of issuance, these promissory notes were convertibleinto approximately 18,000,000 shares of Company common stock. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 8.  Capital Stock |
|------------------------|

| Common Stock for Director Bonus |
|---------------------------------|

| In March 2010, the Company issued 50,000 shares of its common stock as a bonus to one of its directors.  Theseshares were valued at $.04 per share, or $2,000, in the aggregate. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Common Stock for Services |
|---------------------------|

| During the first six months of 2010, the Company issued 2,000,000 shares of common stock in payment of $20,000in legal services. |
|----------------------------------------------------------------------------------------------------------------------------------|

| During the first six months of 2009, the Company issued no shares to consultants for services. |
|------------------------------------------------------------------------------------------------|

| Warrant Cancellation |
|----------------------|

| In March 2010, a former Company director tendered for cancellation 5,520,366 warrants to purchase a like numberof shares of Company common stock.  The Company accepted such tender and cancelled all of such warrants. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 9.  Subsequent Event |
|---------------------------|

| Promissory Note Conversion |
|----------------------------|

| In August 2010, $7,500 of a convertible promissory note was converted into approximately 2,500,000 shares of theCompany’s common stock. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|

| Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|-------------------------------------------------------------------------------------------------------|

| General |
|---------|

| *Ethanol Plant Acquisition Activities*.  Since the third quarter of 2009, the Company has actively pursued theacquisition of one or more ethanol plants.  To date, the Company’s efforts in this regard have not been successful.However, the Company continues its efforts and, currently, has identified four such plants and has begun negotiationsfor their acquisition.  The Company has entered into a letter of intent with respect to the acquisition of an ethanol plantlocated in the Midwest United States.  The Company will be required to obtain capital from third parties, in order toconsummate any such acquisition transaction.  There is no assurance that we will be able to obtain the funding neededto purchase an ethanol plant. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *ALL Fuels Advisory Group*.  In October 2008 and in response to the ethanol industry’s then-current state, theCompany created a new business division known as “ALL Fuels Advisory Group”.   The Company’s managementbelieves there exist numerous opportunities to leverage the Company’s in-house ethanol expertise to provide industry-best advisory services through Advisory Group.  Currently, the Advisory Group is pursuing numerous opportunitiesto garner consulting contracts.  Advisory Group was created in response to the ethanol industry’s current a high levelof stress.  As the ethanol industry attempts to stabilize itself in the wake of the tumult caused by the recent period ofhistorically-high oil prices, during the first half of 2008, immediately followed by a sudden drop from thosehistorically-high prices, the Company is offering its advisory services to the industry.  During the first half of 2009,the Company focused primarily on the development of Advisory Group, which produced $8,092 in revenues duringthe first half of 2009. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *Enzyme Opportunity*.  While the Company’s ethanol-related enzyme development activities are not currently active,the Company continues to seek a third party that is interested in funding the Company’s enzyme development plans.The Company’s activities have been aimed at producing one or more “super” enzymes that would serve to produceethanol from cellulosic plant material. The Company believes such an enzyme product would, in theory, reduceethanol productions costs by up to 50% compared to traditional corn-based production. In addition, these enzymedevelopment activities would produce one or more additive enzyme products that would serve to enhance corn ethanolproduction by 5% to 10%. It is likely that approximately $1.5 million is required over a 24-month period to completethe development of up to ten market-ready enzymes. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Critical Accounting Policies |
|------------------------------|

| While we believe that the factors considered provide a meaningful basis for the accounting policies applied in thepreparation of the condensed consolidated financial statements, we cannot guarantee that our estimates andassumptions will be accurate. If such estimates and assumptions prove to be inaccurate, we may be required to makeadjustments to these estimates in future periods. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *Litigation and Tax Assessments*. Should we become involved in lawsuits, we intend to assess the likelihood of anyadverse judgments or outcomes of any of these matters as well as the potential range of probable losses. Adetermination of the amount of accrual required, if any, for these contingencies will be made after careful analysisof each matter. The required accrual may change from time to time, due to new developments in any matter or changesin approach (such as a change in settlement strategy) in dealing with these matters. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Additionally, in the future, we may become engaged in various tax audits by federal and state governmental authoritiesincidental to our business activities. We anticipate that we will record reserves for any estimated probable losses forany such proceeding. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *Stock-Based Compensation*. We account for stock-based compensation based on the provisions of AccountingStandard Codification (“ASC”) 718 Share Based Payments. ASC 718 requires companies to apply a fair-value-basedmeasurement method in accounting for share-based payment transactions with employees and to record compensationcost for all stock awards granted after the required effective date and for awards modified, repurchased or cancelledafter that date. The scope of ASC 718 encompasses a wide range of share-based compensation arrangements,including share options, restricted share plans, performance-based awards, share appreciation rights and employeeshare purchase plans. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *Recent Accounting Pronouncements*.  There were no recent accounting pronouncements that our company has notimplemented that materially affect our financial statements. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Results of Operations - First Six Months 2010 vs. First Six Months 2009 |
|-------------------------------------------------------------------------|

| *Revenues*.  During the First Six Months 2010, we have not generated any revenues, though our Ethanol Groupcontinues to seek ethanol services consulting contracts.  We cannot predict whether our Ethanol Group will generateany revenues during the remainder of 2010.  During the First Six Months 2009, we generated $8,092 in revenuesthrough our Ethanol Group division. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *Expenses*.  Our cash outlays for operating expenses during the First Six Months 2010 were $78,244, down from$250,992 for the First Six Months 2009.  Our non-cash operating expenses, which include stock issued for servicesand options issued for services, totalled $22,000 and $57,192 for the First Six Months 2010 and the First Six Months2009, respectively.  Additionally, during the First Six Months 2010, we incurred a non-recurring non-cash operatingexpense of $221,172 which relates to a beneficial conversion feature associated with the issuance of promissory notesthat are convertible into shares of our common stock. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We have dramatically reduced our monthly operating expenses, including salary and professional fees, toapproximately $10,000.  The level of such operating expenses are expected to remain at such levels for the foreseeablefuture, unless we are able complete the acquisition of an existing ethanol production facility, of which there is noassurance. Should our Ethanol Group continue to generate business opportunities, or should we be successful inacquiring an ethanol plant or becoming the operator of an ethanol plant, our operating expenses will significantlyincrease, although we are unable to predict the amount of such increase. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Financial Condition |
|---------------------|

| At June 30, 2010, we had $37,504 in cash and a working capital deficit of $561,708.  At December 31, 2009, our cashposition was $4,748 and our working capital deficit was $352,205.  We are currently seeking operating capital, sowe will be able to sustain our current level of operations.  Without additional operating capital, we will remainsubstantially illiquid.  In addition, as discussed below, we will be required to obtain additional capital to pursuecurrent business opportunities and otherwise to pursue our complete plan of business. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In January 2010, one of our directors made a loan to our company in the amount of $11,000. This loan is payable ondemand and bears interest at 10% per annum and is convertible, at the director’s option, into shares of our commonstock at the rate of one share for every $.01 of debt converted. This director has indicated that he will not demandpayment of this loan, until such time as we have adequate funds with which to repay the loan.  In January 2010, weborrowed $65,000 from a third party, and in May 2010, we borrowed $35,000 from the same third party, through theissuance of convertible promissory notes, payable in October 2010 and February 2011, respectively, bearing interestat 8% per annum, and convertible into a number of shares based on the market price of our common stock.  In August2010, $7,500 of such convertible promissory notes was converted into approximately 2,500,000 shares of ourcommon stock.  We are unable to predict if and when this third party will elect to elect further conversions of itspromissory notes.  On the dates of issuance, these promissory notes were convertible into approximately 18,000,000shares of our common stock.  Currently, these promissory notes are convertible into approximately 25,000,000 sharesof our common stock. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Management’s Plans Relating to Future Liquidity |
|-------------------------------------------------------|

| We currently possess approximately $10,000 in cash.  However, we will require additional capital to maximize thepotential for strategic acquisitions. We may never obtain capital for this purpose.  Should we locate an existing ethanolproduction facility that we are able to acquire, we would be unable to complete any such acquisition, withoutsignificant financing. While our management believes we will be able to secure the financing, in the form of debt,equity or a combination thereof, necessary to complete any such proposed acquisition, there is no assurance that suchwill be the case. This uncertainty in the availability of financing has been exacerbated by the recent severe downturnin the U.S. economy lead by the banking and securities industries.  To date, we have not received a commitment foran equity investment or a loan in any amount. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Capital Expenditures |
|----------------------|

| During the First Six Months 2010, we made no capital expenditures.  During the First Six Months 2009, we made$1,294 in capital expenditures.  We cannot predict the amount of any future capital expenditures, if any. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 3.  Quantitative and Qualitative Disclosures About Market Risk. |
|----------------------------------------------------------------------|

| Not applicable. |
|-----------------|

| Item 4T.  Controls and Procedures. |
|------------------------------------|

| Our Chief Executive Officer/Acting Chief Financial Officer, after evaluating the effectiveness of our disclosurecontrols and procedures, as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 has concluded that, asof the end of the fiscal quarter covered by this report on Form 10-Q, our disclosure controls and procedures wereeffective to provide reasonable assurances that information required to be disclosed in the reports filed or submittedunder the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periodsspecified in the Securities and Exchange Commission’s rules and forms and such information is accumulated andcommunicated to management, including the Chief Executive Officer/Acting Chief Financial Officer, as appropriate,to allow timely decisions regarding disclosures. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| There was no change in our internal control over financial reporting during the quarter ended June 30, 2010, that hasmaterially affected, or is reasonably likely to materially affect, our company’s internal control over financial reporting. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| PART II - OTHER INFORMATION |
|-----------------------------|

| Item 1. Legal Proceedings. |
|----------------------------|

| Recently, we secured the dismissal of a lawsuit filed in the Iowa District Court for Polk County, Case No. CL-112106,styled *Polymer Pipe Technology, L.L.C. vs. ALL Energy Company, et al.*  Currently, we are not engaged in any legalproceeding. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. |
|----------------------------------------------------------------------|

| None. |
|-------|

| Item 3. Defaults upon Senior Securities. |
|------------------------------------------|

| None. |
|-------|

| Item 4. Submission of Matters to a Vote of Security Holders. |
|--------------------------------------------------------------|

| No matter was submitted to our shareholders, during the three months ended June 30, 2010.  In April 2007, holdersof approximately 60% of our common stock, acting by written consent in lieu of a meeting, approved an amendmentto our amended and restated certificate of incorporation, whereby our authorized capital shares would be increasedto 700,000,000 shares of common stock and 50,000,000 shares of preferred stock. This amendment to our amendedand restated certificate of incorporation will be effected in the near future. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 5. Other Information. |
|----------------------------|

| None. |
|-------|

| Item 6. Exhibits. |
|-------------------|

|   | Exhibit No. |   | Description |
|--------|-------------|--------|-------------|

|   | 31.1 * |   | Certification of Chief Executive Officer and Principal Financial and AccountingOfficer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 * |   | Certification of Chief Executive Officer and Principal Financial and AccountingOfficer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | * filed herewith. |
|--------|-------------------|

|   |
|--------|

| SIGNATURES |
|------------|

| In accordance with the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this reportto be signed on its behalf by the undersigned, hereunto duly authorized. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Date: August 16, 2010. | ALL FUELS & ENERGY COMPANY |
|------------------------|--------------------------------|

|   |
|--------|

|   | By: | /s/ DEAN E. SUKOWATEY |   |
|--------|-----|-----------------------|--------|

|   | Dean E. Sukowatey, President and ActingChief Financial Officer |   |
|--------|----------------------------------------------------------------|--------|