__________________________________________

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

                                    FORM 10-QSB

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

                 For the Quarterly Period Ended September 30, 2003

        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                                       880384399
   (State or other jurisdiction
   of incorporation or organization)     (I.R.S. Employer Identification No.)

        PO Box 41118 RPOS Winfield, B.C.,                            V1V 1Z7
       (Address of  principal executive offices)                    (Zip Code)

Registrant's telephone number, including area code: 250-868-0600


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  []

The number of shares outstanding of the registrant's common stock as of November
10, 2003 was 22,013,100.

The number of shares issued of the registrant's common stock as of November 10,
2003 was 22,245,853.

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















================================================================================
                                 HYBRID FUELS, INC.

                                  FORM 10-QSB

                      For the quarter ended September 30, 2003


INDEX

1) Part I - Financial Information                                   Page
            Item 1. Consolidated Financial Statements
             Consolidate Balance Sheet as of March 31, 2003         F-3

             Consolidated Statements of operations for the
             three months and nine months ended March 31, 2003
             and 2002                                               F-4

             Consolidated Statements of cash flows for the nine
             months ended March 31, 2003 and 2002                   F-5

             Notes to the Consolidated Financial Statements         F-6


             Item 2.   Management's Discussion and Analysis or
                       Plan of Operation                            11

2) Part II - Other Information                                      18

             Signatures                                             18
             Certification                                          19



































================================================================================
                                        F-3
Hybrid Fuels, Inc.
(A Development Stage Company)
Consolidated Balance Sheets



--------------------------------------------------------------------------------
                                                        Sept 30,      June 30,
                                                           2003         2003
                                                       (Unaudited)   (Audited)
                                                            $            $
--------------------------------------------------------------------------------
ASSETS
Current Assets
Cash                                                          896          1,247
-------------------------------------------------------------------------------
Total Assets                                                  896         1,247
--------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable                                           34,929        35,695
Accrued liabilities                                         2,500        12,500
Note payable (Note 3)                                      37,106        37,106
Shareholder loan payable (Note 4(a))                      203,561       201,305
Amounts owing to a Director (Note 4(b))                   308,701       290,701
--------------------------------------------------------------------------------
                                                          586,797       577,307
--------------------------------------------------------------------------------
Redeemable & Restricted Common Shares (Note 6(c))         223,000       223,000
--------------------------------------------------------------------------------
Contingencies & Commitments (Notes 1 & 6)
Stockholders' Deficit
Common Stock (Note 7): $0.001 par value; 50,000,000
shares authorized 22,005,600 and 21,950,600 shares are
issued and outstanding respectively                        22,005        21,950
Additional Paid-in Capital                                428,080       414,385
Donated Capital-Imputed Interest (Notes 4(a) and (b))   262,678       243,602
Deficit Accumulated During the Development Stage       (1,521,664)   (1,478,997)
--------------------------------------------------------------------------------
Total Stockholders' Deficit                              (808,901)     (799,060)
Total Liabilities and Stockholders' Deficit                   896         1,247
--------------------------------------------------------------------------------


Nature of Operations and Continuance of Business (Note 1)
Other Contingencies  (Note 6)

(See Accompanying Notes to the Consolidated Financial Statements)
















================================================================================
                                        F-4
Hybrid Fuels, Inc.
(A Development Stage Company
Consolidated Statements of Operations
(unaudited)


                           Accumulated from
                           February 26, 1960    Three Months     Three Months
                           (Date of Inception)    Ended            Ended
                           to September 30,     September 30,    September 30,
                                 2003              2003             2002
                                  $                 $                $
--------------------------------------------------------------------------------
Revenue                           -                 -                -
--------------------------------------------------------------------------------
Expenses
Consulting fees                     98,270             3,750         -
Deposits & Advances written-off    255,512          -                -
Disputed compensation (Note 6(b))  243,463          -                -
Executive compensation (Note 4(b)) 306,000            18,000          18,000
Filing and regulatory fees          18,704                60             263
General and administration          63,358                18              41
Imputed interest (Notes 4(a) & (b))262,678            19,076          10,846
Interest                            11,038             1,098             770
Investor relations                  16,698          -                -
Professional fees                  180,677               534           1,597
Rent and telephone                  43,273               131             127
Research and development             8,000          -                -
Travel and promotion                13,993          -                      5
--------------------------------------------------------------------------------
                                 1,521,664            42,667          31,649
--------------------------------------------------------------------------------
Net Loss                        (1,521,664)          (42,667)        (31,649)
--------------------------------------------------------------------------------
Net Loss Per Share                                      (.01)           (.01)
--------------------------------------------------------------------------------
Weighted Average Shares Outstanding               21,978,100      21,320,600







(See Accompanying Notes to the Consolidated Financial Statements)



















================================================================================
                                        F-5
Hybrid Fuels, Inc.
(A Development Stage Company)
Consolidated Statements of Cash Flows
(unaudited)

                                                 Three Months      Three Months
                                                    Ended             Ended
                                                 September 30,     September 30,
                                                    2003              2002
                                                      $                 $
--------------------------------------------------------------------------------
Cash Flows To Operating Activities
Net loss                                              (42,667)          (31,649)
--------------------------------------------------------------------------------
Accrued director remuneration                          18,000            18,000
Common shares issued for services                       3,750           -
Imputed interest                                       19,076            10,846
Change in operating assets and liabilities            -                 -
Accounts payable and accrued liabilities                 (766)             (146)
--------------------------------------------------------------------------------
Net Cash Used In Operating Activities                  (2,607)           (2,949)
--------------------------------------------------------------------------------
Cash Flows From Financing Activities
Common stock subscribed for                           -                   3,783
Advances from a Director                              -                      19
Proceeds from shareholder loans                         2,256              (630)
--------------------------------------------------------------------------------
Net Cash Provided By Financing Activities               2,256             3,172
--------------------------------------------------------------------------------
Net Increase (Decrease) in Cash                          (351)              223
Cash - Beginning of Period                              1,247             1,796
Cash - End of Period                                      896             2,019
--------------------------------------------------------------------------------
Non-Cash Financing Activities
Common shares issued for services                       3,750
Common shares issued to settle debt                    10,000











(See Accompanying Notes to the Consolidated Financial Statements)
















================================================================================
                                        F-6
Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements


1.	Nature of Operations and Continuance of Business The Company was
originally incorporated in the State of Florida on February 16, 1960. After a
number of name changes the Company changed its name to Polo Equities, Inc. on
June 3, 1993. Prior to May, 1998 the Company had no business operations. In May
1998, the Company caused a Nevada corporation to be formed under the name Polo
Equities, Inc., (Polo) (a Nevada corporation), with authorized capital of
50,000,000 common shares of $.001 par value. 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, which changed its domicile to Nevada. On May 28, 1998,
the Company acquired, by issuing 12,000,000 shares, Hybrid Fuels, USA, Inc. 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.
The Company operates through these two wholly-owned subsidiaries. On May 29,
1998 the Company changed its name to Hybrid Fuels, Inc., herein "the Company".
On June 10, 1998 the Company began trading on the OTC Bulletin Board under the
symbol "HRID" and in December, 1999 was moved to the "Pink Sheets". Pursuant to
the above acquisition, the Company acquired a number of proprietary technologies
with the primary objective of the business being to build small scale farm-based
ethanol facilities which involves a number of proprietary technologies
exclusively owned by the Company. Other proprietary technology involves the use
of a modified gasifier furnace, which burns manure and bedding straw. This
technology eliminates soil and ground-water contamination and produces most of
the energy required for ethanol extraction by supplying heat for fermentation
and vaporization.  Excess heat from the furnace can be used in such ancillary
services as a greenhouse, if desired. Another exclusive proprietary technology
is a vegetable based formula which allows diesel and ethanol to emulsify. This
hybrid fuel reduces particulate emissions without reduction in power when used
in an unaltered diesel engine. The Company is in the development stage. In a
development stage company, management devotes most of its activities to
investigating business opportunities and further advancing its technologies.
Because of a serious working capital deficiency and significant operating losses
from inception, there is substantial doubt about the ability of the Company to
continue as a going concern. The Company will need to rely on the forbearance of
some creditors and related parties have agreed to continue to fund working
capital as needed. The Company has entered into discussions with third parties
to directly finance a facility in which the Company will then commence with its
business plan.

2.	Summary of Significant Accounting Policies
    (a)	Consolidated Financial Statements
        These consolidated financial statements represent the consolidation of
        the Company and its wholly owned subsidiary, Hybrid Fuels (Canada) Inc.

    (b)	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.



================================================================================
                                        F-7
Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements

2.	Summary of Significant Accounting Policies (continued)
    (c) Use of Estimates
        The preparation of financial statements in conformity with accounting
        principles generally accepted in the United States 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 periods. Actual results
        could differ from those estimates.

    (d)	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" (SFAS 128). SFAS 128 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
        antidilutive.

    (e) Foreign Currency Translation
        The Company's functional and reporting currency is the United States
        dollar. Foreign currency transactions are primarily undertaken in
        Canadian dollars and are translated into United States dollars using
        exchange rates at the date of the transaction. Monetary assets and
        liabilities denominated in foreign currencies are re-measured at each
        balance sheet date at the exchange rate prevailing at the balance sheet
        date. Foreign currency exchange gains and losses are charged to
        operations. The Company has not, to the date of these financials
        statements, entered into derivative instruments to offset the impact of
        foreign currency fluctuations.

    (f) 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 September 30, 2003, the Company has no items that represent a
comprehensive loss and, therefore, has not included a schedule of comprehensive
loss in the financial statements.

    (g) Financial Instruments
The fair values of cash and equivalents, accounts payable and accrued
liabilities, note payable, and amounts due to related parties approximate their
carrying values due to the immediate or short-term maturity of these financial
instruments.

    (h) Income Taxes
Potential benefits of income tax losses are not recognized in the accounts until
realization is more likely than not. The Company has adopted SFAS No. 109 as of
its inception. Pursuant to SFAS No. 109 the Company is required to compute tax
asset benefits for net operating losses carried forward. Potential benefit of
net operating losses have not been recognized in these financial statements
because the Company cannot be assured it is more likely than not it will utilize
the net operating losses carried forward in future years.

================================================================================
                                        F-8
    (i)	Stock-Based Compensation
The Company has elected to apply the intrinsic value principles of Accounting
Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees"
("APB 25"), and related interpretations in accounting for its stock options
granted to employees and directors. Under APB 25, compensation expense is only
recorded to the extent that the exercise price is less than the market value of
the underlying stock on the measurement date, which is usually the date of
grant.

Stock-based compensation for employees is recognized on an accelerated basis
over the vesting period of the individual options. Stock options granted to
non-employees are accounted for under SFAS No. 123 "Accounting for Stock-Based
Compensation and are recognized as compensation expense based on the fair
market value of the stock award or fair market value of the goods and services
received, whichever is more reliably measurable.

    (j) Interim Financial Statements

    	These 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 and cash flows for the periods shown.
        The results of operations for such periods are not necessarily
        indicative of the results expected for a full year or for any future
        period.

    (k) Recent Accounting Pronouncements
        In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain
        Financial Instruments with Characteristics of both Liabilities and
        Equity". SFAS No. 150 establishes standards for how an issuer classifies
        and measures certain financial instruments with characteristics of both
        liabilities and equity. It requires that an issuer classify a financial
        instrument that is within its scope as a liability (or an asset in some
        circumstances). The requirements of SFAS No. 150 apply to issuers'
        classification and measurement of freestanding financial instruments,
        including those that comprise more than one option or forward contract.
        SFAS No. 150 does not apply to features that are embedded in a financial
        instrument that is not a derivative in its entirety. SFAS No. 150 is
        effective for financial instruments entered into or modified after May
        31, 2003, and otherwise is effective at the beginning of the first
        interim period beginning after June 15, 2003, except for mandatorily
        redeemable financial instruments of non-public entities. It is to be
        implemented by reporting the cumulative effect of a change in an
        accounting principle for financial instruments created before the
        issuance date of SFAS No. 150 and still existing at the beginning of the
        interim period of adoption. Restatement is not permitted. The adoption
        of this standard is not expected to have a material effect on the
        Company's results of operations or financial position. In December 2002,
        the FASB issued SFAS No. 148, "Accounting for Stock-Based Compensation -
        Transition and Disclosure", which amends SFAS No. 123 to provide
        alternative methods of transition for a voluntary change to the fair
        value based method of accounting for stock-based employee compensation.
        In addition, SFAS No. 148 expands the disclosure requirements of SFAS
        No. 123 to require more prominent disclosures in both annual and interim
        financial statements about the method of accounting for stock-based
        employee compensation and the effect of the method used on reported
        results. The transition provisions of SFAS No. 148 are effective for
        fiscal years ended after December 15, 2002. The disclosure provisions of
        SFAS No. 148 are effective for financial statements for interim periods
        beginning after December 15, 2002. The transition provisions do not
        currently have an impact on the Company's financial position and results
        of operations as the Company currently has no stock-based employee
        compensation. In June 2002, FASB issued SFAS No. 146, "Accounting for
================================================================================
                                        F-9
        (k) Recent Accounting Pronouncements (con't)
        Costs Associated with Exit or Disposal Activities". The provisions of
        this Statement are effective for exit or disposal activities that are
        initiated after December 31, 2002, with early application encouraged.
        This Statement addresses financial accounting and reporting for costs
        associated with exit or disposal activities and nullifies Emerging
        Issues Task Force (EITF) Issue No. 94-3, "Liability Recognition for
        Certain Employee Termination Benefits and Other Costs to Exit an
        Activity (including Certain Costs Incurred in a Restructuring)". This
        Statement requires that a liability for a cost associated with an exit
        or disposal activity be recognized when the liability is incurred. The
        adoption of this standard did not have a material effect on the
        Company's results of operations or financial position. FASB has also
        issued SFAS No. 147 and 149 but they will not have any relationship to
        the operations of the Company therefore a description of each and their
        respective impact on the Company's operations have not been disclosed.

3.      Note Payable
        On September 15, 2000, the Company issued a note for $50,000 CND
        ($33,638 US) payable on or before September 15, 2001 plus 8% interest.
        The Company extended repayment of the note pending completion of a
        financing arrangement. Interest expense of $833 has been accrued for the
        period ended September 30, 2003. The note payable was $37,106 converted
        to US dollars at year-end. The Company incurred a foreign currency
        conversion loss of $3,468 that was charged to operations. Accrued
        interest from September 15, 2000 of $8,822 is included in accounts
        payable as of September 30, 2003.

4.      Related Party Transactions/Balances
    (a)	The controlling shareholder is owed $199,371 for payment of rent, office
        expenses and professional fees on behalf of the Company. Amounts owing
        are unsecured, non-interest bearing, with no specific terms of
        repayment. For the period ended September 30, 2003 this major
        shareholder advanced a further $2,256 to the Company. Imputed interest
        of $7,500 (2002 - $4,928), calculated at a rate of 15% per annum, was
        charged to operations and treated as donated cap    (b)The President who
        is also a Director of the Company has paid office and related expenses
        from personal funds in the amount of $16,486 of which $13,785 has been
        reimbursed with cash. Effective July 1, 1999 the President is entitled
        to a deferred salary of US$6,000 per month and was owed a total of
        $308,701 at September 30, 2003. These amounts are unsecured,
        non-interest bearing and due on demand. Imputed interest of $11,596
        (2002 - $5,918), calculated at a rate of 15% per annum, was charged to
        operations and treated as donated capital.

5.     Common Shares
       On September 10, 2003, 40,000 shares were issued to settle a debt of
       $10,000, and 7,500 shares were issued for services rendered to the
       company. On September 23, 2003 a further 7,500 shares were issued for
       services rendered to the company.

6.     Commitments and Contingencies
       Although the Company is not involved in any legal proceedings, several
       issues may eventually lead to the Company instituting legal action as
       follows:

    (a)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
================================================================================
                                        F-10
6.     Commitments and Contingencies  (con't)
       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 are delivered to a
       broker for possible resale the broker phones 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 the former
       administration has failed to provide addresses despite a number of
       requests.

    (b)Unauthorized and/or unsupported payments in the amount of $243,463 were
       made from Company funds by past officers of the Company during the period
       May, 1998 to June, 1999. The Company has requested a full accounting from
       the past president. All amounts that were unauthorized by the board of
       directors or amounts that are not properly documented with invoices and
       receipts have been accounted for as disputed executive compensation. At
       such time as Company resources permit, the Company will seek legal advice
       to determine whether or not it is possible to recover all such disputed
       and unauthorized amounts from the previous administration.

    (c)	Between October 1998 and June 1999, the previous administration 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. The current administration has 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 and does
        not have the funds to repay these 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. These shares are issued but not considered
        outstanding. The remaining 11 subscribers, who paid $65,000 for 128,367
        shares, have not responded to the offer. These subscriptions are
        recorded as redeemable and restricted common shares until rescission
        rights have been revoked.

    (d) A group of the Company's independent shareholders are financing the
        construction of the first fully operational facility at Oyama, B.C.,
        Canada, to be used for training and demonstration of the Company's
        technology. This group has made a verbal agreement whereby Hybrid Fuels
        (Canada) Inc., will lease or purchase this facility upon completion. The
        terms under which this facility will be operated are to be finalized
        when construction is complete and all of the construction and start-up
        costs are known.







================================================================================
Page-11-

Item 2.  Management's Discussion and Analysis or Plan of Operation

PLAN  OF OPERATION

This Form 10-QSB contains forward-looking statements. The words "anticipate",
"believe", "expect", "plan", "intend", "estimate", "project", "could", "may",
"foresee", and similar expressions identify forward-looking statements that
involve risks and uncertainties. You 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 year ended June 30, 2003. Actual
results could differ materially from the results discussed in the
forward-looking statements. 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.

The Company is a developmental stage company and has had no income since the
acquisition of the hybrid fuels technology in June 1998, nor is it likely to
have any significant cash flow until after the end of its current fiscal period
ending June 30, 2004. If the Company is unable to obtain funds from external
sources, it is probable that it will be unable to continue to operate in the
long term.

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

After that facility was closed in 1996, further research, development and
construction enabled us to modify construction materials and layout to improve
the buildings and equipment and refine the process, which is now ready for
market.

The Company's intended business is to sell and build farm scale facilities that
produce ethanol integrated with a cattle finishing operation. In these
facilities, grain, corn or other feedstock is fermented and then distilled to
make the ethanol. Left over from the ethanol production process is a high
protein mash, called "distillers grain" and a liquid, called "stillage water".
These contain nutrients and are therefore used as feed and water for livestock.
By using the distillers grain and stillage water on site the animals get the
benefit of the nutrients in these byproducts. In addition, the facilities do not
incur the costs of drying the distillers grain and transporting it as would be
necessary if it was to be used at another site. A further benefit is that no
costs are incurred to dispose of the stillage water. Rather than it being
something that is costly to be disposed of, it becomes a valuable feed product.

The manure and used bedding straw are cleaned up frequently, thus removing the
media in which disease would otherwise grow. They are burned in a gasifier and
the heat produced is used in the fermentation and distillation processes. From
discussions with the gasifier manufacturer, management believes that sufficient
heat will be leftover to operate a greenhouse, if the operator so desires.

The ethanol is intended to be mixed with a proprietary emulsifier and diesel
fuel. When this emulsion was tested at The British Columbia Institute of
Technology in June, 1996, in an unaltered diesel engine, it reduced the
particulate (black smoke) emissions by over 62% and the NOx emissions by over
22%, without any loss of power.

================================================================================
Page-12-

For a more detailed description of the entire process, plus sources of
information and references, the reader is referred to the Company's Form 10-KSB
for the year ended June 30, 2003, as amended and filed with the SEC.

Although there are no operating facilities at the moment, the Company is
expecting to have the first one  operating in Oyama B.C., in early 2004 as
described below.

The Company intends to sell these facilities (except the column and spinner
which we intend to lease) to farm operators, preferably those who grow or have
access to sufficient grain to supply the facility. Management believes this
would be about 40,000 bushels of barley or other suitable grain for a facility
which would feed 200 head of cattle on a continually rotating basis.

RESULTS OF OPERATIONS

The loss for the present quarter is $42,667 compared to $31,649 for the
comparable quarter last year. Although the amount of the loss is similar, during
the quarter this year, the company experienced lower professional fees and
higher consulting fees compared to the same quarter last year. We anticipate
professional and consulting fees to remain about the same in the upcoming year.
The loss for this quarter includes amounts of $18,000, which is deferred salary
for the President, and $19,076 imputed interest, which do not represent a cash
outlay. These non-cash items total $37,076. Working capital was obtained from
loans from a major shareholder and some services were paid for by the issuance
of restricted stock. At the end of the quarter, the Company had cash of $896
down from $1,247 at the end of the previous quarter. After the end of the
quarter, a shareholder pledged to advance sufficient cash to pay operating costs
for the next six months. Meanwhile, the Company continues to keep its operating
expenses to a very minimum. In the absence of operating activities, the
Company's general and administrative expenses for the next 12 months that
require a cash outlay are expected to be less than $100 per month, exclusive of
executive compensation, which is deferred, and professional fees, which have
been paid by related parties in the past.

PLAN OF OPERATION

Background

We are a development stage company that has not yet proved the feasibility of
its planned principal operations.  In their opinion on our June 30, 2003
financial statements, 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.  To date we do
not have any operations that generate revenue and have been unable to raise
money to begin operations. Until such time as we prove the feasibility of our
planned principal operations, we are likely to continue to experience a cash
shortage. Because we are a developmental stage company, we are unlikely to be
able to borrow money from banks and other traditional financial institutions.
We do not anticipate making any commitments to borrow money within the next 12
months, unless we can secure construction loans to build operating facilities.
The lack of long term, adequate financing continues to be of great concern to
management.

We will require additional capital soon in order to continue as a going concern
in the long term.  Until we have arranged financing, no operating activities are
planned. Our ability to continue to operate in the future depends on us being
able to raise money to commence operations, and our efforts, therefore, have
been concentrated on raising money to build the first facility and commence
operations. A group of the Company's independent shareholders are financing the
construction of the first fully operational facility at Oyama, B.C., Canada, to
be used for training and demonstration of the Company's technology. This group
has made a verbal agreement whereby Hybrid Fuels (Canada) Inc., will lease or
================================================================================
Page-13

Background (con't)
purchase this facility upon completion. The terms under which this facility will
be operated are to be finalized when construction is complete and all of the
construction and start-up costs are known. We anticipate this first facility
will be operational early in 2004.

Management recognizes that to generate long-term cash flow, we need to develop
operating activities. Once the first facility is operating, we plan to use it to
demonstrate to potential operators, lenders and investors that the technology
works as described. Prospective operators and those who will approve the
financing for the construction of subsequent facilities want to see a profitable
facility in operation before they commit themselves.

In the meantime we are seeking a private placement to finance the commencement
of operating activities. We do not have any commitments for financing at this
time.

Although we do not have significant cash reserves, related parties have
indicated a willingness for the time being to continue to pay operating expenses
and advance funds to pay legal and accounting fees. The Company therefore
believes that it can continue as a going concern in the near term. These related
parties are not obligated to pay Company operating costs, and therefore, no
assurances can be given that they will continue to do so. If these related
parties cease to advance money to pay these operating costs, the Company may
have to cease operations and liquidate.

Strategy to Raise Capital

We are aware of a class of investors who will invest money in companies whose
stocks are traded on the OTC Bulletin Board. Since our stock is now trading on
the OTC Bulletin Board, we are in the process of contacting prospective
investors to raise $500,000 to $1,000,000 in capital through the sale of shares.
This planned offering and sale of our common stock will not be registered under
the Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirement.  This disclosure is not an offer of securities or a solicitation of
an offer to buy securities.  Placements will be made only to investors with
preexisting contacts with Hybrid Fuels and its authorized representatives. At
this time we do not have any specific investors identified who have committed to
invest funds in the Company.

Plan of Operation Assuming Adequate Capital Raised

The discussion in this section assumes that we will succeed in raising $500,000
to $1,000,000 that will be used to build the second facility and develop
operating activities. The major goal of placing the first facility in service is
to demonstrate the economic feasibility of the system. Once this first facility
is operating, we expect to use it as a demonstration and training facility and
to earn revenue from its operation. Assuming that it will be necessary to pay
market price for grain, bedding and other supplies and that we will receive no
more than market price for the finished animals, our projections indicate that
the facility should generate sufficient revenue to pay all operating costs, plus
a small surplus. The financial institutions that have expressed interest in
financing subsequent facilities want to see this first facility generate
sufficient cash flow to pay all operating costs and debt service. We anticipate
that the facility will show sufficient cash flow to make it possible for us to
get approval for financing subsequent facilities.

After the end of the quarter, the foundation and floor for first facility were
completed at Oyama, on approximately six acres of farmland. This location was
chosen because it provides our subsidiary, Hybrid Fuels (Canada) Inc., with the
necessary site control and supervisory ability which is essential to the
completion of the first facility.
================================================================================
Page-14

An operating facility includes the barn and a second building housing the
ethanol extraction equipment, plus the bio-furnace or gasifier, "Greener
Pastures" grass growing system, and the right to use the proprietary information
and technology. The cost of building a facility is anticipated to be
approximately $350,000. Approximately $220,000 of this cost is for foundations
and flooring, buildings, the gasifier, the ethanol making equipment, tanks and
machinery. Soft costs, for such items as permits, engineering and other
professional fees, survey and layout, site preparation, delivery of buildings
and materials, rentals, small tools and miscellaneous, are estimated at $60,000.
We estimate we will spend approximately $70,000 for construction labor and
supervision.

Each facility is expected to accommodate 200 head of cattle.  As we near the end
of testing the first facility, we plan to begin the finishing operation for the
cattle with an initial group of 20 to 25 head.  The finishing operation is
designed to function on a staggered basis, so that every two weeks (initially)
we will bring in an additional 20 to 25 cattle.  We will sell the cattle on the
same staggered basis as they complete the finishing process.  As we gain
experience with the facility, we intend to bring cattle in 40 to 50 at a time on
three to five week intervals to take maximum advantage of the size of the trucks
used to transport the cattle.

The cattle will begin the finishing operation in quieting pens where they spend
approximately two weeks being transitioned from their prior diet to the wet
distillers grains diet.  After completing the diet transition, the cattle are
moved into the barn, where, on average, they will spend approximately 100 days
being fed the finishing diet.  At the end of the finishing operation, our plans
for this demonstration facility call for the cattle to be sold at auction.  As
one group of cattle is sold, another takes its place, as both the finishing
operation and our staggered acquisition scheme are scheduled to take
approximately three to four months, depending on how long the finishing takes.
As a result of using this staggered acquisition scheme, we will not run the
facility at full capacity until approximately four months have passed from the
facility becoming operational.  As a result the cattle we begin selling during
the fourth month, which will generate our initial revenues, will bear a
disproportionate amount of fixed costs compared to cattle sold beginning in the
eighth month.  We believe, however, that at the end of the fourth month, when we
sell the first group of finished cattle, we will be able to prepare pro forma
information that will demonstrate the financial fundamentals of the facility for
purposes of demonstrating cash flows to prospective financiers and prospective
purchasers of future facilities.

We plan to add, on average, between 400 and 500 pounds per head during the
finishing operation.  The weight per head when we acquire the cattle will vary,
principally due to the time of year when the cattle are acquired (most calves
are born in the spring and are ready to begin being sold as feeder cattle seven
months to a year later). Generally speaking, the older they are, the more they
weigh. One of our fundamental assumptions is that the facility will have the
potential to break even if we sell finished cattle at prices per pound that are
less than the prices per pound at which we purchase them.  Generally in the
cattle industry, feeder cattle sell at a higher price per pound than finished
cattle.  The increase in weight during the finishing operation provides the
potential for generating a profit or at least breaking even when selling
finished cattle at a lower price per pound.  For example, assume we purchase a
600 pound animal for $0.90 per pound, or $540, that we finish it to 1000 pounds
and sell at $0.85 per pound, or $850.  The $310 difference between our purchase
price and the sale price would have to cover the consumables purchased to
prepare wet distillers grains for the animal and a pro rata share of the
facility's operating costs, including debt service.  At this time we do not have
financial data to support the breakeven pricing spread for the facility.
Developing this relationship between the facility's cost structure and tolerable
price differentials will provide critical information for prospective financiers
and purchasers of future facilities.
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Page-15

We expect that as sale prices move close to or exceed purchase prices, the
facility's cattle finishing operation will make a profit.  Cattle prices are
volatile, however, so there is a distinct risk that sale prices for finished
cattle could be below the pricing threshold, resulting in a loss on cattle
finishing.  The greater the price spread, the more important ethanol sales
become to the overall profitability of the facility.  Farmers with integrated
operations who grow their own consumables could have greater price flexibility
on the cattle finishing operation if their cost of producing the consumables is
less than the market price for consumables.  We do not plan to have an
integrated operation at the first facility, so we will have to pay market prices
for our consumables.

We do not plan to sell the ethanol produced by the first facility during at
least the first two to three months of its operation.  We have discussed with a
local owner of a sawmill and trucking company giving him the ethanol for this
two- to three-month period, with a view toward charging him in the future once
he has determined that he can use the ethanol economically without harm to his
equipment.  Once the facility is at full capacity, we project that the facility
will produce approximately 240 US gallons of ethanol per day, which could be
sold at market prices slightly below the price of the diesel fuel with which it
will be blended.  The price of ethanol will vary, usually in tandem with the
price of diesel.  Assuming a price of $0.70 per gallon for ethanol, monthly
sales of ethanol would be approximately $5,000.

Once we have operated the facility for four months, we believe that the actual
financial results for the finishing operation and ethanol sales will provide us
with a basis to prepare pro forma financial information projecting the economic
feasibility of the facility.  By establishing the economic feasibility of the
facility, we will then be able to implement our business plan, which is based on
identifying third parties who will work with us to construct and operate their
own facilities.  If our assumptions prove wrong or we encounter unforeseen
obstacles, our ability to demonstrate the facility's economic feasibility may be
delayed, or, in the worst case, we may not be able to establish the economic
feasibility of the facility and may have to abandon the business and liquidate
the company.

Plan of Operation Assuming Establishment of Facility Feasibility

The discussion in this section assumes that we will succeed both in raising the
money necessary to place the first facility in service and in demonstrating it's
the economic feasibility.  Once these milestones are achieved, we intend to
enter into contracts with others who will build, own and operate additional
facilities, while we earn revenues from a variety of sources related to the
facilities.  We plan to earn revenue from:

1. operating the demonstration facility;

2. profit on the sale of subsequent facilities;

3. the lease of the column and spinner to each operator;

4. the royalties and service fees that each operator will pay;

5. the purchase of the ethanol mixture from the operator at a percentage of
   wholesale value that will permit us to earn a profit from the sale of the
   ethanol to distributors or end-users;

6. an incentive from premiums from marketing the finished animals.

Once we have a proven demonstration facility, we intend that our subsidiary,
Hybrid Fuels(Canada) Inc., will operate it and earn revenue from the sale of
cattle and ethanol.

================================================================================
Page-16

We intend to license our technology and provide our expertise to third parties
that want to construct facilities.  We expect to earn a profit and recognize
revenue on the sale of each facility. The sale price of each facility is
expected to be sufficient to cover the costs the Company will incur to sell,
plan and supervise the construction of the facility and train the operator. Our
plan is that earnings from the sale of the facilities will be sufficient to
cover all of the operating costs we will incur in qualifying candidates,
training operators, supervising construction and start-up, etc., until royalties
are received.

To date, we have received applications from more than 50 farmers who have
expressed interest in constructing a facility. We are currently developing a
screening process to select suitable candidates, and we expect to assist them in
obtaining financing for facility construction. By the time we have demonstrated
the facility's economic feasibility for purposes of obtaining financing of
subsequent facilities, we expect to have selected four candidates for training
as operators.  After candidates have been selected and have qualified for
financing, we plan to train them and assist in constructing the facility. We
anticipate that it will take approximately four to six months from the time our
first facility demonstrates economic viability to build the second facility and
put it into operations.

We intend to lease to the operators, on a permanent basis, the separation
column, which is used to distill the ethanol, and the spinner, which is used to
separate the mash from the water after the fermentation process. These two items
are integral parts of the facilities, and leasing them is designed to protect
the secrecy of these most vital pieces of the technology. The lease payments
will generate revenue for us and will be payable monthly in amounts yet to be
finalized.

We plan to charge a royalty for the use of the trade secrets and proprietary
information. The royalty, which is expected to be $2500US per month, per
facility, based on the projected benefits of the use of trade secrets to the
operator, will begin when each facility begins operation. Incentives in the form
of reduced royalties may be offered to the first 10 to 20 operators who make
early commitments to purchase facilities.

We also expect to charge each operator service fees to cover the cost of ongoing
training, service, technical support, and quality control. We expect these fees
to be in the $150 to $250 per month range.

We expect to enter into contracts with our operators to act as their marketing
arm for the beef and fuel. We expect this arrangement to generate revenue for us
and give us control over greater quantities of both products than any individual
operator would have. We believe this arrangement will provide us with the
ability to make better deals with, and provide more secure delivery to,
distributors and other purchasers. We believe that operators will appreciate
being relieved of these marketing responsibilities, particularly if beef sales
at premium prices generate greater revenue for them. We expect revenue for
Hybrid to come from the resale of the fuel and from a portion of any premium
that the Company can obtain from the sale of the beef.

Based on the results of the test trials at the Dalum facility, we believe we
will be able to generate premium prices for the beef because it is hormone free
and its high quality and taste. At the Dalum facility, the purchaser of the 123
heifers agreed to pick up subsequent lots at the facility and pay a premium of
$0.10 per pound for all of the beef that could be produced using our process. We
do not have commitments from any buyers to purchase the beef at premium prices
at this time.

We believe that ultimately the best way to obtain the best premium, is to
control the processing, marketing and distribution of the finished beef. To that
end we continue to search for money to purchase the packing facility known as
================================================================================
Page-17

Blue Mountain Packers, near Salmon Arm, B.C. This purchase is not likely to
happen before our next fiscal year end, but it remains part of our long term
plan. No commitment will be made to purchase the packing facility until
sufficient money is committed to pay the purchase price and cover operating
expenses until positive cash flow is achieved.

Our goal is to have third parties operating 15 to 20 these facilities within 18
to 24 months of the first facility demonstrating viability. We expect that many
of these operators will require assistance to obtain financing in order to
construct a facility. We have had preliminary discussions with CIBC, Scotiabank,
Leaseline, Dominion Leasing and a Swiss broker with connections to several
European "ECO" funds, all of whom have expressed interest in providing financing
for facilities. We have been told that our project should qualify for "ECO" fund
financing once we can demonstrate its' economic viability. Once the first
facility is operating the plan is for the Swiss broker to arrange to have the
appropriate representatives of these "ECO" funds inspect the facility and if it
qualifies, to use them as a source of financing for facility construction,
thereby permitting us to expand our operations.
PART II	Other Information

Item 2.   	RECENT SALES OF UNREGISTERED  SECURITIES.

     			Date, title and amount of securities sold

           	     Date                  Title                   Amount
          	     ----                  -----                   ------
       		September 10, 2003      Common Stock               47,500 shares
		September 23, 2003      Common Stock                7,500 shares

On September 10, 2003 the Company issued 40,000 shares in lieu of cash to pay a
debt of $10,000 owed to an independent consultant and a further 7,500 shares for
services rendered to the Company. On September 23, 2003, the Company issued a
further 7,500 shares to pay for services rendered to the Company. The Company
relied upon Section 4(2) of the Securities Act of 1933 to effect the issuance of
the shares. All shares were issued in private transactions at the unsolicited
request of the arms length consultants. There was no public solicitation or
offering, no underwriters were involved, and no commissions or discounts were
paid.

























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Page-18-

Item 6.	Exhibits and Reports on Form 8K
	(a)	Exhibits None
	(b)	Reports on Form 8-K None

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

Dated: November 10, 2003
HYBRID FUELS, INC.
By: /s/ Clay Larson	                       By: /s/ John Morrison
    Director, CEO & President	                   Director & CFO


















































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Page-19-
CERTIFICATIONS

Certification of Principal Executive Officer

I, Clay Larson, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Hybrid Fuels Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

November 10, 2003

/s/ Clay Larson
-----------------------------------------------------
Clay Larson
Chief Executive Officer and
President (Principal Executive Officer)




================================================================================
Page-20-
Certification of Principal Financial Officer

I, John Morrison, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hybrid Fuels Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.


November 10, 2003

/s/ John Morrison
-----------------------------------------------------
 John Morrison
 Chief Financial Officer
 (Principal Financial Officer)




================================================================================
EXHIBIT 32.1

                                  CERTIFICATION

By signing below, each of the undersigned officers hereby certifies pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, that, to his or her knowledge, (i) this report fully complies with
the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934 and (ii) the information contained in this report fairly presents, in all
material respects, the financial condition and results of operations of Hybrid
Fuels Inc.

         Signed this 10th day of November, 2003.

By: /s/ Clay Larson                               By: /s/John Morrison
--------------------------------              ----------------------------------
Clay Larson                                      John Morrison Chief Executive
Officer and President            Chief Financial Officer (Principal Executive
Officer)                    (Principal Financial Officer)

A signed original of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature that
appears in typed form within the electronic version of this written statement
required by Section 906, has been provided to Hybrid Fuels Inc. and will be
retained by Hybrid Fuels Inc. and furnished to the Securities and Exchange
Commission or its staff upon request.







































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