UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-QSB  [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2006  OR  [   ]  TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934  From ________________ to ________________  INTERNATIONAL POWER GROUP, LTD. (Exact name of small business issuer  as specified in its charter)  Delaware20-1686022(State or other jurisdiction of incorporation)(IRS Employer Identification No.)  950 Celebration Blvd. Suite A, Celebration, FL. 34747(Address of principal executive offices)  (407) 566-0318 (Issuers telephone number, including area code)  6 Glory Lane, Sussex, NJ - 07461(Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Sections 13 or 15(d) of the  Exchange  during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filings for the past 90 days.     YES  [X]    NO  [  ]  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ]  No [X]  State the number of shares outstanding of each of the issuer's classes of common stock, as of November 16, 2006: 319,949,096 shares of Common Stock, $.00001 par value.  Transitional Small Business Disclosure format (check one):  Yes [  ]  No [X]  .         TABLE OF CONTENTS      PART I  FINANCIAL INFORMATION 3 ITEM 1. FINANCIAL STATEMENTS 3 BALANCE SHEETS 4 STATEMENTS OF OPERATIONS AND DEFICIT 5 STATEMENTS OF CASH FLOWS 7 NOTES TO FINANCIAL STATEMENTS 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION 11 ITEM 3. CONTROLS AND PROCEDURES. 14 PART II  OTHER INFORMATION 14 ITEM 1. LEGAL PROCEEDINGS 14 ITEM 2. UNREGISTERED SALE OF SECURITIES AND USE OF PROCEEDS. 14 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 14 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OR SECURITIES HOLDERS 15 ITEM 5. OTHER INFORMATION 15 ITEM 6. EXHIBITS 15 SIGNATURES 16 INDEX TO ATTACHED EXHIBITS 17            Page 2 of 17


PART I  FINANCIAL INFORMATION    ITEM 1. FINANCIAL STATEMENTS            CONTENTS       PAGEBalance Sheets4Statements of Operations and Deficit Accumulated
During Development Stage  Nine Months5Statements of Operations and Deficit Accumulated
During Development Stage  Three Months6Statements of Cash Flows7Notes to Financial Statements8


Page 3 of 17    INTERNATIONAL POWER GROUP, LTD (A Development Stage Company)  BALANCE SHEETS  ASSETSSeptember 30, 2006December 31, 2005(Unaudited)(Audited)Current Assets:Cash$        839,723$    955,621Accrued interest receivable2,441-Notes receivable-65,000Total current assets842,1641,020,621Other Assets:Deposit2,0002,000Total other assets2,0002,000TOTAL ASSETS$844,164$1,022,621LIABILITIES AND STOCKHOLDERS EQUITYLiabilities:Accounts payable$         61,343$       82,899Loans payable200,000-Total current liabilities261,34382,899Stockholders Equity:Common stock: - authorized 750,000,000shares of $.00001 par value; issued and
outstanding, 318,019,097 shares and
310,407,100 shares, respectively3,1803,104Capital in excess of par value6,732,1531,906,202Paid in capital - options3,270,5002,104,500Paid in capital - warrants581,486231,263Deficit accumulated during development stage(10,004,498)(3,305,347)Total Stockholders Equity582,821939,722TOTAL LIABILITIES ANDSTOCKHOLDERS EQUITY$844,164$1,022,621The accompanying notes are an integral part of these financial statements.              Page 4 of 17   INTERNATIONAL POWER GROUP, LTD. (A Development Stage Company)   STATEMENTS OF OPERATIONS AND DEFICIT    ACCUMULATED DURING DEVELOPMENT STAGE (Unaudited)  April 15, 2002Nine Months Ended
September 30,(Date of Inception of Development Stage)20062005To September 30, 2006REVENUE$                -$               -$               -OPERATING EXPENSES (A)6,699,255869,70410,004,602LOSS FROM OPERATIONS(6,699,255)(869,704)(10,004,602)OTHER INCOME (EXPENSE)Interest income2,441-2,441Interest expense(2,337)-(2,337)LOSS ACCUMULATED DURINGDEVELOPMENT STAGE$(6,699,151)$  (869,704)$(10,004,498)NET LOSS PER SHAREBasic and diluted$        (0.02)$               -WEIGHTED AVERAGE SHARES OUTSTANDING314,078,370294,389,277   (A) Operating expenses includedthe following:Options Expense$3,034,000$340,000$   5,174,000Consulting Expenses1,325,169264,5601,764,763Professional Fees767,47469,068876,092Payroll and Payroll Taxes439,48120,615495,673Travel and Meals645,99284,955856,244Office Expenses156,97024,134221,668Rent93,739-104,286Public Relations110,26221,233140,222Insurance35,854-49,332Automobile Expenses28,038-45,633Web Development--19,500Internet Expense2,656-14,763Impairment--123,000Other Expenses59,62045,139119,426$6,699,255$   869,704$ 10,004,602    The accompanying notes are an integral part of these financial statements.  Page 5 of 17   INTERNATIONAL POWER GROUP, LTD. (A Development Stage Company) STATEMENTS OF OPERATIONS and DEFICIT ACCUMULATED DURING DEVELOPMENT STAGE (Unaudited)  April 15, 2002Three Months Ended
September 30,(Date of Inception of Development Stage)20062005To September 30, 2006REVENUE$               -$              -$               -OPERATING EXPENSES (A)3,436,599324,16910,004,602OPERATION LOSS(3,436,599)(324,169)(10,004,602)OTHER INCOME (EXPENSE)Interest Income---Interest expense(2,337)-(2,337)LOSS ACCUMULATED DURINGDEVELOPMENT STAGE$ (3,438,936)$   (324,169)$(10,004,498)NET LOSS PER SHAREBasic and diluted$          (0.01)$                -WEIGHTED AVERAGE SHARES OUTSTANDING318,019,097290,810,387   (A) Operating expenses includedthe following:Options Expense$1,984,000$          -$  5,174,000Consulting Expenses545,735190,5401,764,763Professional Fees273,74626,835876,092Payroll and Payroll Taxes202,09420,615495,673Travel and Meals196,56560,898856,244Office Expenses48,33414,289221,668Rent57,130-104,286Public Relations85,11410,305140,222Insurance18,851-49,332Automobile Expenses10,056-45,633Web Development--19,500Internet expenses178-14,763Impairment--123,000Other Expenses14,796687119,426$3,436,599$   324,169$10,004,602   The accompanying notes are an integral part of these financial statements.  Page 6 of 17   INTERNATIONAL POWER GROUP, LTD. (A Development Stage Company)   STATEMENTS OF CASH FLOWS (Unaudited)  April 15, 2002(Date of Inception)Nine Months
Ended September 30,Development Stage to September 30, 200620062005Cash Flows From Operations:Net loss$(6,699,151)$(869,704)$(10,004,498)Adjustments to reconcile net loss tonet cash consumed by operating activities:Changes not requiring cash outlay:Common stock issued for services716,250103,428746,569Asset write-off--123,000Options exercised for services70,000340,000142,500Value of options granted3,034,0005,174,000Changes in assets and liabilitiesDecrease (increase) in accounts payable(21,556)40,91661,343Increase in interest receivable(2,441)-(2,441)Net cash consumed by operatingactivities(2,902,898)(385,360)(3,759,527)Cash Flows From Investing Activities:Acquisition of waste disposal permit--(2,000)Investment in Mexican Company--(2,500)Notes receivable-(30,000)(70,000)Repayments of notes receivable65,0005,00070,000Net cash consumed by investingactivities65,000(25,000)(4,500)Cash Flows From Financing Activities:Proceeds of sales of common stock1,914,000788,5003,152,000Proceeds of option exercises270,000-375,000Proceeds from exercise of warrants338,000-876,750Proceeds of loans payable200,000-200,000Net cash provided by financingactivities2,722,000788,5004,603,750Net (decrease) increase in cash(115,898)378,140839,723Cash balance, beginning of period955,62120,038-Cash balance, end of period$      839,723$398,178$ 839,723   The accompanying notes are an integral part of these financial statements.  Page 7 of 17   INTERNATIONAL POWER GROUP, LTD. (A Development Stage Company)   NOTES TO FINANCIAL STATEMENTS September 30, 2006 (Unaudited)    1.  BASIS OF PRESENTATION  The unaudited interim financial statements of International Power Group, Ltd., (IPWG) as of September 30, 2006 and for the three and nine month periods ended September 30, 2006 and September 30, 2005 have been prepared in accordance with accounting principals generally accepted in the United States of America. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for such periods. The results for the nine months ended September 30, 2006 are not necessarily indicative of the results to be expected for the full year ended December 31, 2006.  Certain information and disclosures normally included in the notes to financial statements have been condensed or omitted as permitted by the rules and regulations of the Securities and Exchange Commission, although the Company believes the disclosure is adequate to make the information presented not misleading.  The accompanying unaudited financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2005.  2.  SUPPLEMENTARY CASH FLOWS INFORMATION  There was no cash paid for either interest or income taxes during either of the periods presented.  The following non-cash investing activity took place during the periods presented:  In February 2005, the Company issued 3,400,000 shares as part of its investment in Tratamientos Ambientales de Tecate, S.A. de C. V. (TAT), a Mexican corporation.  On May 23, 2006, the principal of TAT returned to IPWG 1,200,000 of the 3,400,000 shares paid as part of IPWGs investment in TAT, and agreed to cancel an additional 900,000 of the 3,400,000 shares.  A total of 800,000 shares were issued for services during the nine month period ended September 30, 2006, whereas 227,100 shares were issued for services during the nine month period ended September 30, 2005.                    Page 8 of 17


INTERNATIONAL POWER GROUP, LTD. (A Development Stage Company) NOTES TO FINANCIAL STATEMENTS September 30, 2006 (Unaudited)     3. COMMON STOCK AND WARRANTS  The Company issued stock in private placements during the nine month periods ended September 30,  2006 and 2005. A total of 3,259,997 shares of common stock was sold during the nine month period ended September 30, 2006, whereas 16,970,000 shares were sold during the nine month period ended September 30, 2005 .  These sales resulted in net proceeds of $1,914,000 and $788,500, respectively.  During the aforementioned nine month periods, the shares were sold as part of stock units, with each unit consisting of one share of stock and a warrant to purchase one-half share of stock.  For the first nine months of 2006, warrants to purchase 1,629,998 shares of common stock were issued, exercisable at $1.00 per share for eighteen months.  The warrant activity during the nine month period ended  September 30, 2006 is summarized below:  Balance beginning of period7,887,500Warrants issued1,629,998Warrants exercised1,352,000Balance end of period8,165,498These are exercisable as follows:5,435,500@ $  .251,100,000@ $  .751,629,998@ $1.008,165,498


Page 9 of 17   INTERNATIONAL POWER GROUP, LTD. (A Development Stage Company) NOTES TO FINANCIAL STATEMENTS September 30, 2006 (Unaudited)   The following recaps the activity in common stock for the nine month period ended September 30, 2006.   SHARESAMOUNTBalance 12/31/05310,407,100$1,909,306Shares issued for services800,000716,250Shares issued for warrants exercised1,352,000338,000Shares cancelled re:  prior acquisition(1,200,000)-Transfer re:  expired options-1,800,000Shares issued for options exercisedCash2,700,000270,000Services700,00070,000Shares issued for cash, net ofportion allocated to warrants3,259,9971,528,625Transfer value re:  option exercised68,000Transfer value re:  warrants exercised-35,152Balance 9/30/06318,019,097$  6,735,333 4.  SUBSEQUENT EVENT  On October 5, 2006, the Company began the process of acquiring the assets of three Swedish entities named Anovo AB, Add-Power AB and SUPE (collectively Add-Power) for a total consideration of $2,000,000.  These entities hold patents and other intellectual property that the Company believes will be beneficial to its business of developing waste-to-energy facilities and other alternative energy businesses including solar, industrial waste heat recapture and biomass conversion.  The Company plans to complete this acquisition during the fiscal fourth quarter of 2006.  The Company has made an initial payment of $600,000 and will pay the remaining $1,400,000 in six equal payments at two month intervals beginning sixty (60) days after final closing.            Page 10 of 17   ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION Overview: We commenced our development stage in November 2004 upon our acquisition of International Power, Inc. (which was incorporated on April 15, 2002).  We have not had any revenues and only losses since well before that time.  Accordingly, a comparison of our financial information for accounting periods would likely not be meaningful or helpful in making an investment decision regarding our Company.   Plan of Operation.  Our operating plan for the next 12 months and thereafter has four components: (1) to commence construction of the Ensenada, Mexico WTE project, get it operational and progress as far as possible into joint testing of the project in preparation for taking it over and operating it on a commercial basis, (2) initiated sales and licensing of AddPower units upon completion of the acquisition of Add-Power, see where disclosed below, (3) to complete pending negotiations to initiate WTE projects in Saudi Arabia, and (4) to continue our existing program of introducing WTE technology to governments and others charged with responsibility to manage solid waste and/or provide potable water and electricity to various population segments.  In furtherance of this general plan we have self-imposed the following goals:   PROJECTED DATE GoalProjected DateCompletion of Add-Power acquisitionDecember, 2006Processing of site permits in Ensenada, and other municipalities in MexicoFirst Quarter 2007Processing of site permits in the Kingdom of Saudi ArabiaFirst Quarter 2007  Acquisitions.  On October 5, 2006, the Company began the process of acquiring the assets of three Swedish entities named Anovo AB, Add-Power AB and SUPE (collectively Add-Power) for a total consideration of $2,000,000.  These entities hold patents and other intellectual property that the Company believes will be beneficial to its business of developing waste-to-energy facilities and other alternative energy businesses including solar, industrial waste heat recapture and biomass conversion.  The Company plans to complete this acquisition during the fiscal fourth quarter of 2006.  The Company has made an initial payment of $600,000 and will pay the remaining $1,400,000 in six equal payments at two month intervals beginning sixty (60) days after final closing.  Page 11 of 17    Managements Discussion and Analysis of Financial Condition and Results of Operations.  IPWG and its predecessors have been in business for less than two years and have conducted active business operations for only twenty months as of the date of this filing.  The first approximately six months were spent exploring business prospects.  The Company has spent approximately the last twelve months initiating and developing our WTE technology business plan.  Initial steps in that process were negotiation of construction of a WTE Plant in Ensenada.  The second step in developing our business plan was to find a source that could assist the Company to raise the capital required to build and begin operating WTE facilities.  IPWG currently has no income from business operations and does not expect to realize operating revenues  from WTE facilities for approximately two years when it expects that its first WTE facilities will commence revenue generating operations.  Ability to Meet Cash Requirements  Our Company is considered to be in the development stage as defined in the Statement of Financial Accounting Standards (FASB) No. 7.  To date, it has received no significant income from its business operations.  As of September 30, 2006, we had an accumulated loss of $10,004,602 during the development stage.  The expenses that produced this operating loss included non-cash stock based expenses in the sum of $7,063,069 (mostly compensation) and cash expenses of approximately $2,941,533. Notwithstanding this loss figure, the Companys cash position only decreased to $839,723 at September 30, 2006 from $955,621 at December 31, 2005 as the result of the receipt of $2,522,000 in the sale of stock and exercises of options and warrants.  In addition, the Company received loans from individuals in the amount of $200,000 that are due before the end of the fiscal year.  In October 2006, the Company used $600,000 of its cash balance to make the first payment for the acquisition of Add-Power.  With our existing cash reserves, the sale of equity through the exercise of outstanding options and warrants, additional equity sales through private placements or public offerings, and debt financing, we believe we will be able to satisfy our cash requirements for the next twelve months, excluding funds required for the construction of WTE facilities.   There can be no assurance, however, that we will be able to raise the amounts of financing required to operate our business until revenues commence, that we will be able to timely commence revenue generating operations of WTE facility(ies) or that if such facility(ies) commence operation, that we will generate sufficient revenue to be profitable.  IPWG is in the process of raising capital to address approximately $28 MM of financing needs for the next twenty-four months, outside of construction/project financing for specific waste to energy projects. Uses of the capital to be raised include:  Page 12 of 17   1. Working capital to cover overhead and execution costs during construction of waste to energy plants (approximately $19.5MM), additional details provided in the chart below.   2. Working capital to cover the recently completed acquisition of Add-Power and the commercialization of AddPower units (a patented low temperature turbine used for converting waste heat into electricity) of approximately $3.3 MM.   3. Additional development funding to apply AddPower technology to low cost solar power generation, as well as to test the feasibility of integrating the AddPower technology into small scale solar units for office parks, malls, and residential projects ($5.2MM).   In addition to the above, as the Company develops and executes contracts for its waste to energy facilities in the United States, Saudi Arabia, Mexico and elsewhere (these contracts may include long term, ie.7-10 year, commitments for waste disposal, electric and water sales), the Company will use these contracts, and the revenue sources they represent, to secure project specific financing.  The Company expects to have multiple financing sources for project/construction financing on a project by project basis outside of this specific equity raise.  WTE Facility Finance  We intend to finance the construction and operation of WTE facilities through a combination of loans and securitization of income from long-term contracts for tipping fees, power and potable drinking water sales.  We believe that we will be successful in securing such financing although no assurance can be given.  We have entered into an agreement with Marsh USA, Inc., an international insurance broker with the ability to provide financial guaranty insurance and risk management, to locate insurance for our projects.  Research and Development.  We do not expect to establish a discrete program of research or development as part of our business plan.  We expect to expend our research and development efforts towards on the job training. We intend to cooperate with our development partners to develop efficient WTE technology customized to each customers needs.  We intend to share the learning from each project and application to improve all areas of existing WTE technology from air scrubbing to waste disposal.  Purchase of Plant and Equipment.  Central to our business plan is the construction of a WTE plant in Ensenada, Mexico as discussed above.  We also intend to negotiate for the purchase and construction  of WTE plants in the Kingdom of Saudi Arabia. The Kingdom of Saudi Arabias Presidency of Metrology and Environment issued to us in July 2006 an environmental license which will enable us to establish waste-to-energy plants in the country.  The development and construction of each proposed WTE facility will be dependent on: (i) locating appropriate land and obtaining permits for a WTE facility, (ii) obtaining financing (including related financial guaranty and risk insurance) for purchase of materials and equipment and construction of facilities and (iii) securing contracts for delivery of waste and sales of byproducts which will produce revenues sufficient to cover debt service and operation costs.  In the event we are not able to finance one or more proposed WTE facilities, we would be forced to abandon any such projects.  Page 13 of 17     Change in the Number of Employees.  We expect a substantial increase in full and part time employees in the foreseeable future to bolster our technical and marketing departments.  We expect that plant construction projects will be completed by third parties who will be engaged pursuant to contractual agreements.    ITEM 3. CONTROLS AND PROCEDURES.  (a) Evaluation of Disclosure Controls and Procedures:  Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports filed under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon and as of the date of that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective.  (b) Changes in Internal Control over Financial Reporting:  There were no changes in our internal control over financial reporting identified in connection with our evaluation of these controls as of the end of the period covered by this report that affected those controls subsequent to the date of the evaluation referred to in the previous paragraph, including any correction action with regard to deficiencies and material weakness. There were no changes in our internal controls or in other factors that could affect these controls subsequent to the date of their evaluation, including any deficiencies or material weaknesses of internal controls that would require corrective action.           PART II  OTHER INFORMATION          ITEM 1. LEGAL PROCEEDINGS None          ITEM 2. UNREGISTERED SALE OF SECURITIES AND USE OF PROCEEDS. During the quarter ended September 30, 2006, the Company sold 33.63 units consisting of common stock and warrants to eight accredited investors at $ 30,000.00 per unit resulting in gross proceeds of $1,009,000 to the Company .  Each unit consisted of 50,000 shares of our common stock and a warrant to purchase 25,000 shares of common stock.  The warrants expire 18 months from the date of issuance and are exercisable at $ 1.00 per share.  In addition, during this quarter, we issued 1,000,000 shares to four accredited investors who exercised options for gross proceeds to us of $100,000. Finally, during this quarter, we issued 425,000 shares of common stock to  two accredited investors for services rendered. The securities issuances referred to above were exempt from registration pursuant to Section 3(b) and 4(2) of the Securities Act of 1933, as amended (the "Act"), including Rule 506 of Regulation D promulgated under the Act. Furthermore, each recipient who purchased their securities was an "accredited investor" as defined under Regulation D, and represented his or her intentions to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof and appropriate legends were affixed to the share certificates issued in such transactions. No advertisement or general solicitation was used in connection with any offer or sale of such securities. None  ITEM 3. DEFAULTS UPON SENIOR SECURITIES None   Page 14 of 17   ITEM 4. SUBMISSION OF MATTERS TO A VOTE OR SECURITIES HOLDERS None  ITEM 5. OTHER INFORMATION None   ITEM 6. EXHIBITS  See Exhibit Index following the signature page to this Quarterly Report on Form 10-QSB   Page 15 of 17                SIGNATURES   In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: November 20, 2006   International Power Group, Ltd. /s/Peter ToscanoPeter Toscano(President and Chief Executive Officer)                   Page 16 of 17   INDEX TO ATTACHED EXHIBITS   Exhibit 31.1- Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  Exhibit 31.2- Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxely Act of 2002.  Exhibit 32.1- Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxely Act of 2002.  Exhibit 32.2- Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxely Act of 2002.     Page 17 of 17