GPRE Conference Call

UPDATE
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At 29:45 into the conference call (for a minute) we get a more detailed schedule for the COES build out:
Building crews are preparing/getting ready to start.
First COES (plant) up in 90 days/start of 4Q.
2nd, 3rd COES (plants) up shortly after start of 4Q
and 4th COES (plants) done in/by end of the 4Q 2010.
5th and 6th Coes (plants) done in 1Q 2011.
Slight/minimal corn oil production in 4Q. 
Better corn oil contribution in 1Q 2011.

Nameplate at 480mmgy ethanol.  They are running at about 520mmgy.  (about 40mmgy over nameplate).  They are optimistic they can buy another plant in 2010.  Talking to a lot of people.  Not actively looking for a Delta-T system.  Looking for an ICM built Ethanol plant. 
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The SkunK just got off the GPRE conference call - although he was just able to only listen to the last 20 minutes or so of the Q&A.  (Whole call now on the GPRE site.)

One of the Q&A the SkunK heard? 

Q -So what do you do with the corn oil.  Its not food grade - What are the markets?

Todd Becker answered in three parts.
1.  The first (highest profit) buyer is the high value industrial market.  There they are looking for a "sustainable supply" for use in industrial plastics and the like. 

2.  The second option is the (animal) "feeder".  The "feeder" likes the product and can use the corn oil to create profit in the feeder industry.

3.  The third (lowest margin) market is Biodiesel.  With the high cost of soy - (he noted the animal fats market has dropped lately) the biodiesel plants can pay 23 - 24 cents a pound for corn oil and still profit. 

Mr. Becker then went on to state that the revenue figures released on the corn oil were based on a slight reduction of DDGS - which sell for about 5 cents a pound, to the added value creation of corn oil which sells for 20 - 25 cents/pound.

I didn't have a recorder on, but that's the way I remember it.  Will be interested in listening to the entire call on the GPRE Website.

SkunK