Wednesday, December 29, 2010

ADVANCED BIOENERGY and IOWA RENEWABLE ENERGY LLCs

With four Ethanol Plants and nearly 200mmgy of Ethanol production, Advanced Bioenergy, LLC would be a great fit as a GreenShift customer.  It looks like they are starting to shop.  Lets go GERS sales team!
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PLAN OF OPERATIONS THROUGH SEPTEMBER 30, 2011

Over the next year we will continue our focus on operational improvements at each of our operating facilities . These operational improvements include exploring methods to improve ethanol yield per bushel and increasing production output at each of our plants, continued emphasis on safety and environmental regulation, reducing our operating costs, and optimizing our margin opportunities through prudent risk-management policies. We also intend to improve the rail facilities at the Huron plant location, and plan to evaluate adding corn oil extraction technology to one or more of our facilities as well.

SEE HERE page 27
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Now get a load of the last sentence below from this biodiesel producer.  They are worried that the patent litigation may affect the availability of their corn oil feedstock.  The corn oil problems they talk about have been worked out by many producers using pretreatments.  However, if you do not think the industry is taking this litigation seriously - look over this pudding they always say the proof is in. lol

IOWA RENEWABLE ENERGY, LLC
Data provided by USDA, Oil Crops Outlook Report, December 13, 2010

We have also been using corn oil that we obtain from ethanol plants as an alternative feedstock from time to time. We expect that, like animal fats, corn oil may be a less costly feedstock alternative to soybean oil. The National Weekly Ag Energy Round-Up for the week of December 10, 2010 indicates that crude corn oil costs in the Midwest ranged from 53 cents to 54 cents per pound. [SEE HERE for UPDATE:  SkunK says that is more than $4 a gallon!] Corn oil-based biodiesel has cold flow properties similar to those of soybean oil-based biodiesel and accordingly, we may be able to continue to use corn oil as feedstock in the fall and winter months when demand for animal fat-based biodiesel could decrease. Corn oil, however, tends to cause a waxy substance to build-up during the production process. Due to this build-up, we expect that we will not be able to produce any biodiesel blends containing greater than 5% corn oil. The unique characteristic of corn oil could cause it to be a less desirable feedstock then other feedstocks. The amount of corn oil that we will be able to acquire will likely depend upon the rate in which ethanol plants begin installing corn oil extraction equipment at their plants and the extent to which they market their corn oil. Production of corn oil at ethanol plants may be inhibited due to a patent lawsuit related to certain technology used by some ethanol plants to extract corn oil.

Page 10 SEE HERE
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SkunK

1 comment:

Anonymous said...

how is it possible crude corn oil costs same as soy?
my short sale not looky too goody

 
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