Veridium Recovers Biodiesel Feedstock From Ethanol Facilities; New Technology Increases Ethanol Producer Profits By Upwards of 25% With No Additional Expense
NEW YORK--(BUSINESS WIRE)--Feb. 1, 2006--
Veridium Corporation (OTC Bulletin Board: VRDM) today announced its execution of a joint venture agreement with Mean Green BioFuels Corporation ("Mean Green") pursuant to which Veridium was granted the exclusive worldwide rights to Mean Green's patent-pending Corn Oil Extraction System(TM).
The proprietary new technology extracts high grade corn oil from ethanol by-products. Veridium intends to provide ethanol producers with turn-key Corn Oil Extraction Systems(TM) for no up-front cost in return for long-term corn oil purchase agreements based on a fixed discount to prevailing market prices.
Currently, the majority of ethanol production is based on a dry milling technique that utilizes more than 1 billion bushels of corn to produce 3 billion gallons per year of ethanol (Fuel
#1). The dry mill process converts the starch from the kernel of corn into sugar and then the sugar into ethanol. The balance of the corn (non-starch components) then goes through a dewatering and dehydration process where the byproduct is sold as a commercial feed ingredient called distillers dried grain ("DDG"). DDG contains the majority of the corn oil that was present in the kernel. Today, the 1 billion bushels of corn currently used in the dry mill ethanol process contain roughly 300 million gallons of corn oil that is currently sold for about $0.03 per pound as commercial feed. The new Veridium technology presents another option - cost effective conversion into Biodiesel (Fuel
#2).
Veridium's Corn Oil Extraction System(TM) offers the following compelling benefits for ethanol producers:
-- Low Operating Costs - the system requires less than $0.05 per
gallon of corn oil produced;
-- High Recovery Rates - the technology is capable of recovering
up to 75% of the corn oil within the DDG;
-- Increased Revenue - the corn oil extracted with Veridium's
technology is readily amenable to refining into biodiesel fuel
which creates a new revenue stream for participating ethanol
facilities;
-- Reduces Current Operating Costs and Emissions - Veridium's
technology improves the drying efficiency of the DDG which in
turn reduces overall plant operating costs and emissions; and,
-- Low Capital Cost - Veridium's oil extraction methods have a
capital cost of less than 15% of traditional corn oil
extraction methods.
Pictures and video of the new Veridium technology are available online at
www.meangreenbiofuels.com - this system is in use today and efficiently recovers corn oil from concentrated thin stillage.
Installed for No Up Front Cost
Veridium will finance and install its Corn Oil Extraction System(TM) into client ethanol facilities on a turn-key basis for no up front cost. Veridium will customize the design of its Corn Oil Extraction System(TM) to meet the desired corn oil recovery objectives of participating facilities. Veridium will train plant operators in its use, and then purchase the extracted corn oil from participating facilities and resell the oil on an exclusive basis to Mean Green for conversion into biodiesel. The combined impact of the new sales and efficiency improvements to a participating ethanol facility is expected to be upwards of a 25% increase in profitability with no additional expense.
David Winsness, president and chief operating officer of Veridium's industrial design group, said that "this technology is an exciting and important advance that is designed to plug right into most ethanol producers' existing infrastructure. We see these extraction systems as great example of how we can and should be using our natural resources better, and how we can be more profitable for it."
"In addition to providing Veridium with another high-margin annuity based on another of its proprietary technologies, these extraction systems will generate additional revenue and increase earnings for ethanol producers, and they will enable the increased production of cleaner burning green fuels that can be expected to reduce demand for fossil fuels and reduce the generation of greenhouse gases. We are very excited by this joint venture with Mean Green."
Manufacturing Rights
Veridium has granted right of first refusal manufacturing rights to its Corn Oil Extraction Systems(TM) to Veridium's sister company, INSEQ Corporation (OTC Bulletin Board: INSQ). Veridium expects that the extraction systems will cost about $1 million per system, and that it will need in excess of 30 systems over the next 24 months. INSEQ will manufacture the systems at its Ohio based specialty equipment manufacturing facility.
Veridium, Mean Green and INSEQ are all portfolio companies of GreenShift Corporation (OTC Bulletin Board: GSHF), a publicly traded business development company (BDC) whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.
About Veridium Corporation
Veridium Corporation (OTC Bulletin Board: VRDM) is a publicly traded industrial waste recycling company and holds the rights to more than a dozen proprietary universal processing, water purification, emissions control and waste recycling technologies.
Veridium's business model is based on the engineering and marketing of green innovations and processes that enhance manufacturing efficiencies, improve resource utilization and minimize waste. Veridium's mission is to deliver consumer oriented Natural Solutions(TM) based on an array of green technologies and applied engineering expertise that reduce waste at the source and make it easier for people and businesses to recycle and reuse resources. Veridium plans to focus on the continued acquisition, development and marketing of benchmark green technologies and products that accomplish the following key goals:
-- Reduce the volume of waste generated by residential and
commercial consumers;
-- Increase the convenience and decrease the cost of recycling by
residential and commercial consumers; and,
-- Increase the cost-efficiency of processing certain types of
industrial wastes.
Veridium is about 65% owned by GreenShift Corporation (OTC Bulletin Board: GSHF), a publicly traded business development company (BDC) whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.
Safe Harbor Statement
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Veridium Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Source: Veridium Corporation