In an article about GPRE HERE, Ethanol Producer Magazine covers the large corn oil extraction build out:
"In addition to increased capacity and marketing capabilities, Becker said GPRE’s plans to expand its corn oil extraction operations will also contribute to the company’s future bottom line. In July, GPRE contracted ICM Inc. to install corn oil extraction technology at all of its six existing ethanol plants. Corn oil extraction operations began at the 115 MMgy Obion, Tenn., facility earlier this month and it is expected that similar operations will begin at two of its other plants by the end of the year. Installation of the extraction technology will be complete at all six plants within six months, according to Becker. “This project, we believe, will have positive financial impact, generating operating income in the range of $15 million to $19 million annually, based on the production of 75 to 90 million pounds of corn oil,” he said. The total cost of installing corn oil extraction capabilities at GPRE’s five plants is estimated to be $18 million. Corn oil extraction technology is already installed at the newly acquired Riga and Lakota facilities."
The article fails to mention that the entire GPRE corn oil extraction build out and the "already installed" corn oil extraction systems at the Global Ethanol plants - are licensed by GreenShift. Of course, they could get that information by reading previous editions of their own magazine: Here and Here - as well as many other sources around the industry.
SkunK
Wednesday, October 27, 2010
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7 comments:
It doesn't seem like the financial impact of the corn oil extraction has been updated to reflect the change in prices. The same figures of $15 - $19 million are being used. When the deal was first announced, soy oil was about $.37 per pound. It's now $.495 per pound or a buck a gallon more. Mr. Becker said himself that the corn oil market is very strong due to recent strength in soy/heating oil. I wonder why the old numbers are being used?
The article said six plants, then it changes to five plants at the end. LOL...
In late July, the PR said...
"ICM, Inc. has been awarded turn-key installation contracts at five of the Company's six plants. The expected total project cost for all plants is approximately $18 million."
Here's what this article said...
"In July, GPRE contracted ICM Inc. to install corn oil extraction technology at all of its six existing ethanol plants. The total cost of installing corn oil extraction capabilities at GPRE’s five plants is estimated to be $18 million."
Did they just get the five and six mixed up? I'm still not sure if the 6th plant in Superior, Iowa has been contracted or not.
Interesting News!
"Green Plains intends to use the proceeds from the sale of the Notes for general corporate purposes. Green Plains may also use a portion of the net proceeds from the sale of the Notes to acquire or invest in additional facilities, assets or technologies that it believes will further its growth strategy. Pending its use of the net proceeds from the sale of the Notes, Green Plains intends to invest the net proceeds from the sale of the Notes in short-term investment grade, interest bearing securities. Green Plains does not intend to use the proceeds from this offering to fund its announced acquisition of Global Ethanol, LLC"
http://finance.yahoo.com/news/Green-Plains-Renewable-Energy-pz-1926523113.html?x=0&.v=1
Apparently this blog has turned into a fan page for GPRE instead of a SkunK stock hunter page about Greenshift.
Granted GPRE may have given new life to GERS due to royalties from COES but if we wanted to know about GPRE we could go to their site, not this one.
Enough already!!!!
Yea ok, so $60M for additional facilities, assets or technologies, has nothing to do with Greenshift?
Additional facilities would mean more licensed COES.
Assets or technologies could mean gasification systems for DDG, which Greenshift owns the rights to. The feed wall is inevitable!
Or it would make sense/cents for GPRE to just buy Greenshift out!
They just bought out Global and GERS was pretty tight with them. GERS and Global were working on something that was pretty hush-hush at one of Global's plants. Maybe that's what GPRE is after?
Either way you look at it, this $60M will effect Greenshift in one way or another. It's related information and good to see our #1 customer continue to move forward.
Green Plains has been saying they're after more plants as well as technology upgrades.
The corn oil extraction, algae, and gasification technologies are all patented. Cellulosic oil is patent pending.
"In addition to our patented and patent-pending extraction technologies, we have developed an entire portfolio of innovative biological, chemical and physical technologies with a view towards shifting the U.S. corn ethanol complex into increased financial and environmental sustainability. Our portfolio of Backend Fractionation™ technologies is designed to leverage our existing extraction platform while facilitating the following key goals:
Ø Increase the net energy balance of biofuel derived from corn;
Ø Increase profitability of corn ethanol;
Ø Decrease amount of petroleum burned to make corn derived biofuel;
Ø Increase nutritional content of corn ethanol co-products;
Ø Convert the carbon dioxide emitted from corn ethanol production into liquid fuels and other products;
Ø Diversify the biomass mix accepted and produced by corn ethanol facilities;
Ø Decrease the commodity and financial risk profile of corn ethanol;
Ø Standardize corn-friendly cellulosic technology by building on the existing corn ethanol complex; and,
Ø Enhance the competitive positioning of corn ethanol in the domestic and global markets."
Our Backend Fractionation™ portfolio includes the following technologies:
Technology Function Status
Corn Oil Extraction Extraction of corn oil from distillers grain Commercially Available
Integral Refining Integrated refining upgrade for corn oil extraction facilitiesCommercially Available
Energy & Water Recovery Increases energy recovery and water removal during evaporation Pilot Stage
Distillers Dried Solubles (DDS) Dehydrates defatted syrup into high value feed & biopolymer Pilot Stage
Protein Concentration & Recovery Fractionates distillers grains into HighPro and LowPro Products Pilot Stage
Method III – Cellulosic Oil™ Oleaginous microbes convert biomass into lipids and protein Bench Stage
CO2 Recycling Reform exhaust carbon dioxide into natural gas and liquid fuels Bench Stage
The next technology in the GERS pipeline is the "Cellulosic Oil" technology which converts cellulosic materials (like Post-COES DDG) into an oil feedstock material.
Maybe GPRE is planning to install THAT new technology as well?
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