This quarterly report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties, many of which are beyond our control. Our actual results could differ materially and adversely from those anticipated in such forward-looking statements as a result of certain factors, including those set forth below, elsewhere in this report, and in "Risk Factors" in Item 1A of our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or the Commission, on May 18, 2009.

Important factors that may cause actual results to differ from projections include:

- our lack of operating history;

- our dependence on additional financing;

- our inability to establish production facilities for our KDV products and to generate revenues from sales of fuel;

- our inability to commercialize and develop the technology we have licensed;

- governmental regulation and oversight, including whether or not we are able to obtain the governmental approvals necessary to allow our renewable diesel fuel to be marketed as fuel, a fuel additive, or, alternatively, to be marketed as a new class of fuel or diesel;

- market acceptance of our fuel or diesel;

- unexpected costs and operating deficits, and lower than expected revenues;

- adverse results of any legal proceedings;

- unexpected costs due to the global economic crisis; and

- other specific risks referenced in this quarterly report.

All statements, other than statements of historical facts, included in this quarterly report or otherwise provided by us regarding our strategy, future operations, financial position, estimated revenue or losses, projected costs, prospects and plans and objectives of management are forward-looking statements. When used in this report, the words "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," "plan" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. All forward-looking statements speak only as of their respective dates. We do not undertake any obligation to update any forward-looking statements or other information contained in this report. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements in this report are reasonable, these plans, intentions or expectations may not be achieved.

In this report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to "common shares" refer to the common shares in our capital stock.

As used in this quarterly report, the terms "we", "us", "our", "the company" and "Global" mean Global Energy Inc., and our subsidiaries, unless otherwise indicated.

Overview

Global Energy Inc. is a development stage company that intends to acquire, build and operate facilities in various locations around the world that will use a proprietary technology and process to produce a high quality synthetic diesel fuel utilizing a range of feedstocks such as municipal solid waste or any hydrocarbon-based material such as biomass, wood and paper as well as plastic, rubber and waste oils.

Since June 2007, we have observed efforts in the United States and the European Community to develop facilities for the production of renewable, alternative fuels - primarily biofuels based on corn and other feedstocks. We believe that the United States has focused primarily on ethanol while the European Community has focused primarily on biodiesel. Today, the production of both ethanol and biodiesel has been constrained by price increases of their respective primary feedstocks, corn and rapeseed (Canola).

While we have noted that much attention has been focused on high profile waste streams such as municipal solid waste ("MSW") and biomass waste derived from agriculture and forestry, we believe that there are many other high volume industrial waste streams available to be converted into alternative fuels. We have also determined that unlike traditional biofuels based on corn and other food-based feedstocks, which must be purchased in order to be converted into ethanol or biofuel, the utilization of waste streams as feedstocks to produce alternative fuels also offers the potential of earning additional revenues from garbage tipping fees and through the recycling of waste.

With the above factors in mind, we developed our business plan to take advantage of these potential dual revenue streams through the utilization of a patented technology known as the KDV process. The KDV process has been developed during the past thirty years by a German scientist, Dr. Christian Koch. The KDV process, which Dr. Koch describes as a catalytic de-polymerization, utilizes hydrocarbon-based feedstocks such as biomass, wood and paper as well as plastic, rubber and waste oils, to produce high quality synthetic diesel fuel, similar to diesel fuel available at the pump today.

Our offices are located at 415 Madison Avenue, New York, NY 10017. We also have offices at Moshe Aviv Tower, 7 Jabotinsky St., Ramat Gan 52520, Israel. We maintain a website located at www.global-energy.biz. The contents of our website are not part of this quarterly report.

Recent Developments

On May 8, 2009, Alphakat - Global Energy GmbH, or AKGE, a 50% subsidiary of Global Energy Inc., entered into an agreement for service operation of a KDV 500 unit with Waste 2 Oil GmbH, or W2O, a German company, pursuant to which W2O will provide plant operations and testing services in Hoyerswerda, Germany, to AKGE for a period of three months. W2O is responsible for operating the KDV 500 unit, hiring and paying the qualified workers involved with its operation and paying all taxes by law.

The aim is to produce and sell diesel fuel. All income from the sale of the product will be equally divided between AKGE and W2O. AKGE agreed to pay W2O a monthly fee for covering the cost of operating the KDV 500 unit as follows: (a) a monthly fee of 5,000 Euro, and (b) a fee of 1,000 Euro for each day of actual operation, plus VAT. The agreement will commence five days after W2O notifies AKGE that the system is operational and will have a three month term.

Critical Accounting Policies

A. Going concern considerations

As of June 30, 2009, we had negative working capital of $ 5,430,000 and an accumulated capital shareholders' deficiency of approximately $4,483,000. Our ability to continue to operate as a going concern is dependent on our ability to generate sufficient cash flows to meet our obligations on a timely basis, to obtain additional financing and to ultimately attain profitability. We have no revenues and have incurred losses and an accumulated deficit resulting from our activity as a development stage company and have a negative cash flow from operating activities. In the event we are unable to successfully raise capital and generate revenues, it is unlikely that we will have sufficient cash flows and liquidity to finance our business operations as currently contemplated.

There can be no assurance that additional funds will be available on terms acceptable to us, or at all. These conditions raise substantial doubt about our ability to continue to operate as a going concern. The financial statements contained in this report do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

B. Derivative financial instruments ("derivatives")

We have adopted FAS 133, as amended, which establishes accounting and reporting standards for derivatives, including certain derivatives embedded in other contracts, and for hedging activities. Under FAS 133, all derivatives are recognized on the balance sheet at their fair value. On the date that our company enters into a derivative contract, it designates the derivative, for accounting purposes, as: (1) hedging instrument, or (2) non-hedging instrument. Any changes in fair value are to be reflected as current gains or losses or other comprehensive gains or losses, depending upon whether the derivative is designated as a hedge and what type of hedging relationship exists. Changes in fair value of non-hedging instruments are carried to "financial expenses-net" on a current basis.

Results of Operations - For the Six Month Period Ended June 30, 2009

We initiated our activities during the last six months of 2007, focusing our effort on building an infrastructure that would support our future activities in the alternative energy field. We did not generate any revenues in the six month period ended June 30, 2009 and incurred a loss of $432,000 during that period.

As of June 30, 2009, our cash and cash equivalents were $36,000 compared to $278,000 as of December 31, 2008, respectively, and we had a negative working capital of $5,430,000. We are expecting to continue to expend cash in our activities through payments of salaries, our business development activities, payments for services and other costs. We also plan to continue to finance our operations through a combination of private placements, stock issuances, debt issuances, mutual development agreements with possible milestone license payments and research and development programs. We cannot assure, however, that we will be successful in obtaining the adequate level of financing required for the long-term development and commercialization of our planned products.

Off-Balance Sheet Arrangements

We do not currently have off-balance sheet arrangements.

Plan of Operation

For the 12 months ending June 30, 2010, we estimate expending a total of approximately $600,000 for our proposed business activities. This amount includes the funds required to finance our marketing activities, pay salaries of the employees, office and maintenance costs, among others, in order to execute our plan of operations. The following table provides our current estimate of the break down of costs for the upcoming year of operations.

  Estimated Funding Required During the Next 12 Months



 G&A Salaries         $ 120,000
 Other Operations     $ 480,000
 Total                $ 600,000