GreenShift's Corn Oil Extraction Technology Featured in U.S. EPA's Proposed Changes to Renewable Fuel Standard
May 7, 2009 9:08:00 AM
Copyright Business Wire 2009
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View Additional ProfilesNEW YORK--(BUSINESS WIRE)-- GreenShift Corporation (OTC Bulletin Board: GERS) today announced that its proprietary corn oil extraction technologies have been included in the analyses completed by the U.S. Environmental Protection Agency ("EPA") on the contribution of corn ethanol to the renewable fuels industry.
GreenShift's corn oil extraction technologies make possible the production of biodiesel from inedible corn oil, a previously untapped feedstock entrained in the distillers' grain co-product of corn ethanol production. This increases the yield of biofuel from corn by 7% while reducing the amount of fossil fuels used in the corn ethanol production process by up to 10%.
On May 5, 2009, the EPA signed a notice of proposed rulemaking, Regulation of Fuels and Fuel Additives: Changes to Renewable Fuel Standard Program (the "RFS2 Program"), which was supported by a Draft Regulatory Impact Analysis ("DRIA") made available on the same date. These two documents were drafted to solicit comments pertaining to proposed new rules to increase requirements to use renewable fuels as an important part of the nation's transportation fuel supply. The EPA specifically refers to GreenShift's corn oil extraction technologies in the RFS2 notice and the DRIA:
-- "The corn oil process on which we have chosen to focus for cost and
volume estimates in this proposal is one that extracts oil from the thin
stillage after fermentation (the non-ethanol liquid material that
typically becomes part of distillers' grains with solubles). We believe
installation of this type of equipment will be attractive to industry
because it can be added onto an existing dry mill plant and does not
impact ethanol yields since it does not process the corn prior to
fermentation."
-- "According to economic analyses done by USDA based on the GS CleanTech
[GreenShift's wholly-owned cleantech development subsidiary] corn oil
extraction process, the capital cost to install the system for a 50
[million gallon per year] ethanol plant is approximately $6 million."
-- "In an adjustment to the traditional dry mill ethanol process, corn oil
is removed after the ethanol distillation process from the syrup using
centrifuges. With this adjustment a 100 [million gallon per year] plant
can produce an additional 7 million gallons of corn oil (biodiesel) and
thus increase [an ethanol] plant's fuel production by 7%."
-- "Depending on the configuration, such a system can extract 20-50% of the
oil from the co-product streams, and produces a distressed corn oil
(non-food-grade, with some free fatty acids and/or oxidation
by-products) product stream which can be used as feedstock by biodiesel
facilities."
-- "In addition to generating an additional revenue stream from the
fuel-grade corn oil, reducing the oil content of the [distillers' grain]
improves its flowability and concentrates its protein content. The
de-fatted [distillers' grain] is more marketable than [distillers'
grain] containing corn oil as higher quantities can be included in dairy
and beef cattle feed."
-- "Furthermore, the deoiled [distillers' grain] is believed to be of
higher value as a feed particularly for cattle operations and have lower
energy requirements and VOC emissions during the [distillers' grain]
drying process. GS CleanTech Corp. is currently implementing the process
in 4 ethanol plants."
-- "Since it offers another stream of revenue, we believe it is reasonable
to expect about 40% of projected total ethanol production to implement
some type of oil extraction process by 2022 generating approximately 150
million gallons per year of corn oil biofuel feedstock."
As an update to the EPA analysis, GreenShift now has five operating corn oil extraction facilities. In addition, GreenShift has proven that it can extract upwards of 6.5 gallons of previously unrecovered inedible crude corn oil from the distillers grain co-product of corn ethanol production for every 100 gallons of ethanol produced. This translates to a total market opportunity of 680 million gallons per year of inedible feedstock for conversion into advanced biofuel with the U.S. corn ethanol complex producing 10.5 billion gallons per year. 40% of the total market opened up by GreenShift's extraction technologies is about 270 million gallons per year. GreenShift has about 6% of this market today with its existing agreements to extract 40 million gallons per year of corn oil for refining into biodiesel or renewable diesel.
"GreenShift pioneered corn oil extraction technology," said David Winsness, GreenShift's Chief Technology Officer. "We have refined its value proposition to the corn ethanol industry with a substantial investment and a great deal of hard work. Our ambition is to build value for our shareholders by making a material positive contribution to U.S. renewable fuel production with our technologies. We are thankful and proud that the EPA has recognized the favorable contribution of corn oil extraction technology on corn ethanol production efficiencies and sustainability. We look forward to delivering the many benefits of corn oil extraction to our current and future ethanol clients."
GreenShift recently received Notices of Allowance from the U.S. Patent and Trademark Office for the first two of GreenShift's corn oil extraction patent applications.
GreenShift's technical services staff is available at 888-ETHANOIL or sales@greenshift.com to respond to quotation requests and to answer any questions about GreenShift's corn oil extraction and other technologies.
About GreenShift Corporation
GreenShift Corporation (OTC Bulletin Board: GERS) develops and commercializes clean technologies that facilitate the efficient use of natural resources. GreenShift's revenue model is based on the use of its proprietary technologies to become a leading producer of biomass-derived products, and to do so at reduced cost and risk by extracting and refining raw materials that other producers cannot access or process. Additional information is available online at www.greenshift.com.
Safe Harbor Statement
This press release contains statements that 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 GreenShift Corporation and members of its 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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