Saturday, February 27, 2010

Confirmation

One of the key GreenShift arguments from the patent litigation filings was that Dave Winsness provided the COES technology to ICM in the form of two COES. ICM then used that technology to develop their own COES, rather than pay the royalties due a patented pending (now patented) Corn Oil Extraction System (COES). Another key argument was that not only was the Clean Tech Inventors the first and only to patent, but they were the first with the technology. A devestating argument was that the CleanTech Inventors first provided the technology to ICM - who then started selling their own version of a COES.

The SkunK found a 2005 article that seems to back up and provide irrefutable confirmation of the GreenShift position on each and every front. For the conspiracy types - this is not information provided by Greenshift to Ethanol Producer Magazine. This is an article where both ICM and Westfalia provided information directly to a reporter who then quoted their Company Officers! Thanks to the Internet we can go back and see what people were saying BEFORE this litigation began . . .

From the June 2005 Issue of Ethanol Producer Magazine:*************
"ICM Inc. is installing centrifuge technology provided by Vortex Dehydration Systems LLC in two of ICM's 40-mmgy plants, according to ICM Director of Plant Services Cheri Loest. She said the skid-unit technology intercepts the thin stillage stream before it enters the evaporator and removes corn oil. General Manager Dave Kramer told EPM he intends to implement the Vortex centrifuge in Sterling Ethanol, a 40-mmgy Colorado ethanol plant that recently broke ground."
http://www.ethanolproducer.com/article.jsp?article_id=221

************
AH-ha you say! ICM got the technology from Vortex Dehydration Systems LLC - not GreenShift!! This is where the history of this company is important. All you have to do is go to the Greenshift web site and read Dave Winsness bio to see this:
"Prior to joining GreenShift, Mr. Winsness served as chief technology officer and eventually chief executive officer of Vortex Dehydration Technology. . . "http://www.greenshift.com/whoweare.php?mode=4

Dave Winsness was one of the chief inventors. The inventors brought the COES patents to GS Clean Tech. You can look at the patents on the US Patent Office site and see that GS Clean Tech has been assigned the patent. GS Clean Tech is wholly owned by GreenShift Corp. The chain of patent ownership is clear and seems not to be an issue.************
OK Skunk, so it seems pretty obvious that ICM got the original technology from the GreenShift patented COES. But what about Westfalia??




"Westfalia Separator Inc. is now offering a de-oiling technology for condensed distillers grains. Keith Funsch, market manager for Westfalia, said the company is developing a centrifuge technology that would remove free corn oil from the syrup coming out of the evaporators. "

So this article shows that in 2005, the year after the 2004 Clean Tech provisional patent was applied for, Westfalia was still "developing" a corn oil extraction system . . . with NO COMMERCIAL COES.
To the SkunK, the information above seems to be very relevant to the final outcome. It appears to increase the chances of a settlement benefiting GERS. When and how much? We could have a settlement announced today - or this thing could drag on for years. The strength of the GreenShift case abbreviated below would seems to push this ahead:
1. Holding the patents
2. Providing the prior art arguments to the Patent official prior to the patent issue.
3. Providing the COES to ICM before they developed their version.
4. The first development timing showed above.
The upsetting of the business and future contracts for ICM and Westfalia while this litigation continues should motivate them towards self-interest and the negotiating table. Who would write a contract with either for a COES if it may cause a 60% liability for their Ethanol Plant in the future? So the two things: The strength of the GreenShift position and the self-interest of the accused patent infringers should speed this along. My best wild guess - and its only that - is a settlement before the 4th of July.
SkunK


This from the same 2005 article:

Friday, February 26, 2010

Richard Spink's Resume

Current
•Director of International Investments at RMD Group of Companies
•Founder at Hogwards Vintage Showrooms
•Principal at Alternativa Limited

******************
Director of International Investments
RMD Group of Companies

(Venture Capital & Private Equity industry)

January 2010 — Present (2 months)
Responsible for all international portfolio companies, invested and prospective investments. Troubleshooting and advisory to the board of RMD


Founder
Hogwards Vintage Showrooms
(Furniture industry)

January 2010 — Present (2 months)

At Hogwards, we offer high quality period furniture to discerning clients through a network of retail outlets across Ukraine, at price levels which are highly competitive even to Chinese reproductions of our original pieces. Website will be available within 6 weeks with online purchasing options and browsing of our entire stock across our Kiev, Donets'k and L'viv outlets. We are also able to buy to order for clients who need a specific piece or even entire home of high quality furniture.


Principal
Alternativa Limited
(Management Consulting industry)

August 2009 — Present (7 months)

Drawing upon 19 years of experience in Eastern and Central Europe, I now work on a project by project basis assisting overseas investors with Due Diligence, Project Evaluation, Custodian and Investigative Services in the CEE markets; primarily Ukraine; current projects involve the Energy, Renewable Energy, Medical/Health and Real Estate sectors

**************************
Past
•Chief Executive Officer (CEO) at Landkom International Plc
•Consultant; Central/Eastern Europe at Private
•Director of Central and Eastern European Operations at British Seafood Group
•Founder at Vavo.com
•Founder at Vavo Internet Services
•Director of Business Development at Lycos Bertelsmann GmbH
•Business Development Director at Fortune City
•Sales Director/Consultant at Various
•International Sales Representative at Infotrade, S.A.
•Tactical Communications Operator at Royal Air Force (RAF)
****************************
http://ua.linkedin.com/in/richardgspinks

SkunK

Ukraines Economy News

Landkom ex-head's Alternativa (IOM) launches biofuel projects in Ukraine
British businessman Richard Spinks, the former chief executive officer of Landkom International PLC agriculture company with the assets in Ukraine, has established a new company, Alternativa (IOM) Limited, which plans to develop biofuel projects in Ukraine and is also considering similar projects in Russia and Canada.

According to the report, Alternativa (IOM) Limited and GreenShift Corporation (United States) have already entered into an exclusive supply and cooperation agreement on innovations in the biofuel sector.

The aim of this agreement is to design and develop integrated feedstock and renewable energy production facilities.
http://www.interfax.com.ua/eng/eco/32898/
http://www.interfax.com.ua/eng/eco/page/2/

SkunK

Thursday, February 25, 2010

Hot Penny Stock Alerts

Hot Penny Stock Alerts for February 25: MPPC, PWRM, NXTH, ZVTK, GHLV, GNXP, CBAI, GERS, RCYT, CYBL

GreenShift Corp. (OTC: GERS) $0.0002 -33.33% Alternativa (IOM) Ltd. and GreenShift enter into exclusive supply and cooperation agreement (OTC:GERS), ($GERS)
http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100223006241&newsLang=en

Rest Here:http://www.beaconequity.com/hot-penny-stock-alerts-for-february-25-mppc-pwrm-nxth-zvtk-ghlv-gnxp-cbai-gers-rcyt-cybl/

Also Vol Alert Here Under
"Most Active OTC BB Stocks"

http://drstockpick.com/?p=6318

GERS High Volume at Closing Bell
http://stocktips.doubleinstocks.com/?p=2865&aidref=A1090560170

SkunK

Tuesday, February 23, 2010

Surprise!


This demonstrates that GreenShift certainly has the ability to surprise. . .
###################
Picture of Richard Spinks, 42, British Entrepreneur in the Ukraine

Developers Target Ukraine For Integrated Feedstock And Biofuel Refinery
By Business Wire 02/23/10 - 09:18 AM EST


Alternativa (IOM) Limited and GreenShift Corporation (OTC Bulletin Board: GERS) today jointly announced that they have entered into an exclusive supply and cooperation agreement for the purpose of designing and developing sustainable integrated feedstock and renewable energy production facilities.


Alternativa’s team is excited at the prospect of working with the cutting edge technologies available from GreenShift. Our team has deep experience in the production of Biofuels Feedstocks and, with the proprietary technologies that GreenShift brings to our projects, we are confident that we can be a leading low-cost producer of biofuels with best-of-class production facilities.”

Greg Barlage, GreenShift’s Chief Operating Officer added, “Alternativa has a strong business model and a team with the skill-sets needed to successfully develop projects in difficult environments. Alternativa’s team is very experienced in Ukraine, Russian and other Central and Eastern European markets, with a strong understanding of the local business climate. The Ukraine project has the potential to pioneer Ukraine’s move to renewable energy, while providing economic stimulus, increased employment and a valuable contribution to addressing the challenges posed by global climate change. We are excited to have the opportunity to partner with Alternativa in its development of this and future projects.”

Spinks concluded: “GreenShift focused on feedstock development years before the rest of the market, and has since invented and commercialized technologies that have created the first scalable large-quantity, second-generation feedstock model world-wide – a model the U.S. EPA recently predicted will contribute an incredible 680 million gallons per year of feedstock to the renewable fuels industry by 2022. We are excited to have GreenShift’s experience and support at the start as we build facilities that we hope will set a new standard for the sustainable production of renewable energy products.”

The market for rapeseed in the European Union (“EU”) is strong, and is characterized by high prices resulting from significant localized demand for rapeseed oil for food and biofuel uses. The volume of rapeseed production has grown substantially in recent years within Ukraine, as the Ukraine government has focused on renewable fuel production.

Alternativa’s Ukraine project can be expected to provide a strong, stable base of local demand that Ukraine growers can rely on to increase rapeseed crop production to serve the domestic requirements of Ukraine as well as exports into the EU. Alternativa has already entered into a long term agreement with a major producer of rapeseed towards providing the feedstock for its first planned Ukraine project.

About AlternativaAlternativa (IOM) Limited is the latest company to be established by British businessman Richard Spinks, the former Chief Executive Officer of Landkom International PLC (LSE:LON), a company he founded in 2005 and built to become one of Ukraine’s leading rapeseed growers and the first to achieve a listing on the London Stock Exchange in November 2007. Mr. Spinks has been successfully founding and growing businesses in the Central and Eastern European markets since 1989. His vision has been and remains to develop and bring fully integrated Agricultural and Renewable Energy Production Assets to the market, thus bridging the gap between reliable feedstock supply and reliable energy production. Mr. Spinks has assembled Alternativa’s highly capable development team with proven leaders from 7 countries with strong Finance, Legal and Operational backgrounds, priming Alternativa to establish itself as a leading low-cost producer of renewable energy products with best-of-class production facilities.


REST of Article Here:http://www.thestreet.com/story/10687183/1/developers-target-ukraine-for-integrated-feedstock-and-biofuel-refinery.html
****************
This looks like the same Richard Spinks :
http://investing.businessweek.com/research/stocks/people/person.asp?personId=45320710&ticker=LKI:US
Here is a great background article from two years ago on the Ukraine project and Richard Spinks:

Ukraine has huge farming potential, but is clogged with small farms, growing patch-work quilts of near-subsistence cropping, between thousands of hectares of land abandoned twelve years.

This is bizarre, since the soil is superb black loam, the rainfall in western Ukraine at least is a very adequate 700mm, and long hot summer days ensure 6t/ha of milling wheat and 4t/ha of oilseed rape can be harvested under clear blue skies. The trouble is there’s virtually no investment. Nobody will back what this former breadbasket of the Soviet Union. Nobody, that is, apart from British entrepreneur Richard Spinks and his colleagues.

Operating as Landkom, and with multi-million pound backing from four international hedge funds, they have already secured over 56,000ha of prime arable land. As I left the country they were heading off to assess a further 180,000ha. Their goal is 500,000ha in five years time.
It’s mind boggling. But its not pie in the sky. A blend of commercial skills, political footwork and clear routes into the global financial markets means Landkom is growing very fast indeed. It is already the third largest farmer in Ukraine, after Cargill and ADM. Soon it will be the largest.

Rest Here:http://www.fwi.co.uk/Articles/2007/07/20/105203/Farming-in-Ukraine.htm

Here is a BBC Video report on Mr. Spinks and his project from last August.

(Their are many good parts here - but the SkunK gets way fired up when he hears the professor complain about investment. In the Skunk's world of reality, fat bellied romanticism about "other people" "enjoying" subsistence farming is normally quickly cured by watching people starve to death or just missing a few meals yourself.) And the BBC trying to complain about a donated ambulance! Wow!

Note Mr. Spinks is the the former Chief Executive Officer of Landkom International PLC (LSE:LON), a company he founded in 2005 and built to become one of Ukraine’s leading rapeseed growers and the first to achieve a listing on the London Stock Exchange in November 2007. Here are articles discussing that departure:
*******************


SkunK

Monday, February 22, 2010

Tampa Ethanol » GreenShift Applies for Patent, Sues 3 Ethanol Plants

http://www.google.com/url?sa=X&q=http://tampaethanol.com/blog/%3Fp%3D4045&ct=ga&cd=9uJ3SrlB3KY&usg=AFQjCNGNB5di5Gp-vEj-8nZoaI0n4S4W6A
***********
I bet that is supposed to read third "issued" patent?SkunK

OS From 10B to 20B

The limit on the number of common shares that can be issued has been raised from 10Billion to 20Billion. As of the 15th of February, GreenShift had just under 8B (7,950,481,840) shares outstanding. The company believes that they will need to exceed the 10B shares soon - and that is the reason for the increase on the limit. GreenShift has a large legacy debt and shares are being used to service that debt by paying the main creditor (YAGI) with shares. YAGI is limited in the % of shares they can hold so the shares are normally sold immediately into the market. Anytime the OS in increased it can hurt the value of an individual share, if the value of the company does not increase at, or more than the rate of OS increase.

When they asked Yogi Berra if he wanted his pizza cut into 4 or 6 pieces he said: "You better make it 4 - I don't think I'm hungry enough to eat six pieces" Not sure if it really happened, but its my favorite dilution story. If the pies stays the same size - and if you have more pieces - they get smaller. If the actual number of shares doubles - and the company does not increase its market capitalization - then each share is worth half of what it was before. If the company doubles in value as it doubles the number of shares - the value of each share stays the same.

http://www.sec.gov/Archives/edgar/data/1269127/000126912710000021/gerspre14c22210.htm
SkunK

February 22nd CEOcast Weekly Newsletter

After not being in one of these CEO cast weekly newsletters since October, Greenshift is featured two weeks in a row.

GreenShift Corporation (OTCBB: GERS)announced that a Notice of Allowance was issued by the U.S. Patent and Trademark Office for the companys third patent on its corn oil extraction technologies. GreenShifts patented corn oil extraction technologies enable the company and its licensees to drill into the backend of corn ethanol plants to tap into an existing reserve of inedible crude corn oil that has been historically trapped in the distillers grain co-product of ethanol production. David Winsness, GreenShifts chief technology officer, said that we are excited to be receiving this third patent as it further strengthens our first mover technology position. While we have many additional applications pending, our issued patents are generally directed to mechanical extraction of oil from concentrated stillage. Shares of GERS remained unchanged at $0.0004.

Rest Here:
http://stockreads.com/Stock-Newsletter.aspx?id=21110

SkunK

Friday, February 19, 2010

National Ethanol Conference

Ed Carroll, Greg Barlage and Whit Davis attended the National Ethanol Conference for GreenShift. Feb 15-17 in Orlando. I would love to hear from someone who was there!

You can see their names on page 9 of 18 here:

http://www.nationalethanolconference.com/attendees/documents/15thAnnualNationalEthanolConferenceAttendanceRosterFinal.pdf


Oh, this is interesting:
:::::::::::::::::::
3:45 pm - 5:15 pm Concurrent Breakout Sessions
Topic A: Technology Advancements for Today’s Biorefineries -
Osceola Ballroom CD

Panelists will discuss processes such as oil separation, repowering and gasification to improve plant economics, energy efficiency and yield.
Moderator: John Caupert, Director, National Corn-to-Ethanol Research Center
Bill Lee, CEO, Frontline BioEnergy LLC
Trevor Bourne, CEO, Global Ethanol
Spencer Swayze, Senior Manager of Business Development, Ceres, Inc.
Jason Van't Hul, Industry Technical Consultant -Grain, Oil, Biofuels Group, Nalco
:::::::::::::::::::::::::
http://www.nationalethanolconference.com/agenda/
You hard core investors know Trevor Borne is the leader of Global Ethanol, who has one patented GERS COES in Riga and will have two more running in Lakota before the end of this quarter. He has been a great partner with Greeenshift.

SkunK

Thursday, February 18, 2010

Getting D@#N Serious!


Ethanol Producer Magazine
Greenshift claims patent infringement

Posted Feb. 18, 2010

GreenShift Clean Tech Corp. is getting serious about protecting its corn oil extraction technology, filing two suits in the same week that it gained a third patent. GS Clean Tech issued a complaint to United States District Court, Southern District of Indiana on Feb. 12, suing Cardinal Ethanol LLC for infringing on GreenShift’s U.S. patent regarding corn oil technology. Four days later, GS Clean Tech issued a complaint to the United States District Court, Northern District of Illinois, against Big River LLC suing, again, for infringing on GreenShift’s corn oil technology.
********
Even with both complaints now issued and the cases pending, GreenShift released more patent news on Feb. 16. A Notice of Allowance was issued by the U.S. Patent and Trademark Office for GreenShift’s third patent on its corn oil extraction technologies. David Winsness, GreenShift’s chief technology officer, said that “we are excited to be receiving this third patent as it further strengthens our first mover technology position. While we have many additional applications pending, our issued patents are generally directed to mechanical extraction of oil from concentrated stillage.”
http://ethanolproducer.com/article.jsp?article_id=6381
*************
Nice Article in the Ethanol Industry's leading publication of record. It is balanced - reporting and quoting both sides. Nice. I am waiting for the rest of the media - even outside the industry - to report this key David vs. Goliath story. Luckily one of the rocks in our sling is multiple approved U.S. patents!
SkunK

Kansas Farmer Reports

ICM Will Defend Customers Against Patent Lawsuits

ICM, Inc., based in Colwich, has announced today that it will defend two of its customers against in lawsuits filed Feb. 12 in Indiana and Illinois by GS CleanTech Corp. The suits allege that an oil recovery system manufactured and installed by ICM at Cardinal Ethanol in Indiana and Big River Resources in Illinois infringes on a patent claimed by GS CleanTech. ICM vice president of marketing Chris Mitchell said ICM filed its own litigation against GS CleanTech and its affiliate, GreenShift Corp. in Oct. of 2009. "ICM believes that GS Clean Tech's alleged patent claims will be proved to be invalid," Mitchell said.

Rest of Article Here:
http://mobile.kansasfarmer.com/index.aspx?ascxid=cmsNewsStory&rmid=0&rascxid=&args=&rargs=9&dt=634021061697404000&cmsSid=35608&cmsScid=9

***********************
It is reported in this small venue that ICM will defend BOTH its customers

SkunK

Wednesday, February 17, 2010

Hard NEWS Story - Outside the Industry

Biotech company sues Cardinal Ethanol
Posted: February 17, 2010.

Indianapolis -- GreenShift Corp., an OTC-traded biotechnology company based in New York City, has filed a lawsuit in federal court in Indianapolis claiming Cardinal Ethanol of Union City is infringing on GreenShift's patented methods of extracting valuable corn oil from the byproducts of ethanol production.

GreenShift has sued ethanol plant operators in other states over similar claims that they are using the company's technology without paying for a license. GreenShift says 20 percent of the U.S. ethanol industry is using its patented technology without paying for permission.REST HERE:
http://www.indystar.com/article/20100217/BUSINESS/2170329/1003/BUSINESS/Biotech-company-sues-Cardinal-Ethanol

SkunK

Cardinal Steps Back, ICM Swings Back

ICM enters lawsuit on Cardinal Ethanol side
News release posted Feb. 17, 2010

ICM Inc. announced Feb. 16 that it is defending Cardinal Ethanol LLC in legal action commenced February 12, 2010, in U.S. District Court, Southern District of Indiana by GS CleanTech Corporation (“GS CleanTech”). The suit alleges that Cardinal Ethanol’s operation of an oil recovery system manufactured and installed by ICM Inc. infringes a patent claimed by GS CleanTech.

“ICM will defend its customers as a companion matter to ICM’s own litigation against GS CleanTech and its affiliate, GreenShift Corporation, which we filed in Kansas in October 2009. ICM believes that GS CleanTech’s alleged patent claims will be proved to be invalid. In the Kansas litigation, we have asserted that GS CleanTech/GreenShift misrepresented the liability of ICM’s customers for operating the ICM system, and that various actions of GS CleanTech/GreenShift constitute unfair competition and wrongful interference with ICM’s existing and prospective business and contractual relationships. Our customers continue to operate their oil recovery systems acquired from ICM, and we continue to see strong interest from prospective customers for further orders for ICM’s equipment,” said Chris Mitchell, ICM vice president of marketing.


Jeff Painter, Cardinal Ethanol president and CEO stated, “ICM will be defending Cardinal in the Indiana litigation; because the litigation involves our operation of ICM equipment, we are directing all further inquiries to ICM. In the interim period, Cardinal expects to continue to operate its oil recovery system.”

http://www.ethanolproducer.com/article.jsp?article_id=6379

SkunK
OPINION: The fact that ICM sent out the vice president of marketing to announce a legal action has to mean something. . . With the little I know about risk aversion in decision makers, the statement that interest is still strong in buying a non-patented COES system that has ongoing patent infringement cases against it - spread around the country - seems a bit like a strong wish. I am sure I am reading too much into this, but Cardinal does not seem to take a position in this article, only that it is using ICM equipment and ICM will handle the litigation - and the questions.
If at some point a judge issues a preliminary injunction - stops a specific plant from using a non- GERS COES while the patent litigation drags on - that will - in the SkunK's humble, unlearned opinion - be a game changer. I think if and when that happens, their will be NO interest in future non-patented COES from any source. Everyone who is running a non-patented COES will as nervous as the SkunK in church (with two old girlfriends cackling together behind him.) Nobody wants to be left making the payments on a car you can't drive. (The car driving metaphor is not intended for those of you making payments on an ex-wife - no matter how fitting - thats a metaphor for a non-patented COES up on blocks due to a preliminary injunction . . . )
I am not a patent lawyer and I am a investor in Greenshift. Will that affect my opinion? Well yeah . . . and before anyone blows a gasket cause I got an opinion on an opinion blog check out my disclaimers at the bottom of the blog. :~)

Tuesday, February 16, 2010

Notice Of Allowance Issued For Third GreenShift Corn Oil Extraction Patent

********BREAKING NEWS**************
Article Below was posted on Greenshift Web site!
( its now hitting the wires !)
Further Strengthens Intellectual Property Position

NEW YORK, N.Y., February 16, 2010 – GreenShift Corporation (OTC Bulletin Board: GERS - News) today announced that a Notice of Allowance was issued by the U.S. Patent and Trademark Office for GreenShift’s third patent on its corn oil extraction technologies.

GreenShift’s patented corn oil extraction technologies enable GreenShift and its licensees to “drill” into the backend of corn ethanol plants to tap into an existing reserve of inedible crude corn oil that has been historically trapped in the distillers grain co-product of ethanol production. This corn oil 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, increasing ethanol plant profits, and reducing lifecycle greenhouse gas emissions from the production of corn ethanol.

David Winsness, GreenShift’s chief technology officer, said that “we are excited to be receiving this third patent as it further strengthens our first mover technology position. While we have many additional applications pending, our issued patents are generally directed to mechanical extraction of oil from concentrated stillage.”

GreenShift’s portfolio of patented and patent-pending corn oil extraction technologies can increase an ethanol producer’s biofuel yields per bushel of corn by upwards of 7% while reducing the energy use and lifecycle greenhouse gas emissions by an estimated 21% and 29%, respectively.

Winsness concluded: “Licensed facilities based on our technologies can earn a payback for ethanol producers in less than 18 months at current market prices. We are eager to help ethanol producers realize the compelling benefits of our patented and patent-pending corn oil extraction technologies while we earn a return on our investment and build value for our shareholders.”

About GreenShift Corporation

GreenShift Corporation (OTC Bulletin Board: GERS - News) develops and commercializes clean technologies designed to address the financial and environmental needs of its clients by decreasing raw material needs, facilitating co-product reuse, and reducing the generation of wastes and emissions.

GreenShift’s mission is to build shareholder value by using its technologies to catalyze disruptive environmental gain. GreenShift believes that the first, best and most cost-effective way to achieve this is to develop technology-driven economic incentives that motivate large populations of people and companies to make incremental environmental contributions that are collectively very significant.

With adoption by most of the U.S. ethanol industry, GreenShift’s commercially-available technologies can give way to disruptive gains by enabling sustainably increased production of globally-meaningful quantities of renewable fuels for distribution through existing supply chains.
GreenShift also maintains its strong commitment to continued innovation and has many additional patents pending for its Backend Fractionation™ portfolio of strategically-compatible cleantech designed to continue driving the corn ethanol industry into increased sustainability and global competitiveness.

REST HERE:
http://www.greenshift.com/news.php?id=258

****************************
For a (partial?) list of GERS Pending Patent Applications see Here:
http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=0&f=S&l=50&TERM1=winsness&FIELD1=&co1=AND&TERM2=&FIELD2=&d=PG01
SkunK RanT:
Which one of these? did we get a Notice of Allowance for? GERS did not say - only that it strengthened our COES position. No need to give any "infringers" out there a chance to refine their legal defense. The SkunK muses the world already has enough rich patent lawyers - I have heard that only about 5% of patent cases make it to a jury verdict - Patents are rarely overturned - am I reading 2% at one estimate?? - So if the odds are overwhelming that the Greenshift patents will be upheld, this will be settled out of court - Maybe serious negotiations are in order now - and all the companies can get back to making money for us poor ol'shareholders and not the patent lawyers? lol

SkunK

Big River Resources Sued By GreenShift Subsidiary For Patent Infringement

Blog Readers were rewarded with a little news out of the box last Friday when SkunK's research staff (web crawlers: the centrifuges of the web) were able to give you some hard to find - but public information - on this filed lawsuit. Just to let you know - non blog readers are just now getting the news!
***********
Files for Injunctive Relief to Cease and Desist Unlicensed Use of Patented Corn Oil Extraction Technology

NEW YORK, N.Y., February 16, 2010 – GreenShift Corporation (OTC Bulletin Board: GERS - News) today announced that its wholly-owned subsidiary, GS CleanTech Corporation (“GreenShift”), has commenced legal action in the United States District Court, Northern District of Illinois against Big River Resources Galva, LLC and Big River Resources West Burlington, LLC (collectively, “Big River”) for infringing on GreenShift’s U.S. patent covering corn oil extraction technology.

The complaint alleges that Big River is infringing U.S. Patent No. 7,601,858, titled "Method of Processing Ethanol Byproducts and Related Subsystems” (the “858 Patent”). The '858 Patent covers processes for recovering corn oil by evaporating and mechanically processing thin stillage, a precursor to the distillers grain co-product of corn ethanol production (“DGS”).

A motion for preliminary injunction was also filed with the complaint. In its motion, GreenShift argues that it has sufficient evidence to prove that Big River is infringing GreenShift’s patented corn oil extraction technology and this infringement has caused and will continue to cause irreparable harm to GreenShift.

Use of GreenShift’s patented and patent-pending corn oil extraction technologies is proven to provide licensed producers with significant competitive advantages over their competitors, including increased profit, reduced energy costs, a smaller carbon footprint, and lower risk.

http://www.greenshift.com/news.php?id=257

**********
SkunK

Spreading the word

This will get the word out to the entire Ethanol Industry.
http://www.dtnethanolcenter.com/index.cfm?show=10&mid=85&pid=6

SkunK
(Thanks to a reader for spoting this)

Monday, February 15, 2010

February 16th CEOcast Weekly Newsletter

Although the information below about the RFS2 is not "news" to those of us who follow Greenshift daily, the fact that GERS is featured in the CEOcast Weekly Newsletter is an indication that the company is working to educate the investing public about the company. Greenshift has not been featured here since the CEOcast Weekly Newsletter on October 26th of last year.

GreenShift Corporation (OTCBB: GERS)announced last week that its patented corn oil extraction technologies were featured prominently in the final rule for the expanded Renewable Fuel Standard (RFS2) published by the U.S. Environmental Protection Agency (EPA) on February 3, 2010. The companys 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 an existing reserve of inedible crude corn oil that has been historically trapped in the distillers grain co-product of ethanol production. In its Regulatory Impact Analysis, the EPA highlights the key role that it expects corn oil extraction will play in the evolution of the U.S. renewable fuels industry, stating its belief that 70% of the U.S. corn ethanol industry will use back-end corn oil extraction technology to produce 40% of Americas biodiesel feedstock by 2022. Shares of GERS were unchanged, closing at $0.0004.
http://www.google.com/url?sa=X&q=http://stockreads.com/Stock-Newsletter.aspx%3Fid%3D20856&ct=ga&cd=iiFPZ9OBhsw&usg=AFQjCNGADfXyqld4RvoEl-NGoY7D2ffcSQ

SkunK

Time line from the Cardinal Filing



The SkunK went through the filing and tried to find every date so one could see a timeline. I may find dates in other filing that I can add to this so we can keep it straight:

Aug 2004 Clean Tech filed first COES Provisional Patent Application “050”

2004 Inventors Disclosed Technology to ICM. ICM executed Confidentiality Agreement. ICM purchases two authorized COES.

2005 The Inventors invited Ethanol manufacturers to symposium to hear about COES – 30% attended.

May 2005 Clean Tech filed first COES Non-Provisional Patent Application “859”

23 Feb 2006 '858 patent filed

27 June 2008 Tricanter Purchase and Installation Agreement with ICM & Cardinal. Greenshift bid on the job, but was not chosen. Greenshift believes ICM's bid was cheaper because ICM had little or no R&D - they instead used Greenshifts Intellectual Property with out paying for it. (Didn't dear ol'mom teach me a word for that?)

(This Greenshift argument is on 2nd para, p 27 - 2nd part of Cardinal filing - or - page 34 of 40 of entire PDF - those page numbers are on top of page in filing)

Nov 2008 Cardinal Produced Corn Oil & Ethanol

July 2009 Greenshift sent letter of notice to Cardinal

Aug 2009 CleanTech receives response about Cardinal letter - from ICM’s counsel - with Prior art argument

13 Aug 2009 CleanTech submits all ICM’s remaining prior art arguments to patent examiner

25 Aug 2009 Patent Examiner issued Notice of allowance allowing all of the then pending claims – OVER ALL prior art arguments.

13 Oct 2009 ‘858 patent Issued, claiming priority back to the provisional ‘050” application

The one thing that has to be remembered is that Greenshift does not claim to have invented centrifuges. The old timer with the spooky stare in the picture had something to do with it. A centrifuge is basically what a milk/cream separator is and that has been around for over a hundred years.* Various companies have been using centrifuges to separate out solids and oils for a long time. Many companies were using centrifuges to separate the DDGs from the mash liquids (stillage, syrup whatever) since commercial ethanol production began. The argument that if some company was already using a centrifuge for another purpose - it can therefore violate any US Patent that includes a centrifuge - is in the Skunk's humble unwashed opinion: "flippin' mad dog crazy". **

Greenshift, through Cleantech, through the original inventors, claims and was awarded the patents for Corn Oil Extraction System. This is what brought SkunK to this investment - now over two years ago - and this is what will keep him here - through thick and thin.

One of the most persuasive arguments the SkunK found in this filing is the revelation that the patent examiner had access to the ICM claims of prior art and then still ruled to issue the patents to GreenShift.

That should make a TOUGH row to hoe for ICM - or anyone - to invalidate the patents. Like an NFL instant replay - it seems the weight is given to the first call. Then the red flag is thrown - arguments (prior art) - can be made and reviewed (instant replay) and another decision is given concerning the challenge made. It appears the patent guy who made the first call has already watched the replay and listened to the arguments!

I don't know the odds of a call being reversed at this point - but I think the chances of 'da NFL commissioner coming out of his sky box to change the call has gotta be pretty slim!

SkunK

*De Laval made important contributions to the dairy industry, including the first centrifugal milk-cream separator and early milking machines, the first of which he patented in 1894.
http://en.wikipedia.org/wiki/Gustaf_de_Laval




** My apologies to ol'yeller and all the other "flippin' mad dogs" I may have offended with this blog.

http://www.imdb.com/title/tt0050798/

Here is another "Flippin" MAD DOG
MD 20/20 a.k.a. Mad Dog is an American fortified wine. MD 20/20 has an alcohol content that varies by flavor from 13% to 18% (with most of the 18% varieties discontinued, although Red Grape is reportedly available in 18% ABV). The MD stands for the Mogen David wine company which produces MD 20/20 as the 20/20 wine company

Sunday, February 14, 2010

Media matters

Here is a local area report (InsideIndianaBusiness.com) on the pending lawsuit. This local media outlet will likely attempt to get more information. It will be interesting to see if attempts are made to handle this local media discretely or if the Ethanol Plant reaches out to the local media and aggressively attempts to "educate" the local jury pool with its side of the story. Nothing wrong with getting your side of the story out if that is what you wish to do. But how they respond to local media requests may be our first indication where this is going - and how fast.

http://www.google.com/url?sa=X&q=http://www.insideindianabusiness.com/newsitem.asp%3FID%3D40129&ct=ga&cd=QZHlCCNopRI&usg=AFQjCNFWq0svVAG50iN19GEnjgUbvqBHoQ

SkunK

Cardinal Ethanol, LLC


Well - this ain' no Cardinal. But I told you I had a couple surprises waiting for me when I got back from vacation. We have had so much GERS news that I have been remiss. This here partridge fellow though he could fly through my bedroom window. If being winter - the window was closed. Now we have a bunch of windows facing south each like 5X5. They are sliders with a screen on half. We got little birds bouncing off all the time like baseballs off the lead milk bottles at the fair. This big guy had some steam built up, picked the unscreened portion and got through the first pane of glass. Although the second pane held, the first one must have exploded! What a mess. Large chards still in the snow bank outside - hope I don't forget the next time I blow snow! Enough about that poor bird!

It appears Cardinal is/was well aware of the GreenShift letter, the GreenShift patents and the possibility of being forced to pay damages. The SkunK just found this statement in Cardinal Ethanol's 10K filed 2009-12-28.
"We may be subject to litigation involving our corn oil extraction technology. We have received written correspondence from GreenShift Corporation asserting its intellectual property rights to certain corn oil extraction processes we obtained from ICM, Inc. in August 2008. The correspondence from GreenShift indicates that it will seek to enforce its patent rights against ICM and the Company. According to information available through the U.S. Patent and Trademark Office, certain patents have been issued and other patents will be issued to GreenShift. If GreenShift files an intellectual property infringement action against the Company, GreenShift will likely seek damages from the Company. If GreenShift pursues an intellectual property claim against the property, we may incur significant expense in defending such claims and if GreenShift is victorious we may be force to pay damages to GreenShift as a result of our use of such technology." p. 17 - bottom
(For you early birds the SkunK had the wrong link - thanks to a reader for catching it - this one should be good)
****************

The SkunK wanted to know how the whole corn oil extraction thing was working out for Cardinal and found this in the 1oQ that just came out 2010-02-11

"Corn oil represents an additional revenue source for us. Our corn oil sales increased in the three month period ended December 31, 2009 as compared to the same period in 2008 as a result of increased production in the three month period ended December 31, 2009. Our corn oil extraction equipment was not operational until November 2008, part way through the three month period ended December 31, 2008. We are continuing to fine tune the operation of our corn oil extraction equipment and find ways to operate this equipment more efficiently." p. 17 bottom

****************
The SkunK thinks the many small Greenshift investors and the inventors of the Corn Oil Extraction System patents would sure appreciate their business - and could help them operate their equipment more efficiently . . .
SkunK

Friday, February 12, 2010

Big River Resources Galva, LLC

The SkunK's WEB Crawlers are getting a real workout! Check this out!! Our GERS' world is moving!

Another suit was filed today for patent infringement! Today!
http://docs.google.com/fileview?id=0B_ch8gAs4lCcNTdjODdiMTktZTBhNS00ZjlhLWFmNTMtNjc4NDcwZDQxOTY3&hl=en

vs Big River Resources Galva, LLC

GreenShift is asking for . . .

". . . the following relief:
A. The entry of judgment in favor of GS CleanTech and against Big River;
B. A preliminary injunction prohibiting further infringement of the ‘858 patent;
C. A permanent injunction prohibiting further infringement of the ‘858 patent;
D. An award of damages adequate to compensate GS CleanTech for the infringement that has occurred, but in no event less than a reasonable royalty for the use made of the inventions of the ‘858 patent as provided in 35 U.S.C. § 284, together with prejudgment interest from the date the infringement began;
E. An award to GS CleanTech of all remedies available under 35 U.S.C. § 284;
F. An award to GS CleanTech of all remedies available under 35 U.S.C. § 285;
G. An award to GS CleanTech of all remedies available under 35 U.S.C. § 154(d);
and
H. Such other relief to which GS CleanTech is entitled under law, and any other and
further relief that this Court or a jury may deem just and proper.
"

Date # Docket Text
2/12/2010 1 COMPLAINT For Patent Infringement filed by GS Cleantech Corporation; Jury Demand. Filing fee $ 350, receipt number 0752-4526907. (Attachments: # 1 Exhibit A, # 2 Exhibit B)(Carson, Robert) (Entered: 02/12/2010)
http://www.rfcexpress.com/lawsuit.asp?id=54254

Here is Big River Resources Galva home page:
http://bigriverresources.com/index.php

Here is their last Newsletter (Sept 09)where they mention:
"West Burlington continues to produce Ethanol, DDGS and corn oil in an efficient and quality manner."
http://bigriverresources.com/Volume%203%20Issue%203p.pdf

Apologies to the entire Leinenkugel's Family, but its past 5pm on a Friday and the SkunK was still researching stuff!!

SkunK

GreenShift Subsidiary Sues Cardinal Ethanol LLC For Patent Infringement

GreenShift Corporation (OTC Bulletin Board: GERS) today announced that its wholly-owned subsidiary, GS CleanTech Corporation (“GreenShift”), has commenced legal action in the United States District Court, Southern District of Indiana against Cardinal Ethanol, LLC for infringing on GreenShift’s U.S. patent covering corn oil extraction technology.

Rest Here:

http://www.greenshift.com/pdf/cardinal_infringement.pdf
AND READ THE MULTIPLE PAGES!

or
http://www.thestreet.com/story/10680607/1/greenshift-subsidiary-sues-cardinal-ethanol-llc-for-patent-infringement.html?cm_ven=GOOGLEFI


BIG NEWS!

You gotta read this part above. Hopefully it will get bigger if you click it - but the NEW NEWS here is our inventors disclosed the technology to ICM. ICM executed a Confidentiality Agreement with the Dave Winsness and bought two authorized systems from the inventors!!! WHoa! Do ya think that might have an effect on the proceedings???? I am guessing it might!(page 22 of the 51 pages in the PDF file)

Apparently the Patent Office heard and rejected ICM's claims of "Prior Art". The patent examiner had ICM's arguments prior to issuing the patent. Does this information make the Patent more secure in the normal investor's mind? Well, I have never been called "normal" lol, but it does appear to secure the patent from any "prior art**" argument from ICM!**Definition: Prior art is all information that has been disclosed to the public in any form about an invention before a given date. Prior art includes things like any patents related to your invention, any published articles about your invention, and any public demonstrations. Patent law states "On taking up an application for examination or a patent in a reexamination proceeding, the examiner shall make a thorough study thereof and shall make a thorough investigation of the available prior art relating to the subject matter of the claimed invention." This means that prior art could disqualify your application for a patent.
SkunK

Thursday, February 11, 2010

Another Important Presentation for Dave Winsness

Who even knew their was an American Oil Chemists' Society? I guess they have been around for over a hundred years, but I never had the occasion to cross paths . . .

http://www.aocs.org/meetings/annual_mtg/content/AM10-RBw.pdf

Do a search in this PDF for winsness and you will see that Dave Winsness will be busy in May giving a presentation - on a Monday afternoon. Hope they don't have a big lunch . . .

"Corn Ethanol Backend Fractionation: The Solution
is in Solution. D. Winsness, GreenShift Corporation, USA. "

SkunK



New Patent Application


One purpose of the Algae push is to produce usable Lipids (fats/oils) by using light, co2 and fertilizer. What if one could eliminate the need for light? Eliminate the need for new equipment and work a new function right into the current Ethanol Industry?? Use a secondary fermentation phase. Use a different yeast type (False yeast fungus (Rhodotorula glutinis) that protects itself from light by developing a red crust, produces lipids like algae without all the hassle and expense. On a level the SkunK can understand - is this what the patent application below proposes? More speculation at the end of this blog. . .

If you go to the Official US Patent Application search page and enter "winsness" in the term 1 search query. You will find a new patent application here:
http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PG01&s1=winsness&OS=winsness&RS=winsness

and you can also find it here:
http://www.faqs.org/patents/app/20100028484

This is dated February 4, 2010! This sounds like quite a unique way to increase yields at Ethanol Plants. ". . . yields greater than the theoretical mass of lipids of the grains itself. . ." Are we also on the cutting edge here? SkunK is still reading through this . . .
***********
"Methods for producing a lipid rich product from a feedstock utilized in wet and dry milling processes for producing ethanol, the method include mixing a culture of lipid producing microorganisms with the feedstock, wherein the feedstock includes co-products of ethanol production and/or biomass; producing lipids within the lipid producing microorganisms; lysing the microorganisms; and isolating the lipid rich product.
***********
6. The method of claim 5, wherein the fermentation step comprises mixing the lipid producing microorganisms with a fraction to produce a lipid rich product.

7. The method of claim 1, further comprising conditioning the feedstock prior to mixing the culture of the lipid producing microorganism with the feedstock.

8. The method of claim 7, wherein the conditioning comprises steam explosion, autohydrolysis, ammonia fiber expansion, acid hydrolysis, ultrasonication, irradiation (for example, with microwave bombardment, or directed electromagnetic stimulation), hydrodynamic shock, cavitation, enzymatic conditioning, or combinations thereof.

**********
"The lipid producing microorganisms consume and convert the non-ethanol co-products of to lipids. In this manner, yields greater than the theoretical mass of lipids of the grains itself can be obtained by conversion of the non-ethanol co-product from the respective milling process. Advantageously, and as will be discussed herein, the introduction of the lipid microorganisms can utilize the existing infrastructure utilized in ethanol production facilities so as to make the process commercially viable. No significant equipment and/or capital costs are needed to integrate the introduction of the lipid producing microorganisms in the dry, wet or fractionated milling processes. The production of additional lipids from within the existing co-products and recovery of these lipids further increases the output on a per bushel of feedstock basis while decreasing the energy consumption to produce a given volume of fuel."

Like this fish I found in a Japanese Fish market, sometimes you just need a picture to really grasp it. You don't "have" to eat it, but its fun to look. The SkunK put the pictures/diagrams on google docs below:p.2 http://docs.google.com/leaf?id=0B_ch8gAs4lCcMGM4NThiYWItNjk2MS00ZDZjLWJiYTgtMTMwMTAxN2JkN2Fl&hl=en

p.3 http://docs.google.com/leaf?id=0B_ch8gAs4lCcZTYzYTc4NTQtNjM4YS00Mjk0LTk0MmMtMTJkYmEyMTU1YzQ1&hl=en


****************
Notice: In the patent - lipid producing microorganisms comprise "Rhodotorula glutinis"
Notice the Secondary Fermentation Phase in the above diagrams.
Note this abstract in the African Journal of Biotechnology from 2007 the SkunK found:
****************
ABSTRACT

This study explored a strategy to convert agricultural and forestry residues into microbial lipid, which could be further transformed into biodiesel. Among the 250 yeast strains screened for xylose assimilating capacity, eight oleaginous yeasts were selected by Sudan Black B test. The lipid content of these 8 strains was determined by soxhlet extraction method. One strain (T216) was found to produce lipids up to 36.6%, and it was identified as Rhodotorula glutinis. The optimal fermentation conditions were obtained as follows: glucose as carbon source 100 g/L; yeast extract and peptone as nitrogen sources at, respectively, 8 and 3 g/L; initial pH of 5.0; inoculation volume of 5%; temperature at 28oC, shaking speed of 180 r/min, cultivated for 96 h. Under these conditions, R. glutinis accumulated lipids up to 49.25% on a cellular biomass basis and the corresponding lipid productivity reached 14.66 g/L. Experiments with a 5-L bioreactor under the optimal culture conditions showed that R. glutinis accumulated lipids up to 60.69%, resulting in 23.41 g/L in lipid productivity. More encouraging results were observed for the lipid production with alternative carbon sources. Corn stalk and Populus euramevicana leaves hydrolysate could be used to substitute glucose. Chemical analysis indicated that biodiesel obtained by transesterification possessed similar composition to that from vegetable oil, one of the widely used feedstock for biodiesel.


A conclusion:
In this study, we proposed a technology that has potential to greatly reduce the price of lipid production, which can be used to produce biodiesel and therefore relieve the potential damage of energy crisis. We are optimistic for biodiesel production from lignocellulosic materials although it appears not feasible today.
http://www.bioline.org.br/request?jb07378
**************************
DID GERS and their engineers manage to solve this? Is it feasible today? Hopefully we will hear more about this soon. We will see. . .

SkunK

EXTRA:
GreenShift Mention in March Ethanol Producer Mag:http://ethanolproducer.com/article.jsp?article_id=6359

Monday, February 8, 2010

Corn Oil Extraction Technology Leads Energy and Carbon Shift for Ethanol Industry

Corn Oil Extraction Technology

GreenShift’s patented corn oil extraction technologies enable GreenShift and its licensees to “drill” into the backend of first generation corn ethanol plants to tap into an existing reserve of inedible crude corn oil that has been historically trapped in the distillers grain co-product of ethanol production. This corn oil 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, increasing ethanol plant profits, and reducing lifecycle greenhouse gas (GHG) emissions.

Key Highlights of EPA’s Regulatory Impact Analysis

•Reduced Carbon – According to the EPA’s analysis, use of corn oil extraction is expected to reduce lifecycle GHG emissions of corn ethanol by about 18%, or by about 4.5 million tons per year of carbon industry-wide at the EPA’s estimated 70% penetration rate, the highest reduction of any of the advanced technologies cited by the EPA.


•Reduced Energy – Since corn oil is an insulator, removing it improves the heating efficiency and reduces the energy demand of corn ethanol. The EPA projected reductions in thermal energy use of 5.4% due to use of corn oil extraction technology. While GreenShift believes the energy savings are substantially greater, the EPA’s estimate corresponds to industry-wide savings of about $160 million per year at current market prices at the 70% penetration rate projected by the EPA.


•Increased Profitability – Use of corn oil extraction increases co-product revenues in addition to reducing production costs. The EPA estimated that ethanol producers using backend corn oil extraction technology can increase their profit by about $0.079 per gallon of ethanol produced.

•Compliance with RFS2 – The EPA concluded that “based on our final rulemaking analysis we have found that corn ethanol, including advanced technologies such as corn oil extraction/fractionation, reduces GHG emissions by more than the 20% threshold required for renewable fuels.”
•Vital New Biofuel Feedstock – The EPA estimated corn oil will be “a significant contributor to the biodiesel volume required by the RFS2 rule,” projecting that “low-grade corn oil extracted from dry mill ethanol production” will be used in 2022 to supply feedstock for 40% of the total annual U.S. output of biodiesel. This equates to 680,000,000 gallons or about 5.2 billion pounds per year of inedible corn oil feedstock with a current market price of about $0.25 per pound.
“The existing corn ethanol complex is the bedrock of America’s renewable fuels industry; it presents a practical pathway to increase America’s production and use of renewable fuels, while providing important opportunities to quicken our economic recovery and strengthen our national security,” said Kevin Kreisler, GreenShift’s chairman and chief executive officer. “We were very pleased to see the RFS2 emphasize this while underscoring the catalytic role of advanced new technologies such as our patented corn oil extraction technologies.”

“GreenShift’s patented backend corn oil extraction technologies are proven to deliver increased profit, reduced energy costs, a smaller carbon footprint, and lower risk to ethanol producers,” added Kreisler. “The recognition and affirmation of these benefits by the EPA is both humbling and extremely exciting. We have several years and many tens of millions of dollars invested into the development of these technologies, and we look forward to earning a return on that investment for our shareholders as we work to integrate our extraction technologies into the majority of the ethanol industry as quickly as possible.”


REST Here:
http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100208006406&newsLang=en
http://www.earthtimes.org/articles/show/corn-oil-extraction-technology-leads,1155202.shtml

It starts.

SkunK

GERS Web Site Update

The Greenshift web site now features the

US EPA RFS2
Regulatory Impact Analysis
on its Home page
http://www.greenshift.com/

If you go to Investor Resources: Presentations and Reports, both the

US EPA RFS2
Regulatory Impact Analysis
and the

US EPA RFS2
Summary and Analysis of Comments
are featured.

http://www.greenshift.com/investors.php?mode=1

If you search for "Greenshift", "corn oil extraction" and "corn oil", one at a time, you will be reading results for a while . . .

SkunK

Sunday, February 7, 2010

Just How BIG is This?

Just to let you know the SkunK is back in snow country. And sorry, but I will continue to work some travel pictures into the blog for a while. Three weeks and some days? Did I get the day back that I lost? How did that happen? - never mind. Please excuse if I missed or was tardy on an Email or two or three. JAL is still flying and making long flights as pleasant as possible. I got a surprise or two on my return - more on that later.
I thought I would show two charts that sort of put things in perspective. In the first one can see that COES add nearly eight cents in profit, more than any other new technology out there except for front end fractionation. Of course that has to be originally built into the plant, produces edible corn oil - no biodiesel feedstock - and has a huge initial capital cost. Of the new technologies - this clearly points to COES.

This second table shows the weighted cost impact on the industry of choosing COES. Both tables are here: http://www.epa.gov/OMS/renewablefuels/420r10006.pdf
Do you think Ethanol Plants are worried about reducing costs per gallon? Only the ones that plan to stay in business. The COES score of -$0.055 accounts for about 60% of the total savings in new technologies projected over the next 12 years for the Ethanol Industry. Does this project COES to be a major player? Essential.
These charts are (of course) graphic. It is very easy to see the huge effect COES are projected to have on the Ethanol Industry and the Industry's ability to achieve its mandates. However these are not small islands in an ocean of unrelated information. The COES are featured many times concerning Ethanol and also as THE feed stock that allows the BioDiesel Industry to make its goals:

"By 2022, it is estimated that corn oil from extraction is a significant contributor to the biodiesel volume required by the RFS2 rule." p. 10-3
http://www.epa.gov/OMS/renewablefuels/420r10003.pdf
The question investors have is the rest of the industry going to notice what the SkunK is already saying? Lots of full-time pundits from coast to coast, for both the Ethanol and BioDiesel Industries are paid to notice such things and report on them. I suspect this will happen over the next 30 days. I expect light bulbs are finally coming on all over the country about now. Will this report finally bring our GreenShift "good things to life?" Good Golly I hope so!SkunK

Friday, February 5, 2010

PPS Estimate by the EPA?

So did the EPA, in its Renewable Fuel Standard Program (RFS2) Regulatory Impact Analysis, make an estimate of how much GERS may be worth? No, not exactly. They did however estimate how much corn oil will be extracted in 2022 - 12 years away. If we figure in Greenshift patents being air tight and the new 20% licensing model, we may have a legitimate predictive revenue model:

"FASOM estimates that an additional 2 million tons of soybean oil is used to produce soybean biodiesel in 2022, relative to the AEO2007 Reference Case. In addition, FASOM projects that an additional 17.5 million tons of non-food grade corn oil from the extraction process will be used for biodiesel production in 2022." p 892

[FASOM = Forestry and Agricultural Sector Optimization Model (USDA).]
http://www.epa.gov/OMS/renewablefuels/420r10006.pdf

***********
17.5Million tons x 2,000# = 35Billion pounds
35B /7.6# = 4,605,263,157 gallons/year of corn oil

REVISED NUMBERS HERE:
Now after further research, the SkunK also found this at the same link:

"Since it offers another stream of revenue from the corn flowing into ethanol plants, we assumed approximately 70 percent of projected total ethanol production will implement some type of corn oil extraction system by 2022, generating approximately 680 million gallons per year of corn oil biofuel feedstock." p.56

In an abundance of caution, lets go with 680M gallons - the lower number. Now most people think that the price of fuel will rise over time. However lets be conservative and just use the $1.75/gallon for corn oil valid today and leave out any inflation and energy value increases.

680M gallons x $1.75/gallons x 20% royalties = $238M net income

That is a revenue model (that in a dozen years and if these simple assumptions are met) will be generating nearly a quarter Billion dollars A YEAR for GreenShift. So who will GreenShift replace on the DOW?!? lol. I remember the first time I used a BILLION on this blog. Some nearly came unhinged. These are now based on Government EPA/USDA numbers. Sorry guys but I rechecked my math and the decimal points now all seem in the right place.

(net income)/(TotalOS) = diluted EPS
$238M / 5B = .0476

(PE) X (Diluted EPS) = (PPS)

25 X $.0476 =
$1.19 pps

Even if we grow to half our today's max 10B OS - That is .0476 a share in diluted earnings per share. With a higher range estimate of our present OS at 5B and at a PE ratio of 25 that gives us a non-inflationary adjusted estimate of $1.19 cents a share.

With a market cap of nearly 6B, a likely tightening of the OS will happen along the way to generate a NYSE/NASDAQ price/share of over $5. With a market cap that large, a 200M share float would support a $29.75 pps. These are Sci-Fi numbers! Sure, you can argue whether you think all the assumptions will come true, but somebody show me where my numbers are wrong.
*********
Believe me, there are a bunch of people also doing the industry math here. This is not a little thing. This is not going away.

Do you see the small stone near the top, in the middle on the temple gate? (myoujin torii 明神鳥居). That is the "gakuzuka" or "GERS stone" between both the Ethanol and BioDiesel Industry. It takes GERS COES to make the Ethanol Industry compliant with the 20% standard. It takes those same COES to produce enough feedstock to achieve the mandates for the BioDiesel Industry.

Once in place, everything leans on this GERS Stone and it holds the whole thing together. . . for a long time. . .

SkunK

*********
Assumptions
1. 2000# = 1 ton
2. 7.6# = 1 gallon of corn oil
3. GERS patents are air tight
4. EPA/RFS2 lowest corn oil estimate is correct for 2022.

5. 20% Royalties are enforced on all corn oil extracted
6. P/E ratio of 25 (Thats double todays Dow stock's P/E ave of about 12-13)
7. Float of 5B shares of a present 10B max)
8. $1.75/gallon of corn oil

a. Gate Parts in English
http://www.instructables.com/id/Construct-a-Japanese-Torii-Gate-for-Your-Garden/step1/Torii-Components/
 
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