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 March 31, 2008

[_] 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 May 15, 2008 was 30,111,733.

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


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................  7

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

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

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

Hybrid Fuels, Inc.
(A Development Stage Company)

March 31, 2008

                                                                                   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


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

                                                                                                   March 31,          June 30,
                                                                                                     2008               2007
                                                                                                      $                  $
                                                                                                 (unaudited)

ASSETS
Current Assets

  Cash                                                                                                  347               3,965
--------------------------------------------------------------------------------------------------------------------------------
Total Current Assets                                                                                    347               3,965

Property and Equipment (Note 4)                                                                     747,972             820,602

Intangible Assets (Note 5)                                                                          421,487             505,784
--------------------------------------------------------------------------------------------------------------------------------
Total Assets                                                                                      1,169,806           1,330,351
================================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

  Accounts payable                                                                                  217,155             137,229
  Accrued liabilities                                                                                34,355              30,316
  Note payable and other advances (Note 6)                                                           51,850              50,048
  Due to related parties (Note 7(a) and (c))                                                        261,607             229,704
  Due to a former director (Note 8)                                                                 326,701             326,701
  Current portion of capital lease obligation (Note 9)                                                7,898               7,349
--------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities                                                                           899,566             781,347

Capital Lease Obligation (Note 9)                                                                     4,788              10,374

Redeemable and Restricted Common Shares (Note 11(a)(ii))                                            222,767             222,767
--------------------------------------------------------------------------------------------------------------------------------
Total Liabilities                                                                                 1,127,121           1,014,488
--------------------------------------------------------------------------------------------------------------------------------

Commitments and Contingencies (Notes 1 and 11)

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 (Note 10)                                                                     1,946              20,000

Donated Capital                                                                                     737,970             656,286

Accumulated Other Comprehensive Loss                                                                   (732)               (582)

Deficit Accumulated During the Development Stage                                                 (3,163,399)         (2,806,741)
--------------------------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity                                                                           42,685             315,863
--------------------------------------------------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity                                                        1,169,806           1,330,351
================================================================================================================================

                          (The accompanying notes are an integral part of these consolidated financial statements)

F-1

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

                                                     Accumulated from
                                                     January 28, 1998                For the                       For the
                                                    (Date of Inception)       Three Months Ended              Nine Months Ended
                                                        to March 31,                March 31,                      March 31,
                                                            2008               2008           2007           2008            2007
                                                              $                  $              $              $               $
Revenue                                                           -               -               -               -               -
------------------------------------------------------------------------------------------------------------------------------------

Expenses

  Deposits and advances written-off                         305,512               -               -               -               -
  Depreciation and amortization                             267,187          80,823          20,998         158,845          24,965
  Foreign exchange loss (gain)                               35,257          (9,691)           (570)          4,948          (3,867)
  General and administrative (Note 7(b))                  1,931,049          34,707          28,752         133,682         130,310
  Imputed interest (Notes 7(a) and 8)                       617,969          19,728          19,728          59,183          59,183
  Research and development                                   16,925               -               -               -               -
------------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses                                  3,173,899         125,567          68,908         356,658         210,591
------------------------------------------------------------------------------------------------------------------------------------
Operating Loss                                           (3,173,899)       (125,567)        (68,908)       (356,658)       (210,591)

Other Income

  Gain on settlement of debt                                 10,500               -               -               -               -
------------------------------------------------------------------------------------------------------------------------------------
Net Loss                                                 (3,163,399)       (125,567)        (68,908)       (356,658)       (210,591)

Other Comprehensive Loss

  Foreign currency translation adjustment                      (732)            859               -            (150)              -
------------------------------------------------------------------------------------------------------------------------------------
Comprehensive Loss                                       (3,164,131)       (124,708)        (68,908)       (356,808)       (210,591)
====================================================================================================================================
Net Loss Per Share - Basic and Diluted                                            -               -           (0.01)          (0.01)
====================================================================================================================================
Weighted Average Shares Outstanding                                      30,112,000      30,053,000      30,098,000      27,731,000
====================================================================================================================================

                       (The accompanying notes are an integral part of these consolidated financial statements)

F-2

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

                                                                                                      For the Nine Months
                                                                                                             Ended
                                                                                                           March 31,
                                                                                                    2008               2007
                                                                                                      $                  $

  Operating Activities
    Net loss                                                                                      (356,658)          (210,591)

    Adjustments to reconcile net loss to net cash used in operating activities:
      Depreciation and amortization                                                                158,845             24,965
      Donated services                                                                              22,500             22,500
      Imputed interest                                                                              59,183             59,183
      Stock-based compensation                                                                           -             25,500

    Changes in operating assets and liabilities:
      Accounts payable and accrued liabilities                                                      83,965             61,492
      Due to related parties                                                                        30,189             13,584
------------------------------------------------------------------------------------------------------------------------------
  Net Cash Used In Operating Activities                                                             (1,976)            (3,367)
------------------------------------------------------------------------------------------------------------------------------
  Investing Activities

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

    Advances from related parties                                                                    1,713              3,366
    Repayment of capital lease obligation                                                           (5,037)                 -
    Common stock subscribed                                                                          1,946                  -
------------------------------------------------------------------------------------------------------------------------------
  Net Cash Provided By (Used In) Financing Activities                                               (1,378)             3,366
------------------------------------------------------------------------------------------------------------------------------
  Effect of Exchange Rate on Changes on Cash                                                           920             (1,462)
------------------------------------------------------------------------------------------------------------------------------
  Decrease in Cash                                                                                  (3,618)            (1,463)

  Cash - Beginning of Period                                                                         3,965              3,533
------------------------------------------------------------------------------------------------------------------------------
  Cash - End of Period                                                                                 347              2,070
==============================================================================================================================
  Non-cash Investing and Financing Activities

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

    Interest paid                                                                                      590                  -
    Income taxes paid                                                                                    -                  -
==============================================================================================================================

                              (The accompanying notes are an integral part of these consolidated financial statements)

F-3

Hybrid Fuels, Inc.
(A Development Stage Company)

Notes to the Consolidated Financial Statements March 31, 2008
(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 March 31, 2008, the Company had a working capital deficit of $899,219 and has accumulated losses of $3,163,399 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.

F-4

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements March 31, 2008
(expressed in U.S. dollars)
(unaudited)

2. Summary of Significant Accounting Policies (continued)

(b) Interim Financial Statements

The interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Securities and Exchange Commission ("SEC") Form 10-QSB. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended June 30, 2007.

The consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company's consolidated financial position at March 31, 2008 and June 30, 2007, and the consolidated results of its operations and consolidated cash flows for the three and nine months ended March 31, 2008 and 2007. The results of operations for the nine months ended March 31, 2008 are not necessarily indicative of the results to be expected for future quarters or the full year.

(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) Earnings (Loss) per Share

The Company computes earnings (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 earnings (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.

F-5

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements March 31, 2008
(expressed in U.S. dollars)
(unaudited)

2. Summary of Significant Accounting Policies (continued)

(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 March 31, 2008 and 2007, the Company's only component of comprehensive loss was foreign currency translation adjustments.

(h) Financial Instruments

The fair values of 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

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements March 31, 2008
(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) Recent Accounting Pronouncements

In March 2008, the Financial Accounting Standards Board ("FASB") issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities - an amendment to FASB Statement No. 133". SFAS No. 161 is intended to improve financial standards for derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity's financial position, financial performance, and cash flows. Entities are required to provide enhanced disclosures about: (a) how and why an entity uses derivative instruments; (b) how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations; and (c) how derivative instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. It is effective for financial statements issued for fiscal years beginning after November 15, 2008, with early adoption encouraged. The Company is currently evaluating the impact of SFAS No. 161 on its financial statements, and the adoption of this statement is not expected to have a material effect on the Company's financial statements.

In December 2007, the FASB issued SFAS No. 141 (revised 2007), "Business Combinations". This statement replaces SFAS No. 141 and defines the acquirer in a business combination as the entity that obtains control of one or more businesses in a business combination and establishes the acquisition date as the date that the acquirer achieves control. SFAS No. 141 (revised 2007) requires an acquirer to recognize the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. SFAS 141 (revised 2007) also requires the acquirer to recognize contingent consideration at the acquisition date, measured at its fair value at that date. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. The adoption of this statement is not expected to have a material effect on the Company's financial statements.

In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements Liabilities -an Amendment of ARB No. 51". This statement amends ARB 51 to establish accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. The adoption of this statement is not expected to have a material effect on the Company's financial statements.

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 financial statements.

F-7

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements March 31, 2008
(expressed in U.S. dollars)
(unaudited)

2. Summary of Significant Accounting Policies (continued)

(o) Recent Accounting Pronouncements (continued)

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 financial statements.

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 financial statements.

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

                                                                   March 31,          June 30,
                                                                     2008              2007
                                                 Accumulated     Net Carrying      Net Carrying
                                  Cost          Amortization         Value             Value
                                   $                  $                $                 $

Buildings                       765,160            99,366           665,794           723,652
Equipment                        86,459            21,721            64,738            77,812
Computer equipment                1,184               266               918                 -
Tractor                          22,030             5,508            16,522            19,138
---------------------------------------------------------------------------------------------
                                874,833           126,861           747,972           820,602
=============================================================================================

The tractor is under capital lease.

F-8

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements March 31, 2008
(expressed in U.S. dollars)
(unaudited)

5. Intangible Assets

                                                                    March 31,         June 30,
                                                                      2008              2007
                                                Accumulated       Net Carrying      Net Carrying
                                  Cost         Amortization          Value             Value
                                   $                $                  $                 $
Intellectual property rights    561,982           140,495           421,487           505,784
=============================================================================================

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

$

2008 28,103 2009 112,400 2010 112,400 2011 112,400 2012 56,184 421,487

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 $48,915 after translation into U.S. dollars as at March 31, 2008 (June 30, 2007 - $47,215).

(b) As at March 31, 2008, cash advances totalling $2,935 (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 $210,522 (June 30, 2007 - $200,677) for payment of rent, office expenses and professional fees on behalf of the Company. Imputed interest of $22,429 (2007 - $22,429), 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 nine month period ended March 31, 2008, the Company recognized a total of $22,500 (2007 - $22,500) for donated services provided by the President of the Company.

(c) As at March 31, 2008, officers of the Company are owed $51,085 (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 March 31, 2008 (June 30, 2007 - $326,701). This amount is unsecured, non-interest bearing and due on demand. During the nine month period ended March 31, 2008, imputed interest of $36,754 (2007 - $36,754), calculated at a rate of 15% per annum, was charged to operations and treated as donated capital.

F-9

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements March 31, 2008
(expressed in U.S. dollars)
(unaudited)

9. 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 $696 (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 March 31, 2008:

                                                                     $
2008                                                               2,086
2009                                                               8,343
2010                                                               2,781
------------------------------------------------------------------------
Total lease payments                                              13,210
Less: Amounts representing interest at 4.9% per annum               (524)
------------------------------------------------------------------------
Present value of minimum lease payments                           12,686
Current portion of obligation under capital lease                 (7,898)
------------------------------------------------------------------------
Long-term portion of obligation under capital lease                4,788
========================================================================

10. Common Stock

(a) 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.

(b) On January 24, 2008, the Company accepted stock subscriptions for 11,600 shares of common stock at $0.17 per share for proceeds of $1,946 (Cdn$2,000). As at March 31, 2008, the proceeds are recorded as common stock subscribed.

11. 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.

F-10

Hybrid Fuels, Inc.
(A Development Stage Company)
Notes to the Consolidated Financial Statements March 31, 2008
(expressed in U.S. dollars)
(unaudited)

11. Commitments and Contingencies

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 a monthly rent of Cdn$1,000 up to December 31, 2008 when the lease expires.

F-11

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 fiscal year ending June 30, 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 March 31, 2008, the Company has a working capital deficit of $(899,219).

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

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 June 30, 2008 total $400,000. This estimate includes $125,000 for cattle and feed, $200,000 for payables (excluding related

2

party loans and accrued executive salaries), $50,000 for technical support and labor and $25,000 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 fiscal year ending June 30, 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 the current fiscal year ending June 30, 2008 but has been delayed due to the inability of the A4 Bar Cattle Company Ltd. to obtain the necessary financing. There can be no assurance that this project will be initiated and developed as intended.

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:

3

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

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 March 31, 2008

The net loss for the present quarter is $(125,567) compared to $(68,908) for the comparable quarter last year. The difference is largely attributable to depreciation and amortization expense for the present quarter of $80,823 compared to $20,998 for the comparable quarter last year. This expense is related to the Oyama facility that was acquired in December 2006. There was also a foreign-exchange gain in the present quarter of $9,691.

At the end of the quarter, the Company had cash of $347 compared to $3,965 at June 30, 2007. As at March 31, 2008, the Company had a working capital deficit of $(899,219) 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

4

ongoing expenses. If additional funds are raised through the issuance of equity, our shareholders' ownership will be diluted. There can be no assurance 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 March 31, 2008, of ($3,163,399).

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.

5

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 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 Spongiorm 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

6

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

N/A

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: May 19, 2008

7

Exhibit 31.1 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Douglas Dickie, certify that:

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

2. Based on my knowledge, this 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 report;

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

4. The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date:  May 19, 2008


/s/ Douglas Dickie
-----------------------------
Douglas Dickie
Principal Executive Officer


Exhibit 31.2 CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Douglas Dickie, certify that:

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

2. Based on my knowledge, this 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 report;

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

4. The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date:  May 19, 2008


/s/ Douglas Dickie
-----------------------------
Douglas Dickie
Principal Financial Officer


Exhibit 32.1 CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

By signing below, the Principal Executive Officer 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 knowledge, (i) this report on Form 10-QSB 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 19th day of May 2008:

By: /s/ Douglas Dickie
--------------------------------
Douglas Dickie
Principal Executive 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.


Exhibit 32.2 CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

By signing below, the Principal Financial Officer 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 knowledge, (i) this report on Form 10-QSB 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 19th day of May 2008:

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