If you plan to Expand . . . use the "Patented COES"

With all the new filing out there in the Ethanol Production Industry  - the SkunK has found a small treasure trove of new information.

On February 3, 2010, the EPA released its final regulations on the Renewable Fuels Standard, or RFS 2. Many of the plants are grandfathered in at their current operating capacity.  Any expansion of their plant will require a 20% reduction in green house gas (“GHG”) emissions from a baseline measurement. For this they may be required to "install advanced technology such as corn oil extraction, . . ."    Many of the public Ethanol Plants have this standard warning found deep in "Risks Associated With Our Operations".  I pulled the first three I saw:
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"If we sought to expand capacity at our Facility, we would have to apply for additional permits, install advanced technology such as corn oil extraction, or reduce drying of certain amounts of Distillers Grains. 

SOUTHWEST IOWA RENEWABLE ENERGY, LLC p.21
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"If we sought to expand capacity at our ethanol plant, we would have to apply for additional permits, install advanced technology such as corn oil extraction, or reduce drying of certain amounts of distiller’s grains."

NEDAK ETHANOL, LLC p.22
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"In order to expand capacity at our plants, we may be required to obtain additional permits, install advanced technology such as corn oil extraction, or reduce drying of certain amounts of distillers grains."

BIOFUEL ENERGY CORP.p.25
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And here is an update on an ol'Friend in North Dakota who GreenShift had almost partnered with.

"During 2008, the Company entered into an agreement to operate a third party’s corn oil extraction equipment to be installed in our Plant. Due to the downturn in the economy that occurred during the last six months of 2008, the third party we contracted with was unable to obtain financing for its operation until some time during 2009. The Company terminated its agreement with the third party during 2009 due to the Company’s decision not to install such equipment at this time. The Company may revisit this project in the future."
 
RED TRAIL ENERGY, LLC p.3
 
SkunK
PS.  It is amaizing to think that only a few short months ago it was often repeated on the financial boards that Corn Oil Extraction was a myth.  That it took more energy than it produced.  That it was a basically flawed technology that would never pan out.  That the patents would never be approved.    All of that has now changed.  And of course the SkunK is not the only one who has been pointing at these things - there are many who are trying to get the word out.  The serious doubters have moved past these canards - now mostly looking at past performance to (mis)judge future events - you know the thing they always warn you against! 

Sure, we all wish the PPS was "higher", the OS "tighter" and that the financial balance sheet was more . . .  ahhh. . . "balanced".  And the SkunK has been famously wrong about pps predictions in the past.  But the distance COES have traveled in the last six months is nothing short of incredible.  They are now pushed by the EPA as a proven technology.  The GERS patents have been approved - multiple times.  They are even now part of the standard clause as a requirement for expansion.  And if we continue to move in this same direction, the SkunK sees a rose' future.  More on that later.  Good luck investors!