Veridium Receives Second Order for Ethanol By-Product Recovery Technology; System Expected to Add More Than $1.4 Million In Annualized Revenues
Veridium Corporation (OTC Bulletin Board: VRDM) today announced its receipt of an order from Granite Falls Energy, LLC ("Granite Falls") for the use of Veridium's patent-pending Corn Oil Extraction System(TM). Veridium will purchase and sell the extracted corn oil and generate an estimated $1.4 million in annualized revenues.
Veridium's proprietary new Corn Oil Extraction Systems(TM) extract high grade corn oil from an ethanol by-product called distillers dried grain ("DDG"). The new system is scheduled for installation by July 2006 at Granite Falls' Granite Falls, Minnesota ethanol production facility, where it is expected to extract corn oil at a rate of about 1.2 to 1.5 million gallons per year.
Veridium's pricing model for its Corn Oil Extraction Systems(TM) is not based on licensing or outright equipment sales, but rather on the provision of its turn-key systems for no up-front cost in return for long-term corn oil purchase agreements based on a fixed discount to prevailing market prices.
Granite Falls is a farmer-owned ethanol production facility that was commissioned in 2004 and is producing an estimated 50 million gallons of ethanol annually. Glacial Lakes Energy, LLC, who is currently using Veridium's patent-pending Corn Oil Extraction System(TM) at Glacial Lakes' Watertown, South Dakota ethanol production facility, is a significant shareholder in Granite Falls. The Granite Falls ethanol production facility is one of more than 65 ethanol production facilities currently operating in the U.S.
David Winsness, chief executive officer of Veridium's industrial design division, stated that "Granite Falls is managed by the same visionary management team that runs the Glacial Lakes Watertown ethanol production facility. Their support as an early adopter of our Corn Oil Extraction System(TM) has helped to establish both market credibility and momentum for innovative technologies. We are grateful for the continued opportunity to work with their leadership and we are looking forward to deploying our technology at the Granite Falls facility."
Additional information is available online at
www.granitefallsenergy.com.About Veridium's Corn Oil Extraction System(TM)
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.
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.
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