Global Agreement

We knew about the building of two new COES at Lakota. We had a hint something was up. But the BIG news here is the new form of technology transfer. Instead of the "GERS financed" option or the ethanol plant "purchase option" - in each case GERS buys the corn oil at a given percentage of the spot diesel price, here the ethanol plant owner . . .

"will directly finance, build, own and operate a facility based on GreenShift's patented corn oil extraction technologies"

They will pay a royalty to Greenshift based on . . .

"an ongoing royalty payment to GreenShift equal to more than about 20 percent of the market price of the extracted corn oil at the time of shipment."

In the past Greenshift insisted on owning the equipment regardless of the financing. Now, under the security of the two issued patents, the company feels secure in selling the equipment to the plant. If this offering is given to the entire market, this may solve two major problems.

The first is financing. Greenshift is not involved in the financing, the Ethanol company can use the COES equipment as collateral for the loan, since they will now own the equipment.

The second is the natural reluctance by the Ethanol Plant to give up control of a production asset on its property. Now it will now own and control the equipment and the related building. This may open the Greenshift COES production to a much larger percentage of the Ethanol Industry than before.

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January 4, 2010 9:00 AM EST

NEW YORK--(BUSINESS WIRE)-- GreenShift Corporation (OTC Bulletin Board: GERS) today announced its execution of an agreement with Global Ethanol, LLC ("Global"), pursuant to which GreenShift granted Global the right to use GreenShift's patented corn oil extraction technologies at Global's 100 million gallon ethanol plant in Lakota, Iowa.

GreenShift's patented corn oil extraction technologies enable GreenShift and its licensees to "drill" into the back-end of first generation corn ethanol plants to tap into the existing reserve of inedible crude corn oil with an estimated industry-wide output of about 20 million barrels per year. This corn oil has been historically trapped in the distillers grain co-product of ethanol production ("DDGS") and is a valuable second generation feedstock for use in the production of advanced carbon-neutral liquid fuels, such as biodiesel, biojet fuel, and renewable diesel, thereby enhancing total fuel production from corn and increasing ethanol plant profits.

Under the terms of the agreement, Global will directly finance, build, own and operate a facility based on GreenShift's patented corn oil extraction technologies designed to extract more than 2.2 million gallons per year of corn oil in return for an ongoing royalty payment to GreenShift equal to more than about 20 percent of the market price of the extracted corn oil at the time of shipment.
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ALL HERE:

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SkunK