UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                ----------------

                                   FORM 10-QSB

      [X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the Quarterly Period Ended December 31, 2007

      [_]       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the Transition Period From _______ to _______

                               -------------------

                         Commission File Number 0-29351

                               HYBRID FUELS, INC.
                               ------------------
             (Exact name of registrant as specified in its charter)

                                     NEVADA
         (State or other jurisdiction of incorporation or organization)

                                   88 0384399
                      (I.R.S. Employer Identification No.)


                 237 Main Street, Box 880, Niverville, Manitoba
                    (Address of principal executive offices)

                                     R0A1E0
                                  (Postal Code)

       Registrant's telephone number, including area code: (888) 550-2333


Indicate by check mark whether 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 shorter period that registrant was required to file
such reports), and (2) has been subject to filing requirements 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]

The number of issued and outstanding shares of the registrant's common stock as
of February 15, 2008 was 30,111,733.

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]


<PAGE>

                                TABLE OF CONTENTS

PART-I   FINANCIAL INFORMATION                                              PAGE

Item 1   Financial Statements............................................... F-1

Item 2   Plan of Operation..................................................   1

Item 3   Controls and Procedures............................................   6


PART-II  OTHER INFORMATION                                                  PAGE

Item 1   Legal Proceedings..................................................   6

Item 2   Unregistered Sales of Equity Securities and Use of Proceeds .......   6

Item 3   Defaults Upon Senior Securities....................................   6

Item 4   Submission of Matters to a Vote of Security Holders................   6

Item 5   Other Information..................................................   7

Item 6   Exhibits and Reports on Form 8-K...................................   7

         Signature..........................................................   7

<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)

December 31, 2007

                                                                        Index



Consolidated Balance Sheets...............................................F-1

Consolidated Statements of Operations.....................................F-2

Consolidated Statements of Cash Flows.....................................F-3

Notes to the Consolidated Financial Statements............................F-4



<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Consolidated Balance Sheets
(expressed in U.S. dollars)

<TABLE>
<CAPTION>
                                                                                     December 31,      June 30,
                                                                                         2007            2007
                                                                                          $               $
                                                                                     (unaudited)
<S>                                                                                    <C>                <C>
ASSETS

Current Assets

  Cash                                                                                        252           3,965
--------------------------------------------------------------------------------------------------------------------

Total Current Assets                                                                          252           3,965

Property and Equipment (Note 4)                                                           773,547         820,602

Intangible Assets (Note 5)                                                                477,454         505,784
--------------------------------------------------------------------------------------------------------------------
Total Assets                                                                            1,251,253       1,330,351
====================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

  Accounts payable                                                                        203,938         137,229
  Accrued liabilities                                                                      34,782          30,316
  Note payable and other advances (Note 6)                                                 54,028          50,048
  Due to related parties (Note 7(a) and (c))                                              255,605         229,704
  Due to a former director (Note 8)                                                       326,701         326,701
  Current portion of capital lease obligation (Note 11)                                     8,129           7,349
--------------------------------------------------------------------------------------------------------------------
Total Current Liabilities                                                                 883,183         781,347

Capital Lease Obligation (Note 11)                                                          7,085          10,374

Redeemable and Restricted Common Shares (Note 10(a)(ii))                                  222,767         222,767
--------------------------------------------------------------------------------------------------------------------
Total Liabilities                                                                       1,113,035       1,014,488
--------------------------------------------------------------------------------------------------------------------

Commitments and Contingencies (Notes 1 and 10)

Stockholders' Equity

Common Stock: $0.001 par value; 50,000,000 shares authorized;
30,111,733 shares issued and outstanding (June 30, 2007 - 30,052,933 shares)               30,112          30,053

Additional Paid-in Capital                                                              2,436,788       2,416,847

Common Stock Subscribed                                                                         -          20,000

Donated Capital                                                                           710,741         656,286

Accumulated Other Comprehensive Loss                                                       (1,591)           (582)

Deficit Accumulated During the Development Stage                                       (3,037,832)     (2,806,741)
--------------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity                                                                138,218         315,863
--------------------------------------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity                                              1,251,253       1,330,351
====================================================================================================================

                The Accompanying Notes are an Integral Part of the Consolidated Financial Statements)
</TABLE>

                                      F-1
<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Consolidated Statements of Operations
(expressed in U.S. dollars)
(unaudited)

<TABLE>
<CAPTION>
                                            Accumulated from
                                             January 28, 1998            For the                    For the
                                            (Date of Inception)    Three Months Ended           Six Months Ended
                                              to December 31,         December 31,                December 31,
                                                   2007             2007         2006          2007          2006
                                                     $               $             $            $             $
<S>                                <C>            <C>                <C>          <C>           <C>          <C>
Revenue                                                   -               -            -             -             -
-----------------------------------------------------------------------------------------------------------------------

Expenses

  Deposits and advances written-off                 305,512               -            -             -             -
  Depreciation and amortization                     186,364          39,048            -        78,022             -
  Foreign exchange loss (gain)                       44,948           2,198      (4,985)        14,639        (4,478)
  General and administrative (Note 7(b))          1,896,342          51,276       60,452        98,975       105,686
  Imputed interest (Notes 7(a) and 8)               598,241          19,727       19,727        39,455        39,456
  Research and development                           16,925               -            -             -             -
-----------------------------------------------------------------------------------------------------------------------
Total Operating Expenses                          3,048,332         112,249       75,194       231,091       140,664
-----------------------------------------------------------------------------------------------------------------------

Operating Loss                                   (3,048,332)       (112,249)     (75,194)     (231,091)     (140,664)

Other Income

  Gain on settlement of debt                         10,500               -            -             -             -
-----------------------------------------------------------------------------------------------------------------------

Net Loss                                        (3,037,832)        (112,249)     (75,194)     (231,091)     (140,664)

Other Comprehensive Loss

  Foreign currency translation adjustment            (1,591)           (154)            -       (1,009)             -
-----------------------------------------------------------------------------------------------------------------------
Comprehensive Loss                               (3,039,423)       (112,403)     (75,194)     (232,100)     (140,664)
=======================================================================================================================

Net Loss Per Share - Basic and Diluted                                    -            -         (0.01)        (0.01)
=======================================================================================================================

Weighted Average Shares Outstanding                              30,112,000   26,859,000    30,091,000    26,596,000
=======================================================================================================================



                The Accompanying Notes are an Integral Part of the Consolidated Financial Statements)
</TABLE>


                                      F-2
<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Consolidated Statements of Cash Flows
(expressed in U.S. dollars)
(unaudited)

<TABLE>
<CAPTION>
                                                                                                 For the
                                                                                             Six Months Ended
                                                                                               December 31,
                                                                                            2007          2006
                                                                                             $             $
<S>                                                                                         <C>           <C>
  Operating Activities

    Net loss                                                                                (231,091)     (140,664)

    Adjustments to reconcile net loss to net cash used in operating activities:
      Depreciation and amortization                                                           78,022         3,967
      Donated services                                                                        15,000        15,000
      Imputed interest                                                                        39,455        39,456

    Changes in operating assets and liabilities:

      Prepaid expenses                                                                             -        25,500
      Accounts payable and accrued liabilities                                                71,175        51,243
      Due to related parties                                                                  22,046         4,500
  ------------------------------------------------------------------------------------------------------------------
  Net Cash Used In Operating Activities                                                       (5,393)         (998)
  ------------------------------------------------------------------------------------------------------------------

  Investing Activities

    Purchase of property and equipment                                                        (1,184)            -
  ------------------------------------------------------------------------------------------------------------------
  Net Cash Used in Investing Activities                                                       (1,184)            -
  ------------------------------------------------------------------------------------------------------------------

  Financing Activities

    Advances from related parties                                                              3,855             -
    Repayment of capital lease obligation                                                     (3,799)            -
  ------------------------------------------------------------------------------------------------------------------
  Net Cash Provided By Financing Activities                                                       56             -
  ------------------------------------------------------------------------------------------------------------------
  Effect of Exchange Rate Changes on Cash                                                      2,808        (1,855)
  ------------------------------------------------------------------------------------------------------------------

  Decrease in Cash                                                                            (3,713)       (2,853)

  Cash - Beginning of Period                                                                   3,965         3,533
  ------------------------------------------------------------------------------------------------------------------
  Cash - End of Period                                                                           252           680
  ==================================================================================================================

  Non-cash investing and Financing Activities

    Common shares issued to acquire property and equipment and
    intangible assets                                                                              -     1,413,600
  ==================================================================================================================

  Supplemental Disclosures

    Interest paid                                                                                196             -
    Income taxes paid                                                                              -             -
  ==================================================================================================================


                The Accompanying Notes are an Integral Part of the Consolidated Financial Statements)
</TABLE>


                                      F-3
<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
(expressed in U.S. dollars)
(unaudited)

1.   Nature of Operations and Continuance of Business

     In May 1998, the Company caused a Nevada corporation to be formed under the
     name Polo Equities, Inc. The two companies then merged pursuant to Articles
     of Merger adopted May 28, 1998 and filed with the State of Nevada on June
     10, 1998.

     On May 28, 1998, the Company acquired, by issuing 12,000,000 shares, Hybrid
     Fuels, USA, Inc., with an inception date of January 28, 1998, and 330420
     B.C. Ltd., which changed its name to Hybrid Fuels (Canada) Inc. This
     acquisition was accounted for as a reverse merger whereby the shareholder
     of Hybrid Fuels, USA, Inc. and Hybrid Fuels (Canada) Inc. gained control of
     Polo Equities Inc., which changed its name to Hybrid Fuels, Inc. All
     historical financial statements are those of Hybrid Fuels, USA, Inc. and
     Hybrid Fuels (Canada) Inc. As part of the acquisition, three shareholders
     holding 12,000,000 previously issued shares returned their shares for
     cancellation. For accounting purposes, the acquisition was treated as a
     reverse merger business purchase of Polo Equities Inc. by Hybrid Fuels,
     USA, Inc. and Hybrid Fuels (Canada) Inc. No amount was allocated to the
     intellectual asset as it was acquired from a related party and the transfer
     had no cost basis associated with it. There was no public market for the
     shares of Polo Equities, Inc. at the time of the reverse merger.

     On May 29, 1998 the Company changed its name to Hybrid Fuels, Inc., herein
     "the Company". The Company trades on the OTC Bulletin Board under the
     symbol HRID.

     Pursuant to the above acquisition, the Company acquired a number of
     proprietary technologies with the primary objective of the business being
     to build small farm-scale ethanol facilities that involve a number of
     proprietary technologies exclusively owned by the Company. Other
     proprietary technology involves the use of a bio-gas burner that burns
     manure and bedding straw. This technology eliminates ground and
     ground-water contamination and produces most of the energy required for the
     facility by supplying heat for fermentation and vaporization and for the
     operation of a greenhouse, if desired. Another exclusive proprietary
     technology is a vegetable-based formula that allows diesel and ethanol to
     emulsify. This hybrid fuel reduces particulate emissions without reduction
     in power when used in an unaltered diesel engine.

     On December 14, 2006, the Company entered into an Asset Purchase Agreement
     ("Agreement") to acquire certain assets that includes a steel-construction
     cattle barn and ethanol plant, interior operating systems and equipment, a
     gasifier, facility designs and intellectual property at a total fair value
     of $1,413,600. Pursuant to the terms of the Agreement, the Company issued
     3,720,000 shares of common stock at a fair value of $0.38 per share.

     These consolidated financial statements have been prepared on a going
     concern basis, which implies the Company will continue to realize it assets
     and discharge its liabilities in the normal course of business. As at
     December 31, 2007, the Company had a working capital deficit of $882,931
     and has accumulated losses of $3,037,832 since inception. The continuation
     of the Company as a going concern is dependent upon the continued financial
     support from its shareholders, the ability of the Company to obtain
     necessary equity financing to continue operations, and the attainment of
     profitable operations. These factors raise substantial doubt regarding the
     Company's ability to continue as a going concern. These financial
     statements do not include any adjustments to the recoverability and
     classification of recorded asset amounts and classification of liabilities
     that might be necessary should the Company be unable to continue as a going
     concern.

     The Company expects that future capital requirements for developing and
     expanding technologies will be met through stock offerings by way of
     private placements.

2.   Summary of Significant Accounting Policies

     (a)  Basis of Presentation

          These consolidated financial statements represent the consolidation of
          the Company and its wholly-owned subsidiary, Hybrid Fuels (Canada)
          Inc. The Company's fiscal year end is June 30.

     (b)  Interim Financial Statements

          The interim unaudited financial statements have been prepared on the
          same basis as the annual financial statements and in the opinion of
          management, reflect all adjustments, which include only normal
          recurring adjustments, necessary to present fairly the Company's
          financial position, results of operations for such periods are not
          necessarily indicative of the results expected for a full year or for
          any future period.

                                      F-4
<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
(expressed in U.S. dollars)
(unaudited)

2.   Summary of Significant Accounting Policies (continued)

     (c)  Cash and Cash Equivalents

          The Company considers all highly liquid instruments with a maturity of
          three months or less at the time of issuance to be cash equivalents.

     (d)  Use of Estimates

          The preparation of financial statements in conformity with US
          generally accepted accounting principles requires management to make
          estimates and assumptions that affect the reported amounts of assets
          and liabilities and disclosure of contingent assets and liabilities at
          the date of the financial statements and the reported amounts of
          revenues and expenses during the reporting period. The Company
          regularly evaluates estimates and assumptions related to valuation of
          long-lived assets, stock-based compensation, donated expenses and
          deferred income tax asset valuation allowances. The Company bases its
          estimates and assumptions on current facts, historical experience and
          various other factors that it believes to be reasonable under the
          circumstances, the results of which form the basis for making
          judgments about the carrying values of assets and liabilities and the
          accrual of costs and expenses that are not readily apparent from other
          sources. The actual results experienced by the Company may differ
          materially and adversely from the Company's estimates. To the extent
          there are material differences between the estimates and the actual
          results, future results of operations will be affected.

     (e)  Basic and Diluted Net Income (Loss) per Share

          The Company computes net income (loss) per share in accordance with
          SFAS No. 128, "Earnings per Share" which requires presentation of both
          basic and diluted earnings per shares (EPS) on the face of the income
          statement. Basic EPS is computed by dividing net income (loss)
          available to common shareholders (numerator) by the weighted average
          number of common shares outstanding (denominator) during the period.
          Diluted EPS gives effect to all dilutive potential common shares
          outstanding during the period including stock options, using the
          treasury stock method, and convertible preferred stock, using the
          if-converted method. In computing diluted EPS, the average stock price
          for the period is used in determining the number of shares assumed to
          be purchased from the exercise of stock options or warrants. Diluted
          EPS excludes all dilutive potential common shares if their effect is
          anti-dilutive.

     (f)  Foreign Currency Translation

          The functional currency of the wholly-owned subsidiary is the Canadian
          dollar. The financial statements of this subsidiary are translated to
          United States dollars under the current rate method in accordance with
          SFAS No. 52 "Foreign Currency Translation". Under the current rate
          method, all assets and liabilities are translated at the rates of
          exchange in effect at the balance sheet date and revenues and expenses
          are translated at the average rates of exchange during the year. The
          effect of this translation is recorded in a separate component of
          stockholders' equity. A cumulative translation adjustment of $1,591 as
          of December 31, 2007 has been included in accumulated other
          comprehensive loss in the accompanying consolidated balance sheet.
          Gains and losses arising on translation or settlement of foreign
          currency denominated transactions or balances are included in the
          determination of income.

          Transactions in foreign currencies are recorded at the approximate
          rate of exchange at the transaction date. Monetary assets and
          liabilities resulting from these transactions are translated at the
          rate of exchange in effect at the balance sheet date. All differences
          are recorded in the results of operations.

     (g)  Comprehensive Loss

          SFAS No. 130, "Reporting Comprehensive Income," establishes standards
          for the reporting and display of comprehensive loss and its components
          in the financial statements. As at December 31, 2007 and 2006, the
          Company's only component of comprehensive loss was foreign currency
          translation adjustments.


                                      F-5
<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
(expressed in U.S. dollars)
(unaudited)

2.   Summary of Significant Accounting Policies (continued)

     (h)  Financial Instruments

          The fair values of certain financial instruments, including cash,
          accounts payable, accrued liabilities, notes and advances payable, due
          to related parties and due to a former director approximate their
          carrying values due to the immediate or short-term maturity of these
          financial instruments. The fair value of the capital lease obligation
          is estimated to approximate its carrying value based on borrowing
          rates currently available to the Company for loans with similar terms.
          The Company's operations are in Canada which results in exposure to
          market risks from changes in foreign currency rates. The financial
          risk is the risk to the Company's operations that arise from
          fluctuations in foreign exchange rates and the degree of volatility of
          these rates. Currently, the Company does not use derivative
          instruments to hedge exposure to foreign currency risk.

     (i)  Income Taxes

          The Company accounts for income taxes using the asset and liability
          method in accordance with SFAS No. 109, "Accounting for Income Taxes".
          The asset and liability method provides that deferred tax assets and
          liabilities are recognized for the expected future tax consequences of
          temporary differences between the financial reporting and tax bases of
          assets and liabilities, and for operating loss and tax credit
          carryforwards. Deferred tax assets and liabilities are measured using
          the currently enacted tax rates and laws that will be in effect when
          the differences are expected to reverse. The Company records a
          valuation allowance to reduce deferred tax assets to the amount that
          is believed more likely than not to be realized.

     (j)  Stock-based Compensation

          Prior to January 1, 2006, the Company accounted for employee
          stock-based awards under the recognition and measurement provisions of
          Accounting Principles Board Opinion No. 25, "Accounting for Stock
          Issued to Employees" using the intrinsic value method of accounting.
          Effective January 1, 2006, the Company adopted the fair value
          recognition provisions of SFAS No. 123R "Share Based Payments", using
          the modified prospective transition method. The Company had not issued
          any stock options and had no unvested share based payments prior to
          January 1, 2006. Accordingly, there was no effect on the Company's
          reported loss from operations, cash flows or loss per share as a
          result of adopting SFAS No. 123R.

          All transactions in which goods or services are the consideration
          received for the issuance of equity instruments are accounted for
          based on the fair value of the consideration received or the fair
          value of the equity instrument issued, whichever is more reliably
          measurable.

     (k)  Property and Equipment

          Property and equipment are recorded at cost. Amortization has been
          provided using the following rates and methods:

          Building                             10 years straight line
          Equipment                            5 years straight line
          Computer Equipment                   3 years straight line
          Tractor                              5 years straight line

     (l)  Intangible Assets

          Intangible assets consist of intellectual property, including
          engineering and proprietary design of a hydroponics green grass
          growing system and are recorded at cost. Amortization of these costs
          has been provided over their estimated useful life of 5 years using
          the straight line method.

                                      F-6
<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
(expressed in U.S. dollars)
(unaudited)

2.   Summary of Significant Accounting Policies (continued)

     (m)  Long-lived Assets

          In accordance with SFAS No. 144, "Accounting for the Impairment or
          Disposal of Long-Lived Assets", the Company tests long-lived assets or
          asset groups for recoverability when events or changes in
          circumstances indicate that their carrying amount may not be
          recoverable. Circumstances which could trigger a review include, but
          are not limited to: significant decreases in the market price of the
          asset; significant adverse changes in the business climate or legal
          factors; accumulation of costs significantly in excess of the amount
          originally expected for the acquisition or construction of the asset;
          current period cash flow or operating losses combined with a history
          of losses or a forecast of continuing losses associated with the use
          of the asset; and current expectation that the asset will more likely
          than not be sold or disposed significantly before the end of its
          estimated useful life. Recoverability is assessed based on the
          carrying amount of the asset and its fair value which is generally
          determined based on the sum of the undiscounted cash flows expected to
          result from the use and the eventual disposal of the asset, as well as
          specific appraisal in certain instances. An impairment loss is
          recognized when the carrying amount is not recoverable and exceeds
          fair value.

     (n)  Recently Issued Accounting Pronouncements

          In December 2007, the Financial Accounting Standards Board ("FASB")
          issued SFAS No. 141 (revised 2007) "Business Combinations". SFAS No.
          141 (revised 2007) establishes principles and requirements for how the
          acquirer of a business recognizes and measures in its financial
          statements the identifiable assets acquired, the liabilities assumed,
          and any noncontrolling interest in the acquiree. The statement also
          provides guidance for recognizing and measuring the goodwill acquired
          in the business combination and determines what information to
          disclose to enable users of the financial statements to evaluate the
          nature and financial effects of the business combination. SFAS No. 141
          (revised 2007) applies prospectively to business combinations for
          which the acquisition date is on or after the beginning of the first
          annual reporting period beginning on or after December 15, 2008. The
          adoption of this statement is not expected to have a material effect
          on the Company's future reported financial position or results of
          operations.

          In December 2007, the FASB issued SFAS No. 160 "Noncontrolling
          Interests in Consolidated Financial Statements-an amendment of ARB No.
          51". SFAS No. 160 establishes accounting and reporting standards for
          the noncontrolling interest in a subsidiary and for the
          deconsolidation of a subsidiary. SFAS No. 160 is effective for fiscal
          years, and interim periods within those fiscal years, beginning on or
          after December 15, 2008. The adoption of this statement is not
          expected to have a material effect on the Company's future reported
          financial position or results of operations.

          In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option
          for Financial Assets and Financial Liabilities - Including an
          Amendment of FASB Statement No. 115". This statement permits entities
          to choose to measure many financial instruments and certain other
          items at fair value. Most of the provisions of SFAS No. 159 apply only
          to entities that elect the fair value option. However, the amendment
          to SFAS No. 115 "Accounting for Certain Investments in Debt and Equity
          Securities" applies to all entities with available-for-sale and
          trading securities. SFAS No. 159 is effective as of the beginning of
          an entity's first fiscal year that begins after November 15, 2007.
          Early adoption is permitted as of the beginning of a fiscal year that
          begins on or before November 15, 2007, provided the entity also elects
          to apply the provision of SFAS No. 157, "Fair Value Measurements". The
          adoption of this statement is not expected to have a material effect
          on the Company's future reported financial position or results of
          operations.

          In September 2006, the FASB issued SFAS No. 157, "Fair Value
          Measurements". The objective of SFAS No. 157 is to increase
          consistency and comparability in fair value measurements and to expand
          disclosures about fair value measurements. SFAS No. 157 defines fair
          value, establishes a framework for measuring fair value in generally
          accepted accounting principles, and expands disclosures about fair
          value measurements. SFAS No. 157 applies under other accounting
          pronouncements that require or permit fair value measurements and does
          not require any new fair value measurements. The provisions of SFAS
          No. 157 are effective for fair value measurements made in fiscal years
          beginning after November 15, 2007. The adoption of this statement is
          not expected to have a material effect on the Company's future
          reported financial position or results of operations.

                                      F-7
<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
(expressed in U.S. dollars)
(unaudited)

2.   Summary of Significant Accounting Policies (continued)

     (o)  Recently Adopted Accounting Pronouncements

          In June 2006, the FASB issued FASB Interpretation No. 48, "Accounting
          for Uncertainty in Income Taxes, an interpretation of FASB Statements
          No. 109" ("FIN 48"). FIN 48 clarifies the accounting for uncertainty
          in income taxes by prescribing a two-step method of first evaluating
          whether a tax position has met a more likely than not recognition
          threshold and second, measuring that tax position to determine the
          amount of benefit to be recognized in the financial statements. FIN 48
          provides guidance on the presentation of such positions within a
          classified statement of financial position as well as on
          derecognition, interest and penalties, accounting in interim periods,
          disclosure, and transition. FIN 48 is effective for fiscal years
          beginning after December 15, 2006. The adoption of this statement did
          not have a material effect on the Company's reported financial
          position or results of operations.

3.   Asset Purchase Agreement

     On December 14, 2006, the Company entered into an Asset Purchase Agreement
     ("Agreement") to acquire certain assets that include a steel-construction
     cattle barn and ethanol plant, interior operating systems, equipment, a
     gasifier and facility designs at fair value of $851,618, and intellectual
     property at fair value of $561,982, totaling $1,413,600. Pursuant to the
     terms of the Agreement, the Company issued 3,720,000 shares of common stock
     at a fair value of $0.38 per share. Of these issued shares a director of
     the Company and the President of the Company received a total of 1,860,000
     shares and a shareholder received 1,193,333 shares.

4.   Property and Equipment

<TABLE>
<CAPTION>
                                                                                   December 31,        June 30,
                                                                                       2007              2007
                                                                  Accumulated      Net Carrying      Net Carrying
                                                     Cost        Amortization          Value            Value
                                                     $                $                 $                $
     <S>                                            <C>               <C>                 <C>          <C>
     Buildings                                      765,160           80,080              685,080      723,652
     Equipment                                       86,459           17,363               69,096       77,812
     Computer equipment                               1,184              177                1,007            -
     Tractor under capital lease                     22,955            4,591               18,364       19,138
     ---------------------------------------------------------------------------------------------------------------
                                                    875,758          102,211              773,547      820,602
     ===============================================================================================================
</TABLE>

     The tractor is under capital lease.

5.   Intangible Assets

<TABLE>
<CAPTION>
                                                                                   December 31,        June 30,
                                                                                       2007              2007
                                                                  Accumulated      Net Carrying      Net Carrying
                                                     Cost         Amortization        Value             Value
                                                       $               $                $                 $
<S>                                                    <C>           <C>               <C>              <C>
     Intellectual property rights                      561,982       84,528            477,454          505,784
     ===============================================================================================================
</TABLE>


     The following is the estimated annual amortization expense for each of the
next five years:

                                           $

                        2008             84,070
                        2009            112,400
                        2010            112,400
                        2011            112,400
                        2012             56,184
                                     -----------
                                        477,454
                                     ===========

                                      F-8
<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
(expressed in U.S. dollars)
(unaudited)

6.   Note Payable and Other Advances

     (a)  On September 15, 2000, the Company issued a note to a company
          controlled by the President of the Company for Cdn$50,000 payable on
          or before September 15, 2001 plus 8% interest. The Company extended
          repayment of the note until the completion of a financing arrangement.
          The note payable was $50,970 after translation into U.S. dollars as at
          December 31, 2007 (June 30, 2007 - $47,215).

     (b)  As at December 31, 2007, cash advances totalling $3,058 (Cdn$3,000)
          (June 30, 2007 - $2,833 (Cdn$3,000)) from unrelated parties are
          non-interest bearing, unsecured and due on demand.


7.   Related Party Transactions

     (a)  A shareholder is owed $204,652 (June 30, 2007 - $200,677) for payment
          of rent, office expenses and professional fees on behalf of the
          Company. Imputed interest of $14,952 (2006 - $14,953), calculated at a
          rate of 15% per annum, was charged to operations and treated as
          donated capital. This amount owing is unsecured, non-interest bearing
          and due on demand.

     (b)  During the six month period ended December 31, 2007, the Company
          recognized a total of $15,000 (2006 - $15,000) for donated services
          provided by the President of the Company.

     (c)  At December 31, 2007, officers of the Company are owed $50,953 (June
          30, 2007 - $29,027) for advances and expenses paid on behalf of the
          Company. This amount is unsecured, non-interest bearing and due on
          demand.


8.   Amounts Owing to a Former Director

     The former President, who was also a director of the Company, is owed
     $326,701 as at December 31, 2007 (June 30, 2007 - $326,701). This amount is
     unsecured, non-interest bearing and due on demand. During the six month
     period ended December 31, 2007, imputed interest of $24,503 (2006 -
     $24,503), calculated at a rate of 15% per annum, was charged to operations
     and treated as donated capital.


9.   Common Stock

     On September 18, 2007, the Company issued 58,800 shares of common stock at
     $0.34 per share for proceeds of $20,000. The proceeds were received in May
     2007 and recorded as common stock subscribed as at June 30, 2007.


                                      F-9
<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
(expressed in U.S. dollars)
(unaudited)

10.  Commitments and Contingencies

     (a)  Although the Company is not involved in any legal proceedings, several
          issues may eventually lead to the Company instituting legal action as
          follows:

          i)   On August 4, 1998 and March 23, 1999, the Company's former Board
               of Directors authorized the issuance of 1,000,000 and 900,000
               shares respectively to individuals without consideration. On
               August 21, 1999, the current Board of Directors resolved that
               share certificates representing ownership of these 1,900,000
               shares were issued without adequate consideration being paid to
               the Company and were therefore not fully paid and non-assessable.
               The Company cancelled the share certificates and indemnified the
               transfer agent, for any costs or liability that may incur arising
               out of the cancellation of such shares. The transfer agent
               removed the 1,900,000 shares from the stockholder list
               effectively reversing the issuance. Six of the cancelled
               certificates, totaling 550,000 shares, have been endorsed and
               returned to the Company for cancellation. The contingencies
               regarding the cancelled shares relate to anyone who may have
               subsequent holder rights, and possibly the individuals who were
               issued those shares who may claim that they were issued for due
               consideration. The Company has determined that there is no amount
               to be accrued for future liabilities associated with claims by
               subsequent shareholders. To date when these shares have been
               delivered to a broker for possible resale, the broker has
               informed the Company or the transfer agent and the shares are
               kept and cancelled. The Company will continue to monitor this
               issue. No other contingent liabilities have been included, as
               some of the previous directors have been informed verbally of the
               cancellation. No formal legal demand has been made as former
               management has failed to provide addresses despite a number of
               requests.

          ii)  Between October 1998 and June 1999, the management at that time
               sold a total of 361,120 common shares of the Company to 34
               subscribers on the basis of an Offering Memorandum ("Offering")
               that contained a significant number of inaccuracies. A total of
               $223,000 was raised pursuant to this Offering. Management had
               concerns regarding possible misstatements, omissions and
               misleading statements. On the advice of legal counsel, the
               Company offered these 34 subscribers the option of receiving
               restricted stock as the Company did not have the funds to repay
               these amounts to the subscribers. Those who opted to receive
               restricted stock were also given an undertaking that they would
               receive a rescission offer when the Company was in a position to
               repay their money plus appropriate interest, in return for a
               return of the restricted stock, or they could elect to retain the
               stock. To date, 23 subscribers, have, pursuant to this offer
               received 232,753 shares, representing $158,000. The remaining 11
               subscribers, who paid $65,000 for 128,367 shares, did not respond
               to the offer. These subscriptions were recorded as redeemable and
               restricted common shares until rescission rights have been
               revoked.

     (b)  On December 16, 2006, the Company entered into a Joint Venture
          Agreement with a third party to develop two facilities that will
          utilize the Company's proprietary technology. The Company is obligated
          to contribute its proprietary technology having an equivalent agreed
          upon value of Cdn$9,000,000.

     (c)  The Company is committed to a lease for the land where its building is
          located. The Company is required to pay monthly rent of Cdn$1,000 up
          to December 31, 2008 when the lease expires.


                                      F-10
<PAGE>

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
(expressed in U.S. dollars)
(unaudited)

11.  Capital Lease Obligation

     During the year ended June 30, 2007, the Company assumed a leasing
     arrangement involving equipment. The lease is for a term expiring on
     October 31, 2009, and requires payments of $725 (Cdn$711) per month.

     The following represents future minimum lease payments under capital leases
     and the present value of the minimum lease payments as of December 31,
     2007:

                                                                            $

     2008                                                                 4,347
     2009                                                                 8,694
     2010                                                                 2,898
     ---------------------------------------------------------------------------

     Total lease payments                                                15,939
     Less: Amounts representing interest at 4.9% per annum                 (725)
     ---------------------------------------------------------------------------

     Present value of minimum lease payments                             15,214
     Current portion of obligation under capital lease                   (8,129)
     ---------------------------------------------------------------------------

     Long-term portion of obligation under capital lease                  7,085
     ===========================================================================

12.  Subsequent Event

     On January 24, 2008, the Company received share subscriptions of Cdn$2,000
     for 11,600 shares of common stock to be issued.





                                      F-11
<PAGE>

ITEM 2.  Plan of Operation
--------------------------

This Form 10-QSB contains forward-looking statements. The words "anticipate",
"believe", "expect", "plan", "intend", "estimate", "project", "could", "may",
"foresee", and other similar expressions identify forward-looking statements
that involve risks and uncertainties. The reader should not place undue reliance
on forward-looking statements in this Form 10-QSB because of their inherent
uncertainty. The following discussion and analysis should be read in conjunction
with the Financial Statements and Notes thereto and other financial information
included in this Form 10-QSB and our Form 10-KSB for the fiscal year ended June
30, 2007. Actual results could differ materially from the results discussed in
the forward-looking statements. Hybrid Fuels Inc. ("the Company") assumes no
responsibility to correct or update the forward-looking statements as
circumstances change and therefore, the forward-looking statements should be
assumed to speak only as at the date of the filing of this report.

Hybrid Fuels Inc. is a development-stage company and has had no income since the
inception date of June 10, 1998. The Company is unlikely to have any significant
cash flow until after the quarter ending March 31, 2008.

As at June 30, 2007, our independent auditors raised a substantial doubt about
our ability to continue as a going concern because we have not generated any
revenues and have conducted operations at a loss since inception. As of December
31, 2007, the Company has a working capital deficit of $(882,931).

Although the Company is in the developmental stages, the process behind Hybrid
Fuels' intended business has been researched and developed for more than a
decade. A facility that integrated the process described below was constructed
and operated near Dalum, Alberta from 1994 to 1996. The Dalum facility was
designed to prove the concepts and included all of the wet ethanol-producing and
cattle-feeding features of a full-scale commercial operation. The Dalum project
was also the source of the actual operating results that are referred to later
in this report.

After the Dalum facility was closed in 1996, further research enabled us to
modify the facility's material requirements, improve the building designs,
select the latest equipment and refine the process.

At this time the Company's intended principal business is to integrate cattle
feeding and finishing with the production of electrical power.

On December 14, 2006 the Company acquired a commercial-ready facility situated
in Oyama, BC, Canada from a Hybrid Fuels Inc. shareholder consortium that
financed its construction. This facility includes all equipment and
infrastructure necessary to utilize the Company's proprietary technology
including a cattle barn, ethanol-producing plant, gasifier/burner (manure/straw
burning unit) and a hydroponics barley-grass growing system. The facility was
acquired for total consideration of 3.72 million restricted common shares of
Hybrid Fuels Inc. valued at $1,413,600.

The purpose of this facility is to demonstrate the economic feasibility of the
`Hybrid Fuels' system. Once this first facility is operating, the intention is
to use it for demonstration and training purposes and to earn revenue from its
operation. Our projections indicate that the facility will show sufficient
profitability to make it possible for us to get approval for financing
subsequent facilities.

                                        1
<PAGE>

The proposed facilities are planned to consist of a cattle barn, a hydroponics
barley-grass growing system, an ethanol-producing plant, a gasifier/burner
(manure/straw burning unit), a hot-air turbine and generator.

The cattle barn at the Oyama facility has been designed to accommodate 200 head
of cattle and the hydroponics barley-grass growing system. The barns have also
been designed to raise beef cattle under controlled atmospheric conditions. The
buildings are constructed from prefabricated metal, insulated sufficiently to
keep the cattle warm in cold weather and cool in warm weather. The barns include
air-to-air heat exchangers that in cold weather, exchange the warm, heavily
moisture-laden barn air with fresh air from outside, that is heated and dried as
it passes through a heat exchanger.

Once the facility is operational, it is expected that the cattle will be fed
starting with 50 head and adding another 50 approximately every four weeks until
the barn is at full capacity. As we gain experience with the facility, we intend
to operate the barn continuously at full capacity during the subsequent 100-day
feeding cycles. Until the Company is operating a beef processing facility it is
intended that the cattle will be sold to processors at a price reflective of its
high quality.

The cattle barn includes floor space for six individual pens - five occupied
pens and one pen remaining empty and free of manure and bedding waste. Cattle
are to be moved to a clean pen every five days on a rotational basis. The manure
and bedding straw is removed from the pens and destroyed in the gasifier/burner
that provides heat energy for the ethanol production and the hydroponics feed
system.

In the ethanol plant, grains are fermented and then distilled to produce the wet
ethanol. The heat is supplied from the burning of the used bedding straw and
manure in the gasifier/burner. The ethanol production process also generates a
high protein product, called "distillers mash" and a liquid byproduct called
"stillage water." The mash and liquid is supplemented by barley grass and
creates an excellent feed for the cattle. The expected weight gain is an average
of four pounds a day per head during the planned 100-120 day feeding cycle.

Once the facility is operating at full capacity, we project that the ethanol
production will be approximately 200 US gallons (800 litres) per day. The
ethanol is intended to be "de-natured" with approximately 2% diesel fuel so
there is no pure ethanol accessible in the plant. Ethanol produced by the first
facility is expected to be used in the gasification process. It is expected that
using ethanol in this process will result in a significant increase in heat
energy, ie. BTUs, for the purpose of electrical power generation.

The hydroponics barley-grass growing system is expected to produce a ration of
10-15 pounds per day of fresh grass per animal, year round, regardless of
climate. We believe the grass unit for the 200-head barn represents the
approximate equivalent of 400 acres of grass growing land.

The Company has no immediate sources of funding except through private sources.
Until one facility is fully operational and demonstrates cash flow Hybrid Fuels
Inc., and our wholly-owned subsidiary Hybrid Fuels (Canada), expects to have
limited access to banks, trust companies, and other traditional lending sources.

Estimated operating costs to March 31, 2008 total $280,000. This estimate
includes $120,000 for cattle and feed, $90,000 for payables (excluding related

                                        2
<PAGE>

party loans and accrued executive salaries), $40,000 for technical support and
labor and $30,000 for contingencies and other operating expenses. These
estimates are subject to change based on conditions outside of management's
control and actual experience with operating the first facility.

Operations are expected to commence once the initial testing of the facility's
gasifier/burner, air exchange and feed system are completed and ready for the
first delivery of cattle. Management expects that this will be completed before
the quarter ending March 31, 2008. However, it must be emphasized that any delay
in the completion of these tasks will also delay commencement of operations. It
is difficult to establish the start date of operations since the Company is
relying on third parties to complete the facility which includes work by testing
consultants and timely provision of equipment and installation. Therefore,
completion of these tasks is not entirely under our control.

The facility will not be run at full capacity until approximately four months
have passed from the facility becoming operational. During this four-month
period we believe that we will have sufficient data to estimate revenue streams
and expenses to establish comprehensive business plans.

The Company expects to expand the size of the cattle barn in future facilities
to accommodate 400 head of cattle for economy of scale. The Company believes the
additional heat energy that will be generated as a result of this expansion
makes it feasible to develop renewable energy generation systems. It is expected
that each facility could produce approximately 400 US gallons (1,600 litres) of
ethanol daily, generate up to one megawatt of power, finish up to 1,200 head of
cattle annually and provide up to 5 full-time jobs. The hydroponics section of
the 400-head barn is designed to have the grass growing capacity equivalent to
approximately 800 acres of grassland.

It is intended that future facilities will be constructed for the Company by
independent contractors on privately-owned farms after a written, contractual
agreement is made between the Company and the operator(s).

On December 16, 2006 a formal agreement was signed between the Company's
wholly-owned subsidiary Hybrid Fuels (Canada) Inc. and the A4 Bar Cattle Company
Ltd., covering the joint venture between the two companies, known as the
'Siksika A4 Bar Farm Operations Project.' The site of the project is located
approximately 60 miles east of Calgary, Alberta, Canada on the land of the
Siksika First Nations. Construction of the Project was expected to commence in
2007 but has been delayed up to this point due to the inability of the A4 Bar
Cattle Company Ltd. to obtain the necessary financing.

The Project is planned to consist of the construction of two facilities - each
utilizing Hybrid Fuels' proprietary technology together with the industry
expertise and cattle provided by A4 Bar Cattle Company Ltd.

The two facilities are expected to produce a combined daily volume of
approximately 800 US gallons (3,200 litres) of ethanol per day, generate up to 2
megawatts of power, finish up to 2,400 head of cattle annually, and provide up
to 10 full time jobs. The internal hydroponics barley grass growing system is
designed to produce a 10-15 pound ration of grass per head of cattle per day.

The Company anticipates conducting further research and development with respect
to the following:

1. Researching efficiencies in facility construction and operation;
2. Researching new technologies; consulting with various technical researchers
and agriculture officials.

                                       3
<PAGE>

If resources permit, the amount we anticipate spending on research and
development for the fiscal year ending June 30, 2008 is approximately $500,000.

Once we have a fully operational facility, and have proven the technology and
processes, we intend that our subsidiary, Hybrid Fuels (Canada) Inc., will
operate it and generate revenue from the sale of electrical power and finished
cattle.

Efforts to improve every aspect of the whole operation continue with positive
results. Management believes the overall Hybrid Fuels program involving
progressive and environmental sensitivity towards cattle feeding, maintenance
and processing will present a chemical-free product cycle which offers a world
class benchmark for the industry.


Results of Operations For The Three Months Ended December 31, 2007
------------------------------------------------------------------

The net loss for the present quarter is $(112,249) compared to $(75,194) for the
comparable quarter last year. The difference is largely attributable to the
quarterly depreciation and amortization expense of $39,048 for the Oyama
facility that was acquired in December 2006. There was also a foreign-exchange
loss in the present quarter of $2,198.

At the end of the quarter, the Company had cash of $252 compared to $3,965 at
June 30, 2007. As at December 31, 2007, the Company had a working capital
deficit of $(882,931) compared to $(777,382) as at June 30, 2007.

The President and CEO of the Company donated services in the amount of $7,500 in
the current quarter.

Although we currently do not have significant cash reserves, related parties
have indicated a willingness to provide operating capital in exchange for
restricted common shares. These related parties are under no obligation and no
assurances can be given that they will continue to do so. The Company is also
actively pursuing other potential sources of financing.


Risk Factors
------------

The following factors have affected or could affect the Company's actual results
and could cause such results to differ materially from those expressed in any
forward-looking statements made by the Company. Investors should consider
carefully the following risks and speculative factors inherent in and affecting
the business of the Company and an investment in the Company's common stock.

1. Our cash reserves may not be adequate to cover our costs of operations. To
date, we have covered our operating losses by loans from shareholders or private
placements of securities. We expect to fund our general operations and marketing
activities in the near term with our current cash, that was obtained from loans
from shareholders and/or the sale of securities. However, our cost estimates may
not include enough provisions for any contingency, unexpected expenses or
increases in costs that may arise.

2. We will need to raise additional capital to develop operations and to pay
ongoing expenses. If additional funds are raised through the issuance of equity,
our shareholders' ownership will be diluted. There can be no assurance

                                       4
<PAGE>

that additional financing will be available on terms favorable to us or at all.
If funds are not available on terms acceptable to us, we may not be able to
continue our business.

3. We have not sought protection of our intellectual property through any
patents, but have elected to protect it through non-disclosure agreements. Our
intended business may be adversely affected if we are unable to adequately
protect our intellectual property. Because our intellectual property is not
protected by patents, others may seek to discover and use our intellectual
property. We cannot provide assurance that our intellectual property rights will
not be invalidated, circumvented or challenged. If we are found to infringe on
the intellectual property rights of others, we may not be able to continue to
market our process, or we may have to enter into costly license or settlement
agreements. Third parties may allege infringement by us with respect to past,
current or future intellectual property rights. Any claim of infringement,
regardless of merit, could be costly, time consuming and require us to develop
non-infringing technology or enter into royalty, licensing or settlement
agreements. These agreements could be on terms unfavorable or unacceptable to us
and could significantly harm the development of our business. In the future, we
may also have to enforce our intellectual property rights through litigation.
Any such enforcement could also result in additional costs and could materially
affect our financial condition and our business.

4. We have a history of operating losses and an accumulated deficit, as of
December 31, 2007, of ($3,037,832).

5. Our ability to begin operations and to generate revenues and profits is
subject to the risks and uncertainties encountered by development stage
companies. Our future revenues and profitability are unpredictable. We currently
have no operating activities that will produce revenue. Furthermore, we cannot
provide assurance that we will be successful in raising the money necessary to
begin or expand operations.

6. We have no operating history which makes an evaluation of our future
prospects very difficult. There can be no assurances that we will be able to
develop operations that are profitable or will operate as intended. If the
market for our facilities fails to develop, or develops more slowly than
anticipated, we may not be able to meet our expenses and may not achieve
profitable results.

7. Our common stock is not widely traded, and, as a result, the prices quoted
for our stock may not reflect its fair market value. Because of the low volume
of trading in our common stock, our stockholders may find it difficult to sell
their shares.

8. We currently have no insurance covering our operations, potential products,
services or directors and officers.

9. Future performance depends on the ability to attract, train, and retain
management, technical and marketing personnel. In the future, loss of one or
more key employees could negatively impact us, and there is no "key man" life
insurance in force at this time. There can be no assurance that we will attract
or maintain key employees or other needed personnel.

10. The production of beef and electrical power are both highly competitive.
Giant companies compete in both markets with significant competitive
advantages.Many competitors of the Company have significantly greater resources
and experience than the Company. Additionally, competitors of the Company may

                                       5
<PAGE>

have better access to financial and marketing resources superior to those
available to the Company. With the resources and name recognition that

competitors possess, the Company may face severe adversity entering the markets
it is pursuing. There is no assurance the Company will be able to overcome the
competitive disadvantages it will face as a small, start-up company with limited
capital.

11. The continual shift in supply and demand factors create volatility in cattle
pricing that could result in a loss on cattle finishing.

12. There are a number of technological challenges that must be successfully
addressed to complete our development and commercialization efforts. Our
inability to address such technological challenges could adversely affect our
ability to acquire customers for our technology. Delays in development, as a
result of technological challenges or other factors, may result in the
introduction or commercial acceptance of our technology later than anticipated.

13. Since May 2003, the Canadian beef market has suffered as a consequence of
the United States limiting imports from Canada because of an isolated case of
Bovine Spongiform Encephalopathy (BSE). A recurrence of BSE in Canada could
potentially have an adverse effect on the Company even though the age of
finished cattle raised within our controlled facilities are planned to be under
the current 30-month age restriction on beef imported into the U.S.

ITEM 3.  Controls and Procedures
--------------------------------

Based on an evaluation as of the end of the period, the Company's Principal
Executive Officer and Principal Financial Officer has concluded that the
Company's disclosure controls and procedures as defined in Exchange Act Rules
13a-15(e) and 15d-15(e) under the Securities Exchange Act 1934 (the "Exchange
Act") are effective to ensure that information required to be disclosed by the
Company in reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in
Securities and Exchange Commission rules and forms.

There were no significant changes in the Company's internal controls or in other
factors that could significantly affect these controls subsequent to the date of
their evaluation. There were no significant deficiencies or material weakness,
and therefore there were no corrective actions taken.



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

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

No legal proceedings are threatened or pending against the Company or any of its
officers or directors. Further, none of the Company's officers or directors or
affiliates of the Company are parties against the Company or have any material
interest in actions that are adverse to the Company's interests.

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

N/A

Item 3. Defaults Upon Senior Securities
---------------------------------------

N/A

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

N/A

                                       6
<PAGE>

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

N/A

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


Exhibit 31.1 Principal Executive Officer Certification (section 302 of the
Sarbanes-Oxley Act of 2002)

Exhibit 31.2 Principal Financial Officer Certification (section 302 of the
Sarbanes-Oxley Act of 2002)

Exhibit 32.1 Principal Executive Officer Certification (section 906 of the
Sarbanes-Oxley Act of 2002)

Exhibit 32.2 Principal Financial Officer Certification (section 906 of the
Sarbanes-Oxley Act of 2002)


Signature
---------

In accordance with the requirements of the Securities Exchange Act, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.


HYBRID FUELS, INC.

By: /s/ Douglas Dickie
----------------------

Name:  Douglas Dickie
Title: President/CEO/CFO


Dated: February 19, 2008







                                       7