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GreenShift develops and commercializes clean technologies designed to integrate into and leverage established production infrastructure and distribution channels to address the financial and environmental needs of its clients by decreasing raw material needs, facilitating co‐product reuse, and reducing the generation of wastes and emissions.
GreenShift’s founding mission is to build value by using its technologies to catalyze disruptive environmental gain. GreenShift believes that the first, best and most cost‐effective way to achieve this is to develop technology‐driven economic incentives that motivate large groups of people and companies to make incremental environmental contributions that are collectively very significant. GreenShift’s plan to achieve this goal is based on the extraction, beneficiation and refining of biomass‐derived co‐products that create value‐added renewable energy production opportunities capable of shaving meaningful amounts of carbon and cost off of existing liquid fuel supply chains. Since 2004, GreenShift has invented, developed and commercialized potent new cleantech that enables GreenShift and its clients to “drill” into the back‐end of first generation corn ethanol plants to tap into a new reserve of inedible crude corn oil with an estimated industry‐wide output of about 20 million barrels per year. This corn oil is a valuable second generation feedstock for use in the production of biodiesel and renewable diesel – advanced carbon‐neutral liquid fuels, thereby enhancing total fuel production from corn and increasing ethanol plant profits.
GreenShift’s patented and patent‐pending Corn Oil Extraction Technologies are widely considered to be the quickest and best path for margin improvement for first generation corn ethanol producers today. GreenShift’s extraction technologies increase biofuel yields per bushel of corn by 7% while reducing the energy and greenhouse gas (GHG) intensity of corn ethanol production by more than 21% and 29%, respectively.
These benefits correspond to increased ethanol producer income of about $0.12 per gallon of ethanol produced at current market prices, and can be realized for less than 10% of the capital cost of the host ethanol plant. No technologies have been developed for corn ethanol producers that begin to approach even a fraction of these results in the history of the ethanol industry.
Over 20% of the U.S. ethanol industry is using GreenShift’s patented and patent‐pending extraction technologies today. At full participation by the ethanol industry, GreenShift’s commercially‐available technologies can give way to the disruptive gains that GreenShift was founded to achieve by sustainably producing globally‐meaningful quantities of new carbon‐neutral liquid fuels for distribution through existing supply chains and combustion in our nation's boilers, generators and engines;
• displacing more than 20 million barrels per year of crude oil;
• saving up to 10 trillion cubic feet per year of natural gas;
• eliminating tens of millions of metric tons per year of greenhouse gas emissions; and
• infusing up to a billion dollars per year of cash flow into the corn ethanol industry ‐ the foundation of North America’s renewable fuel production capability.
GreenShift is focused today on supporting integration of its patented and patent‐pending corn oil extraction technologies into as much of the ethanol fleet as possible. GreenShift also maintains its strong commitment to continued innovation and has many additional patents pending for its “Backend Fractionation” portfolio of strategically‐compatible cleantech designed to continue pressing the corn ethanol industry into increased sustainability and global competitiveness.
Address: New York Year Founded :
2004 Annual Revenues:
2009 – about $5,000,000 (projected);
2008 – $23,600,000; and,
2007 – $14,700,000
Type of Technology(ies)
BACKEND FRACTIONATION TECHNOLOGY PORTFOLIO
Technology Function Status - Corn Oil Extraction Extraction of corn oil from ethanol co‐product — Commercially Available
Transesterification- Integrated refining upgrade for corn oil extraction facilities —Commercially Available
Cellulosic Oil™
Oleaginous microbes convert biomass into oil and protein —Pilot Stage
Desiccation/Cavitation Conditions corn and qualified biomass for increased yields —Pilot Stage
Biopolymer Extraction
Extract and convert byproducts into bioplastics — Pilot Stage
Photonic Fuels™
Reform exhaust carbon dioxide into natural gas and liquid fuels — Bench Stage
Fuel Type:
Corn Oil Extraction Produces inedible corn oil feedstock for conversion into biodiesel or renewable diesel
Transesterification Biodiesel Cellulosic Oil™ Produces lipids for conversion into biodiesel or renewable diesel
Desiccation/Cavitation Enhances Corn Oil Extraction and Cellulosic Oil™ yields for biodiesel or renewable diesel
Photonic Fuels™ Methane (for use on‐site in lieu of fossil fuels) and liquid fuels (for sale off‐site)
Major Investors YA Global Investments, L.P.
3 Top Milestones for 2008‐09
A. Complete financing for construction of new facilities based on patented and patent‐pending corn oil extraction technologies.
B. Form strategic partnerships to accelerate and amplify execution of go‐to‐market strategy for corn oil extraction technologies, and to enhance the development of pilot and bench stage technologies.
C. Restructure $40 million in historical debt raised during 2004‐2007 to develop and commercialize extraction and refining technologies.
3 Major Milestone Goals for 2010‐11
A. Build value for GreenShift’s clients and shareholders by building as many corn oil extraction facilities as possible, as quickly as possible, with a view towards achieving 100 million gallons per year of installed corn oil extraction capability within 5 years.
B. Continue to improve upon patented and patent‐pending corn oil extraction and related technologies (i) to maximize yield, (ii) to decrease cost, energy and carbon, and (iii) to enhance the value proposition to GreenShift’s clients and shareholders.
C. Make a meaningful contribution to shifting the corn ethanol industry into increased economic and environmental sustainability by demonstrating the commercial viability of GreenShift’s full Backend Fractionation technology portfolio in collaboration with strategic partners.
Business Model:
GreenShift’s business model is based on Feedstock Ownership and Margin Protection. A sustainable mining business requires a cost‐effective and reliable source of ore; a sustainable petrochemical refinery requires a cost‐effective and reliable source of petroleum; and a sustainable biofuels business requires a cost‐effective and reliable source of feedstock. GreenShift uses its technologies to sustainably produce biomass‐derived products by targeting, extracting, acquiring and refining cost‐effective and reliable raw materials. GreenShift does not generally sell equipment based on its technologies, nor does it provide services based on its technologies, nor does it license its technologies in any conventional way. Instead, GreenShift licenses its patented and patent‐pending corn oil extraction technologies to corn ethanol producers in return for the right to purchase the extracted oil for the life of the use of the technology. GreenShift earns money by buying and selling or refining the extracted oil. The price paid for the oil corresponds to a substantial premium to the value of the oil to participating ethanol producers prior to extraction. At this rate, GreenShift retains about 20% of the value of the extracted oil.
Fuel Cost (per gallon)
The capital cost of corn oil extraction can range from $1.50 to as high as $3.00 per gallon of installed capacity, depending on the specific operating conditions of each host ethanol plant, and the desired oil yield and energy savings. Competitive Edge(s): GreenShift’s primary competitive advantage is its use of its technology positioning to deliver powerful competitive advantages to the renewable fuels industry – increased sustainability, reduced cost, reduced energy, and reduced carbon, all through the industry’s existing production assets.
A. For GreenShift’s Ethanol Clients – increased revenue and earnings; decreased commodity and financial risk; increased nutritional content of DDGS; enhanced energy balance with less carbon emissions; safe harbor from tight margin environments; strong cost advantage; and, increased sustainability and competitiveness.
B. For GreenShift’s Partner Biodiesel and Renewable Diesel Producers – reliable large volume supply of previously unrecovered feedstock (versus no available feedstock); sustainable feedstock available at rates indexed to diesel fuel prices; safe harbor from tight margin environments; strong cost advantage; and, increased sustainability and competitiveness. For context, with a majority of plants adopting GreenShift’s patented and patent‐pending corn oil extraction technologies, and with an estimated 11.5 billion gallons of ethanol produced, the ethanol industry could be saving about 100 million MMBtu per year while producing more than 2.8 million tons of inedible corn oil per year (over 736 million gallons). The result at current market prices is staggering: the ethanol industry could be producing an additional $0.12 per gallon of ethanol produced, or over $1.1 billion, in additional profit today by using GreenShift’s patented and patent‐pending corn oil extraction technologies. Moreover, at 736 million gallons of extracted corn oil potential, backend corn oil could increase the output of the entire existing domestic production of biodiesel several‐fold.
Distribution, Research, Marketing or Production Partnerships or Alliances.
GreenShift’s partnerships include relationships with ethanol, biodiesel and renewable diesel producers. GreenShift is collaborating with corporate partners relative to its efforts to improve on the value proposition of its corn oil extraction and Backend Fractionation technology portfolio. In addition, GreenShift has developed partnerships with a number of academic institutions relative to its ongoing technology development and commercialization efforts.
Stage
Corn Oil Extraction Technologies –
Commercial Website URL www.greenshift.com
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SkunK
Tuesday, November 17, 2009
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