With One Eye Looking Forward . . and One Eye Looking Back at the Competition. . . my eyes kinda hurt!

SIOUXLAND ETHANOL, LLC 10-K

Background of the Plant
Began production in May 2007 as a 50mmgy nameplate capacity Ethanol Plant, located in Jackson, Nebraska. Total start-up costs were $80M. In fiscal year 2008, they produced approximately 53.3 million gallons of ethanol and 174,000 dry equivalent tons of distillers grains from approximately 19.3 million bushels of corn. In January 2006, they announced an intent to double the production capacity of the Plant from 50 to 100 million gallons. However, tightening industry profit margins and other industry uncertainties led them to delay this expansion indefinitely.

Corn Oil Extraction Contract
During May 2008, the Company entered into a contract for the design and installation of a corn oil extraction system at the Company’s production facility. The extraction system will allow the Company to produce approximately 1.0 million gallons of corn oil per year and is expected to be fully operational early in calendar year 2009. The total cost of the contract is approximately $1,200,000. Through September 30, 2008, the Company had incurred costs of approximately $603,000 included with construction in progress. The agreement also provides for the rental of a temporary system at $25,000 per month, allowing the Company to begin the extraction process prior to the completion of the permanent installation. The rental fees paid will be credited to the price of the permanent system. In December 2008, the Company began extracting corn oil using the temporary equipment with installation of the permanent equipment expected in early calendar year 2009.


What to do with the Corn OIL?
Beginning in December 2008, corn oil produced at the plant was sold to local buyers at current market prices. The Company has an agreement with a to-be-developed biodiesel facility under which approximately 50% of the Company’s estimated annual corn oil production would be sold. The agreement is subject to a number of contingencies, including the construction of the biodiesel facility, which has not yet commenced.

A majority of their DDGS, and all of their MWDGS and corn oil produced at their plant are shipped by truck.

SkunK's Conclusion
The million gallon a year rate is the competition's "advertised" rate. We are maybe five months from finding out what the actual rate is - if they publish it in their next quarter report. Since nothing permanent seems up and running - you have to figure the estimate is based on an extraction test at 2 gallons/minute. Similar GreenShift's tests are reported at 3 gallons/minute. The rate of extraction, type of contract and and the temporary system the SkunK believes is consistent with Primafuels Solutions. No name was given.
http://www.sec.gov/Archives/edgar/data/1320050/000095013709000265/c48701e10vk.htm

Good Hunting,
SkunK