NEWS from GreenShift

After emailing some questions the SkunK has just gotten an Email response from Mr. Kreisler. The questions (green) and his responses (blue) are below. If you want to go to this next link, it is in a nice one page PDF format.

http://docs.google.com/gview?a=v&attid=0.1&thid=11f2f6add4555f80&mt=application%2Fpdf

1. DOE has invited applications for funding opportunities for a total of $200 Million for Pilot and
Demonstration Scale Biorefinery Projects. Is it something GreenShift might pursue for its pilot
bioreactor or other advanced technologies?

We are submitting an application for DOE funds based on a combination of technologies, including our extraction platform and our bioreactor technologies.

2. After the recent update of the company's web site, I no longer see references to biomass gasification technology or Zeropoint. Has GreenShift’s minority ownership or its exclusive rights to certain ZeroPoint CleanTech technologies changed?

No. However, we have developed exciting new technology that is more compatible
with our existing technologies and less capital and energy intensive as compared to gasification and other thermal technologies. We have modified our commercialization plans in the corn ethanol industry as follows:

Gen 1.0 Standard Corn Ethanol
Gen 1.1 Extraction (oil & other products)
Gen 1.2 Integral Biodiesel Refining
Gen 1.3 Integral New Technology (to be announced)
Gen 1.4 Integral Decarbonization

3. The ECCA Agreement provides that 70% of the membership units in GS NextDiesel will be issued to CleanBioenergy, and that the remaining 30% of the membership units will be issued to GS Adrian which is owned by GreenShift. Is control still maintained by the GreenShift Board of Directors?

Yes, we are the managing member of GS NextDiesel.

4. A number of ethanol producers have recently shut down or filed Chapter 11. How is this effecting GreenShift?

The biggest impact has been a fairly dramatic surge in sales interest. Since resolving steep first mover barriers to acceptance of our technology from invention through the end of 2007, we have only really had two constraints that have limited our penetration: (a) lack of financing sufficient to subsidize deployment of our backlog and (b) the length of our corn oil purchase rights. While many producers have resisted giving up ownership of the corn oil locked in their stillage, having long-term feedstock purchase rights at rates that are indexed to our off-take markets (and that nearly eliminate commodity risk) is a pre-requisite to financing. We consequently resigned ourselves to a penetration goal of 20% of the ethanol industry. This goal, however, may prove to be conservative. Corn and ethanol prices have negatively impacted the working capital of many producers and are projected to only slightly improve during 2009 and 2010. This, in turn, restricts access to debt and equity capital for many producers and, derivatively, the ability to subsidize new capital projects. Granting long-term purchase rights to GreenShift in return for increased cash flows and 100% financing has become more attractive to more producers under these conditions – and even more so considering the support of our pending new equity partner, GE Energy Financial Services. While our sales prospects are likely to improve even more if our patents are approved, the practicalities of the current financial and commodity markets have created increased opportunities for GreenShift to address the financial and environmental needs of an increased number of ethanol producers. We also need to be sensitive to increased counter-party risk. While we have the ability to remove our skid-mounted extraction facilities in the event of an ethanol plant closing, demobilization can cost as much as $500,000 per facility and take as long as 3-4 months – during which time we would lose production and profit. We manage our risks by monitoring the financial and operational health of our clients prior to and after commissioning our facilities.

5. The construction of third party biodiesel plants has suffered from the credit crunch and the high costs of feed stocks. Do you see either of these conditions improving soon?

No. Growth of the domestic biodiesel industry from here will mostly track the availability of new sources of feedstock. We are extractors – we target and extract by-product resources for beneficiation, refining and sale back into commerce. We can either extract feedstock for third parties to stimulate more one-time equipment sales and less annuities at higher risk, or we can extract feedstock for ourselves and produce more annuities at lower risk. We generally favor the latter. That said, we are eager to earn the business of any third party biodiesel producers and developers who have developed their own qualified feedstock model and are in need of refining expertise.

I would like to once again thank Mr. Kreisler for his time,

SkunK

Big Leagues, Algae Bioreactor

While One Penn Plaza is rushing to close the deal on the GE CBE COES financing, hopefully somebody is sitting at a desk in a back office at HQ or even in the front office in Montana filling out the paperwork for this DOE $200M funding opportunity.

Having recently won a $375,000 award from the state of Montana, we have the opportunity with a DOE grant to instantly become one of the headliners in Algae Bioreactor Technology.

We have had the pilot scale bioreactor up now for about three quarters. From the GERS web site: GreenShift’s pilot bioreactor is designed as a mobile demonstration platform to quantify existing bench top testing results and to refine the design parameters for commercial-scale deployments of the technology at targeted locations. It certainly appears we would have both the technical and economic performance data at the bench and pilot scale as required in the application. With our $125,000 already set to match the $375,000 Montana State grant, it would appear to the uninitiated that this half million could be used to provide the 30% non "federal" funds. That could theoretically be parlayed into a total 1.67 Million research grubstake, with no additional cost to the company or shareholders. With a larger company investment, the grant could be huge.

Tiny Office

December 22, 2008

DOE Announces Funding Opportunity of up to $200 Million for Pilot and Demonstration Scale Biorefinery Projects Projects Will Demonstrate Continued Commitment to Develop Sustainable, Cost-Competitive Advanced Biofuels

WASHINGTON – The U.S. Department of Energy (DOE) today announced the issuance of a Funding Opportunity Announcement (FOA) for up to $200 million over six years (FY 2009 – FY 2014), subject to annual appropriations, to support the development of pilot and demonstration-scale biorefineries including the use of feedstocks such as algae and production of advanced biofuels such as bio-butanol, green gasoline and other innovative biofuels. The projects will support the Administration’s comprehensive energy strategy of increasing the nation’s energy, economic and national security by reducing our reliance on foreign oil, and reducing greenhouse gases. While supporting deployment and increased biofuels usage, DOE continues to focus on research and development of advanced biofuels technologies.

“This funding opportunity will look for the most promising technologies that can advance the potential of renewable biomass as a resource for second generation transportation biofuels,” Acting Assistant Secretary for Energy Efficiency and Renewable Energy John F. Mizroch said. “The Department of Energy will select breakthrough integrated biorefinery projects that have technical and economic performance data at the bench or pilot scale to prove they are ready to move a step closer toward commercial readiness.”

The FOA has two topic areas for biorefinery development:

Pilot-scale, minimum throughput of one dry tonne of feedstock per day with a minimum non-federal cost-share at 30 percent.

Demonstration-scale minimum throughput of 50 dry tonnes of feedstock per day, with a minimum non-federal cost-share at 50 percent.

DOE anticipates making approximately 5-12 awards under this announcement, depending on the topic area, and size of awards. Projects selected under this FOA will provide operational data that reduces the risk associated with commercialization. The intent of this FOA is to have integrated biorefinery projects at the pilot and demonstration scale levels operational within three to four years after applicants are selected. All projects must be located within the U.S., use feedstock from domestic biomass resources, and demonstrate significant greenhouse gas reductions on a lifecycle basis. This FOA adds to over $1 billion DOE has committed to research, development, and demonstration of cellulosic biofuels technology.

These pilot and demonstration-scale facilities are intended to lead to commercialization in the near term. If deployed on a large scale, these commercial facilities could produce volumes that could significantly contribute to the Energy and Independence Security Act (EISA) Renewable Fuels Standard goal of 21 billion gallons of advanced biofuels by 2022. The projects selected will demonstrate the commercial viability for producing advanced biofuels from a variety of biomass conversion technologies and non-food feedstocks, therefore reducing U.S. dependence on oil. Advanced biofuels produced from these projects are expected to reduce greenhouse gas emissions by a minimum of 50 percent, as determined by the Environmental Protection Agency.
Mandatory letters of intent are due February, 20, 2009, and completed applications are due April 30, 2009. The complete FOA (number DE-PS36-09GO99038), can be viewed at http://www.grants.gov/. Projects are expected to begin in Fiscal Year 2009 and continue through Fiscal Year 2014. Funding is subject to annual Congressional appropriations.

http://www.energy.gov/news/6817.htm

No Correlation Between Corn Price and Food Costs

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Update? With no new news, the SkunK is maintaining his opinion we will hear about the GE CBE cash (ECCA) being freed up about the 4th of February. Here is my reasoning if you missed it the first time:
http://greenshift-gers.blogspot.com/2009/01/it-is-all-in-timing.html
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SkunK Harangue
The food vs fuel debate seems to the SkunK to be about the food processing industry wanting to go to the American Farmer and tell him how many pennies they will pay for his product. They do like the idea of a bunch of farmers forming an LLC, building a community Ethanol Plant and producing a value added product that competes with them for "THEIR" feedstock. Of course they do not say its all about them paying 4 cents for the corn in a box of corn flakes, rather than the 3 cents they would rather pay.

I do not have to tell you that a third of that corn returns as ethanol that cleans the air and stretches the gasoline supply. A third as CO2, that many plants today capture for that fizz in your soda or to inject deep underground to recover oil from spent fields. Hopefully in the future that CO2 will also be used to feed the algae in a Greenshift Bioreactor. Finally a third of the corn returns as a high quality animal feed product. A product that Greenshift can make even better by removing part of the INEDIBLE corn oil, raising the protein content and creating biodiesel.

Malarkey
Having been in a few third world countries I find it just hooey that some try to link ethanol production with hunger. UN warehouses are brimming with donated foodstuffs and people starve just miles away. Organized gangs/militias attack unarmed relief convoys and sell the food on the black market. Third world governments starve areas of their own county as a tool to weaken political opposition. Innocents starve, the ruthless advance their undemocratic agenda and the "civilized world" watches without a moral compass. So unwilling to judge between the innocent and those trying to kill them, the first world cannot muster even enough moral clarity to defend a convoy full of relief supplies on the way to starving victims. Starvation is a political, moral and logistic problem, it is rarely a supply problem. To say that anyone is starving because General Mills has to pay 4 cents rather than 3 cents for the corn to make a $3.00 box of corn flakes is, well, Malarkey.

Good old Days
Remember the Good o'l Days before Ethanol? The government used to pay farmers to rot their corn in huge storage bins all over the Midwest because of the lack of markets? The price of corn rarely was above the cost of production? Everyone looked at Soviet production numbers to see how much they would need to buy next year? Guess what? With all that excess production, more people were starving in more places all over the world - back in the Good o'l Days before ethanol.
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Wisconsin Ag Connection
December 23, 2008
WCGA: No Correlation Between Corn Price and Food Costs

Over much of the past year, the Wisconsin Corn Growers Association has been running an
aggressive campaign to educate the public that the price of corn is not what's driving up the
higher costs in the grocery store. And now that corn prices have fallen, the group is saying 'we
told you so.' WCGA President Randy Woodruff points out that over the past six months corn prices have plummeted by more than 50 percent, while food prices are up six percent for the year. The Bureau of Labor Statistics also confirms that energy costs fell 17 percent and transportation expenses dropped 10 percent in November.

"The truth is corn prices have almost no effect on grocery store prices, and apparently even the
impact of fuel costs is minimal," Woodruff said. "There are literally only pennies of farm value
in that goose, turkey or roast you will eat for Christmas dinner. And while corn growers and
consumers alike suffer the effects of a shaky U.S. economy some of this country's top food
companies continue to ring up record profits."

For example, an 18-ounce box of corn flakes today contains less than 4 cents worth of corn but
still costs as much, if not more, than it did last summer. Cereal giant Kellog's reported $342
million in net earnings, a 12 percent rise, while competitor General Mills reported $632 million
in operating profits this fall, a nine percent increase. Kraft Food's revenue rose 19 percent and
Campell's earnings rose a whopping 45 percent.

"These recent events make several things abundantly clear," says Woodruff. "First and foremost, there is no real correlation between the price of corn and the price of food at the grocery store. Additionally, the price of ethanol-blended fuels has little to do with food prices and finally, there is no scientific evidence that the rise of the ethanol industry is causing food shortages anywhere in the world."
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That's the way I see it,
SkunK

BioDiesel: We got the supply, Mandated demand!

The Energy Policy Act of 2007 mandates a minimum of 500 million gallons of biodiesel (B100 / B99.9) usage in 2009, growing to one billion gallons in 2012. The new Administration may increase this.

Above and beyond that California, Ohio, Hawaii, and Montana have passed legislation requiring that state governmental agencies use biodiesel. Portland's biofuels mandate began July 1 2007 and requires 10 percent ethanol blends in gasoline and 5 percent biodiesel blends. The cities of San Francisco, Santa Monica and Glendale have all mandated the use of B20 for their municipal diesel fleet. New York, Illinois, Iowa and Tennessee provide excise tax waivers or credits for biodiese usage. California is implementing a Low Carbon Fuel Standard that requires a 10% reduction in carbon intensity in diesel and gasoline fuels by 2020. Biodiesel is one of the primary options that refiners, blenders and importers can use to reduce the carbon intensity of diesel fuel. The Department of Defense is the single largest purchaser of biodiesel in the U.S.

Biodiesel has been used in Europe on a commercial scale for over 15 years. Many countries in the European Union have biodiesel mandates or targeted levels of biodiesel consumption. Estimates for biodiesel usage in the EU in 2007 range from 1.3 to 1.6 billion gallons. Over half of the biodiesel produced in the U.S. in 2007 was exported to Europe to meet this high level of demand for biodiesel. Safeway, UPS and Waste Management Corp use biodiesel blends in their fleets.

Massachusetts, New Mexico and Louisiana have approved biodiesel mandates that have not yet taken effect. Here are some updates on the four states that require or will soon require a minimum percentage of biodiesel be sold across their state. All start at B2 or 2% biodiesel and some go up to B20 or 20% within 6 years! Pennsylvania is just met the production threshold to begin at a 2% blend and Minnesota is moving up to B5 - 5% in May.

Pennsylvania

CST Pennsylvania Gov. Edward Rendell announced Jan. 15 (2009) that the state has met the first in-state biodiesel production threshold of 40 MMgy. As a result, within one year every gallon of on-road diesel sold in Pennsylvania must contain a minimum of 2 percent biodiesel. Pennsylvania House Bill 1202, which was signed into law July 2008, established a state renewable fuels standard, which requires biofuels percentage increases to occur as in-state production for biodiesel and ethanol reach certain levels. Under the legislation, all retail diesel fuel sold must contain:
2 percent biodiesel once in-state production reaches 40 MMgy
5 percent biodiesel once in-state production reaches 100 MMgy
10 percent biodiesel once in-state production reaches 200 MMgy
20 percent biodiesel once in-state production reaches 400 MMgy

Full articles here:

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090116&id=9520730

http://www.dtnethanolcenter.com/index.cfm?show=10&pid=22&mid=77

http://www.biodieselmagazine.com/article.jsp?article_id=3178

Minnesota

Minnesota, the first state to mandate biodiesel in its diesel fuel, will increase the B2 requirement to B5 effective May 5 (2009). The increase in the mandate was signed into law in May 2008. The mandate progressively hikes the biodiesel concentration in diesel fuel from B5 starting in 2012 for non-winter months following a review that increasing to a higher blend ratio doesn't cause economic or environmental harm, and that the supply will be available. Additionally, at least half of the biodiesel must be produced within the state. If these stipulations are met, Minnesota will require a B10 blend in diesel fuel beginning May 1, 2012, until October 2012 when it is reduced to B5. The state returns to B10 from April through October, and moves to a B20 formula on May 1, 2015.

http://www.dtnethanolcenter.com/index.cfm?show=10&mid=77&pid=25

Washington

The standards start at 2%, and ramp up to 5% for biodiesel and 10% for ethanol. Senate Bill 6508 mandates fuel dealers to sell 2 percent biodiesel out of their total diesel sales and 2 percent ethanol out of total gasoline sales. This new state biofuels standard makes Washington a leader among other states that are moving in the direction of supporting renewable energy. It also complements a similar Federal law called the Renewable Fuels Standard (RFS) that mandates the US reach 7.5 billion gallons of biofuel use by 2012.

http://www.renewableenergyworld.com/rea/news/story?id=44298
http://www.biodieselmagazine.com/article.jsp?article_id=879

Oregon

Oregon Biodiesel Mandate May Begin by Summer (2009)
12.18.08
Oregon's biodiesel mandate could begin by the summer of 2009, OPIS reports. Once in-state production reaches 5 million gallons per year for three months, 2% biodiesel in state diesel fuel will be required. After 15 million gallons per year is reached, the mandate increases to 5%.

http://www.worldenergy.net/public_information/show_news.php?nid=818

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August 29th, 2008
Oregon Biodiesel Plant Opening Triggers Mandate
Posted by John Davis
The opening of the 5-million-gallon-a-year Sequential Pacific Biodiesel refinery in Salem, Oregon today is attracting celebrities and kicking in a new biodiesel mandate. The Eugene (OR) Register-Guard reports not only is country music legend and biodiesel backer Willie Nelson expected at the opening, but Oregon’s new biodiesel mandate will start: Once the plant is producing at the 5-million-gallon capacity, that will trigger the state’s renewable fuel standards for diesel, requiring that all diesel sold in Oregon include at least 2 percent biodiesel. Hitting that threshold should help Sequential and the biodiesel industry because it guarantees that a certain amount of biodiesel will be consumed in Oregon, company co-founder Ian Hill said. The new standard will double demand for biodiesel to about 20 million gallons per year, Hill said.

http://domesticfuel.com/2008/08/29/oregon-biodiesel-plant-opening-triggers-mandate/

http://www.biodieselmagazine.com/article.jsp?article_id=1715

Conclusion: The market for BioDiesel is tremendous. In PA alone 1.8 billion gallons of diesel are sold over the course of a year. With even a 2% mandate, that equates to 36M gallons of biodiesel. At five percent it is 90M gallons. Most of these state tie to at least a portion to being internal state production. However, the biggest problem they have in implementing these mandates is finding enough product. With these mandates, biodiesel can get unhooked from the price of diesel. The price is tied to demand. Minimal demand is mandated. The price of biodiesel can run up to a dollar more than the price of petro-diesel. Just the place you want to be if you are the producer with the low cost feedstock - corn oil. At this moment the price of the two is similar.

Good Hunting,

SkunK

It is All in the Timing

When? All are asking "When will the Initial Equity Contribution Date take place?" We are faced with this ominous wording in the filing:

"CleanBioenergy may terminate the ECCA Agreement if the Initial Equity Contribution Date has not occurred by January 31, 2009. GreenShift believes that the Initial Equity Contribution Date will occur in January 2009."

The question the SkunK believes we should be asking is this: When will we find out the Initial Equity Contribution Date took place?

If we look at previous financing agreements we have always had a lag between the event and the announcement.

EXAMPLE ONE
The $10M Yagi line of credit was inked on 11 January 2008. It was in a filing dated the 25th and then the 31st of January 2008.
http://www.sec.gov/Archives/edgar/data/1269127/000126912708000021/ex10a108.txt

EXAMPLE TWO
In the refinance of a portion of the debt for Culinary Oil Plant we saw it in a PR dated 18 December. The PR said it took place earlier in the month.
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=BW&date=20081218&id=9461437

EXAMPLE THREE
In the filing considering this new GE CBE financing the signing was on Dec 11th and the filing on the 16th of December.
http://www.sec.gov/Archives/edgar/data/1269127/000126912708000180/gers8k121608.txt

What is your POINT SkunK?
In a micro-cap stock things do not happen instantaneously. In all three cases above, there was a significant lag between doing the deal and reporting the deal. In each of the good news cases above it was in the company's interest to get the news out as soon as possible. It just takes time to make arrangements that cannot be made until the deal is actually done.

Yeah so?
Well if the deal is done the middle or end of this coming week, or even done on Saturday 31 January, we should not expect to hear about it until the following week. The 5th or 6th of Feb is certainly not out of the question. (On the other hand - if it was done last week we might hear about it this week.)

Note: 25 January 2008 was a Friday. 16 December 2008 was a Tuesday. 18 December was a Thursday. All I can gleam from that is it will probably not be a Monday? In any case you want a guess right? A silly wild haired guess so you can say the SkunK was wrong again - right? OK, of course I cannot help myself. I will pick 4 February as the day we are told about the closing of the deal and that the cash is freed up. We will then be FULL SPEED AHEAD!

Note/Note: Actually I feel pretty confident we will get the news in the next ten trading days - so I have a ten percent chance of being right! Take out the Mondays, add in the fact we apparently have a tendency to push deadlines, throw in a day either side to give me an "almost" and I think I have about a 50-50 chance of being right.

Prognostication Competition?

Lightbeam on i-hub took up the challange and here is his wag:

". . . this week as soon as they can. By wednesday night. There was some heavy buying this last week and I think they will get it done as soon as possible. Last week would of been bad timing with the new pres. IMO"

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35072903

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On the yahoo board we see a countdown that seems to be based on trading days. If that is the case it could be counting down to Groundhog day? the 2nd of Feb? The countdown on the Raging Bull last spring did not seem to amount to much?? The twist this time is some kind of code? with a letter a day? With many better things to do I guess it is something else to watch. . .

As always,
only time will tell,

SkunK

The Double Bottom Reversal

Massive Volume: Over 6 million shares in a single day. Huge percentage increase: Up 28% in a single day. The last four days have been up - and up strong.

It is too early to holler "breakout"! But the SkunK thinks we just may have had a successful test of our October lows. That being the case I think that we may now be pulling out of a double bottom. I know some others have already called this, and emailed me, but I needed a day like today to jump on board. Volume coming off the double bottom should be strong - and today certainly was. What makes this significant is what the final line of the double bottom "W" means.

For youzz that want the full version here it is at the link below. Look at a six-eight month GERS chart and see how you think things line up for you on a double bottom reversal:

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:double_bottom_revers

BIG CHART http://docs.google.com/Doc?id=dgzzx2hv_38ffvmzxdd

Here is the SkunK-i-cized Short Version:

The double bottom is a major reversal pattern that forms after an extended downtrend. As its name implies, the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between.
1. Prior Trend: Was it down - Yep

2. First Trough: Did it set new low - Yes sir

3. Peak: Goes up a bit and stops - sure did

4. Second Trough: 1-3 months test of low - ubetcha

5. Advance from Trough: Clear high volume with buying pressure - so far

6. Resistance Break: go higher than #3 above.

7. Resistance Turned Support: Broken resistance becomes potential support

8. Price Target:The distance from the resistance breakout to trough lows can be added on top of the resistance break to estimate a target.

SkunK Conclusion: If we are in this double bottom reversal formation, then I suspect we are 4 days into step #5. The resistance break referred to in step #6 would be at 8 cents. Once it goes above 8 it may move up to close to a dime (SkunK's guess) and then could drop back to find support at the 8 cent level. From there it could move up to a price target of #3 (8 cents) and the difference between 8 cents and the low (.006). So the sum of .08+ .074=15.4 cents for a target price - to complete this technical formation. . .

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Big days
10/31/08 3,782,788 00.00%
01/21/09 6,189,153 28.24%

Oct 31 is the closest big day to what we saw today. About half the volume and flat. We HAVE NOT SEEN ANYTHING LIKE THIS since reorganization over a year ago. For you old timers this is over 300M shares traded in a single day pre-r/s. The ground is moving.

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The SkunK has given his rather untrusting opinion of technical analysis before. I still believe that technicals do not tell us if the stock is going up or down over the long haul. Fundamentals do. This is why my long term opinion of where we are going has not been swayed by short term lower prices. On the other hand I find technicals fascinating and when I find when they do not work I can normally find I applied something wrong. Like when I first mentioned a double bottom on 31 October. I now can see I was looking at the start of the formation and it was way too early. This taking from both camps works for me. I hope everyone has found what works for them.

As I have said before, I think we are perched for an up move. The timing is the financing deal, one of the keys that needed to be unlocked. If this is a double bottom reversal then it should move up significantly. There are no guaranteeeees - certainly not from me. All I can tell you is what I think. I am setting fat and happy with plenty of shares. I wish I could tell you all my shares were all bought under 2 cents but they certainly are not. But I never have been good enough to just buy the bottom. I am content and confident with a very reasonable average PPS. My public trading post I started last March is @.0353pps Others think it will go down from here. That's fine since every market needs both buyers and sellers. Guess we will see what happens over the next month or so.

Good Hunting,
SkunK
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Disclaimer
**Note: I am a shareholder - I do not work for, nor do I receive any direct or indirect payment from GERS or anyone associated with them. (But it would be Kapitalist Kool if I did) I will not intentionally mislead - but I can be wrong (ask Mrs. SkunK for specific frequencies) - so do your own due diligence - and take responsibility for your own financial decisions – (and your own life in general) good or bad. I do not give financial advice - I let you look at my dd as I try to make sense of it all and make MY decisions. I have been rightfully accused of being a rather cheery, positive individual who laughs at every opportunity. These tendencies may cause me to overlook deficiencies in this stock that are painfully obvious to others. Celebrate today - and some good garage logic luck to ya. SkunK (Blogger formerly know as Skunk)

"Remember the only reason the herd is on the move is because they finally figured out the last place they rushed off to was wrong!" SkunK '09

Algae Oil Penny Stocks Set to Soar

Penny Sleuth? Here is a subscription based Newsletter where GERS is mentioned as an algae fuel stock:

"There are also a few small companies that are working on the technology. Below are three penny stocks in the algae fuel business. All of these stocks have a market cap under $2 million, a share price under 10 cents, and can be found on the Pink Sheets and Over-the-Counter Bulletin Board:

GreenShift Corporation (OTC: GERS)
Nanoforce Inc. (PINK: NNFC)
PetroSun Inc. (PINK: PSUD)

With the coming transition to alternative fuels, early investors in algae oil stand to claim some huge gains if this technology takes off…"

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Read the entire newsletter here:
http://ideainvest.blogspot.com/2009/01/algae-oil-penny-stocks-set-to-soar.html

SkunK

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

Get your bid card, VeraSun Auction in March

Thanks to Lightbeam on i-hub for this one . .

VeraSun to Auction Off Seven Fuel-Ethanol Plants Representing 640 Million Gallons of Annual Capacity, an Industrial Info News Alert

SUGAR LAND, TX, Jan 19, 2009 (MARKET WIRE via COMTEX) -- VSUNQ -- Researched by Industrial Info Resources (Sugar Land, Texas) -- VeraSun Energy Corporation (NYSE:VSE) (Brookings, South Dakota), the nation's second largest ethanol producer, will auction off seven fuel-ethanol plants representing 640 million gallons of annual company that the company acquired when it merged with U.S. BioEnergy. According to court filings, the auction will take place between March 16 and March 31.

http://www.industrialinfo.com/showAbstract.jsp?newsitemID=142998
http://www.tradingmarkets.com/.site/news/Stock%20News/2132570/

The VeraSun plants were not a customer since they had their own plan to extract oil from their DDGs. Now that these ethanol plants are up for bids, I suspect they will be back in the market for a corn oil extraction provider. It would be great to have an organization that we already have a relationship with - like Global Ethanol - pickup some of these plants and add them to the GERS backlog. Any case, lets have that GERS Sales Staff ready to go!

SkunK

Monday Morning PR

January 19th CEOcast Weekly Newsletter
Greenshift (OTCBB: GERS)a company engaged in the development of clean technologies, took an important step towards positioning their NextDiesel branded biodiesel as a leader in the rapidly growing biofuels market, as they announced results from testing that suggests that their corn oil derived biofuel has significant advantages over other biofuels when operating in cold temperatures. NextDiesel demonstrated cloud points ranging betweenminus 3 and 5 degrees,consistently achieving superior cold flow properties when compared to biodiesel produced from soybean oil derived biodiesel, a fuel well known for its benchmark high quality and good cold flow properties in U.S. markets. These results suggest that not only is the company`s corn oil derived biodiesel economically viable, but is of a superior quality to many of the alternatives currently being considered as substitutes for traditional fossil fuels. The stock lost a half a cent to close at $0.015.

http://stockreads.com/Stock-Newsletter.aspx?id=6714

SkunK's been work'ng on the (GERS) Railroad

In the past the SkunK has spent a lot of time talking about the distances between COES and NEXTDiesel. The SkunK has always thought transportation costs to be a real factor in the business plan, but had failed to find details in the Greenshift filings that addressed it. Finally the SkunK found something about how the situation is being handled. Looks like much of our product is going by the most efficient route for bulk goods - by rail.

Here is an article from Sept '08 that slipped by the SkunK that had just what he was looking for:

"NextDiesel is now producing millions of gallons of biodiesel using this [extracted corn] oil. Rail cars regularly arrive at its facility with corn oil from ethanol plants in New York, Wisconsin and Indiana." [Location of first three COES]
http://www.oilgasupdate.com/nextdiesel-alternative-energy-hopes-to-find-right-formula.html

This from the 19 Dec 8-K:
"The Company has executed rail car leases for 14 insulated tank cars to deliver raw material feedstocks and ship biodiesel. Four of the railcars are leased for a 12 month term commencing on April 30, 2008 with a monthly rent of $575. The remaining ten rail cars have a lease term of 24 months commencing on August 13, 2008 and a monthly rent of $600. The rail car leases are treated as operating leases."

So, we have had 4 leased insulated tank rail cars since GERS acquired NEXTDiesel. We have had ten more - for a total of 14 - since 13 August 2008. This is the kind of detail the SkunK loves to see! It fills in the blanks for us shareholders on the outside; every blank filled in strengthens our knowledge base.

However, all this brick and mortar stuff creates serious havoc for the "its all an illusion" party. This is a small but important segment of our overall Psychotropic* Greenshift Deadhead Community. Of course they are up to the challenge - but the SkunK can help. Maybe all our smoke and mirrors are carried around in the 14 insulated tanker cars. Perfect! lol

MICHIGAN DEPARTMENT OF TRANSPORTATION LOAN
"During 2008, the Company received approximately $142,000 of loan proceeds from the Michigan Department of Transportation to assist with the construction of railroad track access to the Company's production facility. The loan accrues interest at 2% below prime rate. Repayment of the loan is waived subject to rail utilization by the Company, which includes generating a minimum of 60 inbound or outbound carloads of freight per year. If these carload minimums are not met, the Company is liable for repayment of the loan on a pro-rata basis . . . "
http://www.sec.gov/Archives/edgar/data/1269127/000126912708000186/gers8ka121908.txt

The plain arrow going to the small print just to the left of the ladder - it says "Corn Syrup Only". The feathered arrow going to the front states a capacity of 17,500 gallons. Tankers like the ones Greenshift leased may have a typical capacity from 12,000-18,000 gallons. As comparison, a large 18 wheeler truck tanker might hold 8.5K gallons.

These details from the NEXTDiesel Web sites:
"Railroad access provides convenient connections to Canadian National, CSX, Norfolk
Southern and the Indiana and Ohio lines."
http://www.nextdiesel.net/about.html

"Access to three major railroads with on site space for 15 rail cars with expansion to 50 rail cars on site."
http://www.nextdiesel.net/BiofuelIndustriesGroupPDF5A.pdf

Here is an on site class that can be taken by biofuel plant employees. Classroom instruction inside the GATX boxcar includes information about the anatomy of tank cars and important safety procedures and regulations. The classroom time is followed by a tour of the archetypal Tank Trainer tank car, which includes the many styles of top valve arrangements, bottom outlet valves, and safety devices found on all types of tank cars. Students are invited to walk through the inside of the car’s tank to see how the valves operate. GATX has one Tank Trainer unit and conducts approximately 15 trainings each year. Most of the classes are held at a customer location at the request of the customer. The Tank Trainer program has been in operation since 1993. http://www.ethanolproducer.com/article.jsp?article_id=4507

In the article below here is everything you want to know about the Ethanol Industry and its relationship with the rail roads:

Staying on Track
According to the AAR, railcar loads of ethanol in the United States increased from more than 25,000 in 2001 to almost 150,000 in 2007. The Federal Railroad Administration said that as of 2006, there were a total of 275,000 tank cars on the rails capable of hauling ethanol. According to American Railcar Industries, a tank car that is designed to carry ethanol can cost between $80,000 and $90,000. http://www.ethanolproducer.com/article.jsp?article_id=4756

CONCLUSION
Corn oil is shipped to the NEXTDiesel plant in our 14 leased, insulated tank cars. The oil comes this way from at least the first three COES sites. The 4th COES site, Riga, MI, is only 15 miles away and the corn oil could come by train or truck. In any case, Greenshift Corn oil is transported to NextDiesel mostly by rail. It leaves as bio-diesel; blended or unblended, in the same way.

SkunK
*Psychotropic stocks may be used recreationally to purposefully alter one's consciousness, as entheogens for ritual or spiritual purposes, as a tool for studying or augmenting the mind, or therapeutically as medication. Because psychotropic stocks bring about subjective changes in consciousness and mood that the user may find pleasant (e.g. euphoria) or advantageous (e.g. increased alertness), many psychotropic stocks are abused, that is, thought about excessively, despite risks or negative consequences. By providing a one stop shop for the latest GERS news, reading this blog daily may help to mitigate time loss associated with psychotropic stock use.

Q&A on Northest Biofuels and the 38M Financing

The SkunK emailed Mr. Kreisler the following question tonight and here is his response.

Question: Can you provide investors information on what effect Northeast Biofuels filing for bankruptcy protection may have on the timing of the anticipated inking of the CleanBioEnergy $38M finance deal?

Mr. Kreisler's Reply

1 - The GE EFS deal was executed on December 11, 2008 and we are working through the conditions required for the release of capital.

2 - NEB experienced some unfortunate set backs arising from the failure of its EPC contractor, Lurgi, to perform as warranted. This resulted in a long term shut down of their operations pending implementation of corrective action. While, our understanding is that this corrective action includes a restructuring, we also understand that the best path forward for all of NEB's creditors and shareholders is to repair, commission and then operate their now idle production facility - and to facilitate the deployment of our COES Facilities. NEB is backed by strong operational and financial management and we are glad to work with them on COES MI today and MII later regardless of whether their operations are conducted in or out of Chapter 11. We have not yet determined what the impact will be of these events on our current deployment schedule.

3 -We have a fairly deep pipeline of contracted COES Facilities and new qualified clients that are eager to take advantage of our established technology leadership and our 100% financing program.

I would like to thank Mr. Kreisler for his response.

SkunK

Northeast Biofuels files for bankruptcy protection

Northest Biofuels is in the Fulton, NY area. They filed for bankruptcy protection today. They are a large plant at about 114mmgy ethanol capacity. They appear to have had trouble coming up to full production. Apparently they know what the problem is and are shutting down to fix it. In the mean time - with no cash flow - they are seeking protection.

The ethanol plant, located at the former Miller Brewery in Volney, opened in August, 2008. The SkunK believes the ethanol plant will house the 11th and 12th COES in the present build out schedule. The 11th and 12th COES have a 30 Sept 2009 planned commissioning date.

The company says none of the 52 workers at the plant will lose their jobs; all of them will help make the necessary improvements.

MacKenzie explained. “Once we complete the necessary plant modifications and commission operation, NEB has the potential to be one of the most profitable ethanol plants in the nation.”
http://www.9wsyr.com/news/local/story/Northeast-Biofuels-files-for-bankruptcy-protection/Zk8qYFwSvEGXUMNRGqL-gg.cspx

SkunK

Greenshift's Branded Biodiesel

Cold Flow Properties of GreenShift's NextDiesel Branded Corn Oil Biodiesel Outperform Soybean Biodiesel

© Business Wire 2009
2009-01-14 14:38:02

http://www.pr-inside.com/cold-flow-properties-of-greenshift-s-nextdiesel-r1006405.htm

By now, many of you Greenshift Philes have beaten the SkunK to the punch. A new press release covering the quality of the our branded product has been released.

A branded name. By branding a name you can increase its value because you sell not only the product, but the trust and reliability you have built up with your customers. The biodiesel industry was originally pushed ahead by tiny operators. The guy making biodiesel in his yard
may have had his heart in the right place, but he is not remembered for the 90% of the time he had a decent product. He is remembered for the time he shut down all the diesel powered tractors in Kornfield Kounty, and the corn crop was planted two weeks late that year.

NextDiesel is a state of the art facility with a testing lab. Greenshift has made the decision to differentiate its product in the market and leverage that huge investment in a modern facility, by selling its biodiesel under a branded name. If successful, this could eventually cause our biodiesel to sell for a premium.

Do you go to the store to buy Klennex? Or do you buy tissue paper?
Do you buy soda pop? or do you buy Pepsi?
Wouldn't it be great to pull into your local station and fill up your 18 wheeler or your European sports car
with NextDiesel" branded corn oil biodiesel? Now all we need is a catchy jingle . . . .

How about "Put a tiger in your tank"? [Already used, SkunK!]
How about "Put a SkunK in your tank!" [Guys in advertising say NO!NO! ]
How about "Smells like Fries, baby!" [not enough differentiation, but getting closer . . . ]
OK, here is my final pitch for the day . . . .

Baseball idioms reference our all-American foreign oil independence theme. The switch to our product should be simple and care free. We need to work in 'corn' to differentiate our product. We need to imply a 'personal choice' about going green. The word 'release' of course has that subtle, yet empowering, orgasmic quality, referencing the power and strength of our fuel . . . so how about:

"NextDiesel: Release your inner can of corn!"

There, it took a while, but the SkunK just saved Greenshift a heck of NY, NY ad campaign bill, so how about a little north on the PPS? Maybe a little personal stock sentiment buy from members of the Board of Directors? . . . what about those shareholder facility tours?? Or even better, how about a break from these massive selling volumes?

Was that jingle a metonymy or a methaphor?. . . ahhhh who cares . . .

Now where was I before I got off track? Oh yeah . . .
With its colder cloud point, it should increase its available market and lower the expense of adding chemicals to allow it to flow on a day like today - where the mercury is afraid to leave the bulb at the bottom of the thermometer!

This is not a new idea. Ever since there was a NEXTDiesel - there was NEXTheat. This is our branded home and business heating oil. This from the NEXTDiesel web site:

Our NextHeat product is a blend of pure NextDiesel biodiesel with conventional high or low sulfur home heating oil that meets the precise ASTM D 396 specification. The result is NextHeat … a fuel that helps heating oil burn cleaner, making it better for the environment and home heating systems.
http://www.nextdiesel.net/nextheat.html

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Earthtimes (press release) - London,UK

PR-Inside.com (Pressemitteilung) - Wien, Austria

Ad-Hoc-News (Pressemitteilung) - Germany

istockAnalyst.com (press release) - Salem, OR, USA

The SkunK noticed quite a few bylines off the recent PR's coming out of European services. This I believe is part of the broader Investor Outreach I predicted. It would make sense to provide information to foreign investors. I mentioned earlier that Europen investors centered on the Frankfurt Exchange make up about a quarter of the readers to this blog. [Willkommen!] I think this outreach is though 'Business Wire' described below:

Business Wire, a Berkshire Hathaway company, is utilized by thousands of member companies and organizations to transmit their full-text news releases, regulatory filings, photos and other multimedia content to journalists, news media, trade publications, institutional and individual investors, financial information services, regulatory authorities, Internet portals, information web sites, business-to-business decision-makers and consumers worldwide.

Business Wire's extensive news distribution network spans 150 countries and 45 languages. Complete regulatory news and filing services are provided in the US and Canada, as well as sanctioned regulatory services in markets throughout Europe. Business Wire has more than 30 bureaus worldwide, with locations in the United States, Canada, Europe and Asia.

Good hunting,
SkunK

Nobel Prize-winning physicist Steven Chu

Chu Promises to Tackle Climate Change and Seek Energy Independence
Tuesday, January 13, 2009

Here are some NEW quotes from Nobel Prize-winning physicist Steven Chu, nominated by President-elect Barack Obama to head the Energy Department. The SkunK set some text in bold blue that he believes may have direct application to GERS' future.

". . . he was optimistic that ways can be found to make coal a cleaner energy source by capturing its carbon dioxide emissions."

". . . climate change is "a growing and pressing problem" and the nation's dependence on oil represents a threat to the U.S. economy and security."

But Chu, when pressed by senators, also said coal must not be abandoned as a primary source of energy, although he promised that research into capturing carbon emissions -- pollution linked to climate change -- would be pursued aggressively.
http://www.foxnews.com/politics/2009/01/13/chu-promises-tackle-climate-change-seek-energy-independence/

*********

What exactly are the rights held by Greenshift in this Algae Carbon capture/bioreactor field?? We go back to 2005 to see this:

GIDC's [GreenShift Industrial Design Corporation, now wholly owned by Greenshift] license with Ohio provides for non-exclusive rights to the technology for the purpose of air pollution control of exhaust gas streams from electrical utility power generation facilities, and exclusive rights to the technology for the air pollution control of exhaust gas streams from all other sources, including mobile applications, and to process carbon-containing compounds from any other source.
http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20051212005469&newsLang=en

The way the SkunK reads this - Greenshift can use this technology anywhere - They have the exclusive rights at ethanol plants and other fermentation areas. This is obviously their preferred point of commercialization. However, they also have non-exclusive rights in the huge clean coal electric utility area. If they could acquire new patents based on further refinements by Greenshift engineers, they could then gain market protection and exclusivity to their process in this huge market area. This is more than just a SkunK flight of fancy. Remember the previous blog on the recent grant? Greenshift's Algae Bioreactor grant will be used to explore the clean coal carbon capture in Montana.

SkunK

Double tax credit for Renewable Energy?????

Thanks to a reader for this tip just coming out of Washington. The mixing credit for Biodiesel is now $1 a gallon. Chance it could go to $2??? Greenshift sells both blended and non-blended fuel. When they sell to blenders the credit is accounted for in the price. But they are also certified blenders themselves.

But SkunK - not a big deal - its only an extra BUCK!!

Only a Buck huh?? Let's do a little math. 13 Coes operating at full capacity on 30 November would be at a rate of over 19mmgy/year. If the economies remain that Greenshift can make money without the credit - then two dollars a gallon blenders credit could add $38M not only to revenue - but to the bottom line.

This from the 19 Dec 8-K:

The Company also sells blended biodiesel fuel to buyers not certified as blenders with the IRS. Sales of blended fuel to such customers are also based on market prices. Upon the sale of blended biodiesel fuel, the Company (not the buyer) may be eligible to collect certain amounts under federal incentive programs (currently $1.00 per gallon).

For the nine months ended September 30, 2008, . . receipts from this source was $832,513.
********
Jan. 12 (Bloomberg) -- President-elect Barack Obama is making “significant” changes to his economic stimulus program, such as boosting energy tax incentives, after members of his own party called elements of the plan inadequate.

Senator Maria Cantwell, a Washington Democrat, said Summers showed a willingness to double tax credits in the bill for renewable energy to more than $20 billion.

Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat who sought more funds for energy programs, said yesterday, “There is going to be a much greater commitment of funds to projects that reduce our dependence on foreign energy.”

http://www.bloomberg.com/apps/news?pid=20601070&sid=a.v7wS1tTE20&refer=politics#

Still waiting . . . . .

The SkunK has been waiting for our real competition to begin extracting corn oil on a commercial basis so he has a decent yin graph to chart GERS' yang progress against. The true competitors have been Verasun and Primafuel. Both were going to have viable, working, commercial corn oil extraction units working in 2008? ? ? More on that later.

Sure, we also got competition in the form of mom and pops spinning their Ethanol Plant Syrups in the back enclosure off the boiler room. Best I can figure they take that result and either sell it as a livestock feed additive or mix it back into their DDGs as a branded specialty product. I have pictures in my mind of highly paid technicians, neglecting their regular duties, processing the home made residue by skimming the corn oil off holding tanks with two x fours. The SkunK's comical visions are apparently not that far off. "Originally we allowed it to separate in our syrup tank, . ." said one process engineer using a self-designed process in 1Q 07 DGQ. Some of the independent results are described as "animal feed grade corn oil". Oh how expensive the "inexpensive route" can be. .

http://www.commonwealthagrienergy.com/

I have yet to find a Non-Greenshift COES producing corn oil and shipping it to a Non Greenshift Bio-diesel refinery. Once I find that I will see if any shipments are not just experiments and are done on a regular basis. [more than a one time shot might indicate it worked]. The SkunK cannot prove it is not happening, but after looking through quite a few sites and SEC filings - I cannot find it happening anywhere. Yet.

Here is the chart real size: http://docs.google.com/Doc?id=dgzzx2hv_36kf36b3m6
First conclusion: Our big boy competition has not got a commercial COES up and running yet. The independents do, but in many cases it turns out animal feed quality corn oil. ICM will sell you equipment - so will crown iron works - but then where are the quality and production guarantees?

Many bio-diesel plants talk corn oil, but soon find out they cannot process it with standard equipment. GERS has 60,000 hours of commercial COES experience going to the spring of 2006 and that extracted corn oil has been made into biodiesel. Have we learned from that experience? You bet. We are almost three years down an experience trail our competitors are just beginning to walk on. The uncommitted market here is huge. The SkunK believes that virtually all Ethanol Producers will eventually extract corn oil in some fashion. The economics of the industry are pressing them to do it sooner rather than later. Greenshift could be extremely financially successful even with a competitor or two that has an operating commercial COES. Will we see the first competitor's system "this winter"? Maybe.

The SkunK has also found a newcomer to the corn oil extraction business after he built his chart above. FEC Solutions has sold only one unit that I can find. That was to LINCOLNWAY ENERGY, LLC who first ran it for six months on a trial basis starting in April 2008 . They now "expect" to produce 3000 tons of corn oil/year from their 50mmgy Ethanol plant. (This from a plant that is running about 8% over their ethanol rated capacity.) Depending how much this crude corn oil weights I figure that is between .7 and 1mmgy. That is between half to 2/3 of the results we "expect" to see from Greenshift. FEC Solutions then buys the oil for resale with a handling fee. In any case, even though we still do not have information Greenshift COES have run over a quarter at 1.5mmgy capacity, Greenshift has the big lead.

http://www.fecsolutions.com/index.htm

*********
First here is the progress of Verasun's Corn Oil Extraction Project.

"VeraSun has been eyeing the idea of corn-oil extraction since 2004"

http://www.distillersgrainsquarterly.com/article.jsp?article_id=1251&q=greenshift

"The company originally announced its oil extraction technology in November 2006."

"http://74.125.95.132/search?q=cache:HNyw3zfsTAIJ:www.biodieselmagazine.com/article.jsp%3Farticle_id%3D1204+verasun+corn+oil+extraction+november+2006&hl=en&ct=clnk&cd=3&gl=us

http://www.verasun.com/press/details.cfm?ID=117

"In 2007, VeraSun received a $1 million tax incentive from the state [IA] in order to develop the technology to extract corn oil from the ethanol byproduct, distillers dried grain."

"The company also received $200,000 from the state's Value Added Agricultural Products and Processes Financial Assistance Program to build a 1,300-ton-a-day corn oil extraction facility in Fort Dodge."

http://www.messengernews.net/page/content.detail/id/510180.html

June 16, 2008 Verasun still said:

"The company anticipates operation of the corn-oil technology, . . . to begin in the fourth quarter of 2008."

http://www.ethanolproducer.com/article.jsp?article_id=4326

November 2, 2008

"To date, that [corn oil extraction] facility has not been built."

http://www.messengernews.net/page/content.detail/id/510180.html

*********

Here is Primafuel's Short history

Ethanol Producer Magazine

September Issue - It was expected the . . .

". . . installation of the full unit is completed in November. "

http://www.ethanolproducer.com/article.jsp?article_id=4637&q=smaart&category_id=44

A month later . . .

Ethanol Producer Magazine

October Issue

"The extraction unit is slated to be operational this winter, . . ."

http://www.ethanolproducer.com/article.jsp?article_id=4704&q=smaart&category_id=56

BioDiesel Magazine

Jan 09 Issue. Three months later. . .

Read below carefully. Although it's not "completed". Although it's not "operational" . They did "employ" it in August 08. Man, sometimes the PR on this stuff will spin you around. Apparently "employ" is equivilent to "install". It's in place but not working.

Amaizing Energy Holding Co. LLC, a 55 MMgy dry-mill corn-based plant in Denison, Iowa, was among the first ethanol companies to employ Primafuel’s SMAART Oil corn oil extraction system in August 2008 http://www.biodieselmagazine.com/article.jsp?article_id=3120

*********

Greenshift - Abbreviated COES History

Little Sioux Corn Processors, a 50 MMgy plant in Marcus, Iowa, began using GreenShift’s technology in the spring of 2006.

Utica Energy LLC in Oshkosh, Wis., began using it in the spring of 2007.

Western New York Energy LLC in Median, N.Y., began extracting corn oil in February 2008.

Marion, IN - 1.5mmgy; Riga 1.5mmgy are COES also completed in 2008 (and I suspect Albiob, MI.)
http://www.ethanolproducer.com/article.jsp?article_id=4326

******

One more thought. Greenshift's bioreactor plan is to reduce smokestack emissions of CO2 and other nefarious stuff as it produces algae for ethanol production and bio-diesel.

The best I can tell Primafuel's system and some others just plan to produce algae for fuel.

******
Good Hunting,

SkunK

Competition Nipping at our Heels

Primafuel launches international Algae Biorefinery Program

Primafuel, a private company, provides competition with the Algae Biorefinery development and the corn oil extraction of GERS. With support from academia - California, Europe and Israel -they appear to have it all - all for except leading in commercial success. When it comes to making something actually work, I'll put my money on the engineers and businessmen at Greenshift. This is not just a tired saying - I ACTUALLY PUT MY MONEY on Greenshift. (lol)
**********
Best of luck to Primafuel in this important work. May the best (public) company win!

Jan. 8, 2009, at 5:18 p.m. CST
Signal Hill, Calif.-based Primafuel has unveiled its international Algae Biorefinery Program intended to combine upstream algae production and downstream biorefinery systems that will inevitably serve as an innovative platform for commercializing algae technologies

“Our unique solutions are tailored to maximize algae’s tremendous potential,” said Richard Woods, chief executive officer of Primafuel. “Our biorefinery platforms extract and purify nutritional products, while producing both chemicals and renewable fuels.”

See entire article here:
http://www.biodieselmagazine.com/article.jsp?article_id=3120

Another, new, different, but very related article:

http://www.greencarcongress.com/2009/01/primafuel-partn.html

See Primafuel's web page here:
http://www.primafuel.com/

Good hunting,
SkunK

The Sustainable Grant

The SkunK wanted to find out all he could about the Grant that Sustainable Systems received. this is the criteria the grant was based on:

The Board takes the following criteria into account when making funding decisions:
Has potential to diversify or add value to a traditional basic industry of the state's economy,
Shows promise for enhancing technology-based sectors or commercial development of discoveries,
Employs or takes advantage of existing research and commercialization strengths,
Has a realistic and achievable project design,
Employs an innovative technology,
Is located in the state,
Has a qualified research team,
Has scientific merit based on peer review, and
Includes research opportunities for students
http://businessresources.mt.gov/BRD_RCT.asp

************

This is like an Executive summary of the approved request for funds. Notice it does not say anything about an Ethanol Plant. There are no Ethanol Plants in Montana. This may be tested on a Montana Coal plant, which is the way Dr. Bayless originally conceived the idea. The successful results should be easily transferred to both the ethanol and the coal industry.

Development and Commercialization of a Biomass Based Photobioreactor for CO2 Sequestration with Applications in Clean Coal Energy Production Sustainable Systems LLC, Missoula To reduce anthropogenic contributions of CO2 to our atmosphere, Sustainable Systems Inc. is pursuing the development and commercialization of a novel photobioreactor as a CO2 sequestration device for coal liquefaction and coal fired power plants. The bioreactor passively collects sunlight and CO2 for the cultivation of algae. The resulting biomass can then be used as a raw material for fuels and an array of specialty products. This technology has the potential to propel Montana to the forefront of innovative solutions to managing CO2 emissions. Sustainable System’s objective is to build and demonstrate a pilot scale photobioreactor utilizing an industrial CO2 source, and to collect additional data for design optimization before deployment of commercial-scale systems. http://businessresources.mt.gov/Includes/RCT/09Projects.pdf
********

Here is a success story of Research and Development of Biobased Products from Montana Grown Oil Seed Crops

Commercialization Successes

Paul Miller and David Tooke, Sustainable Systems, Inc. , Missoula, developed an ultra low VOC wood stain/sealer for exterior wood surfaces. EcoSeal (tm) is made from more than 80% Montana grown and processed oilseeds. The product capitalizes on the market swing away from wood coating and preservative products that release VOCs and toward more environmentally friendly formulations. EcoSeal (tm) is sold at Burleys Natural Home Supply and Home Resource in Missoula. Additional formulas for interior and deck stains/sealers are being developed and will be commercialized in the near future.

http://businessresources.mt.gov/BRD_RCT_Success.asp

*********

Company/Private Collaborators

Sustainable Systems collaborated with TechLink, MSU Northern and MSU Bozeman to scale up processing capabilities to produce proprietary hydraulic fluid based on high quality vegetable oils.

http://businessresources.mt.gov/BRD_RCT.asp

Good Hunting,

SkunK