UPDATE Piper Jaffray reports Corn Oil success by GPRE/Audio

This about GreenShift's largest customer:

The increased estimates reflect a relatively healthy 1Q and 4Q forward margin environment, the recent acquisition of 2 plants from Otter Tail (that we anticipate will be accretive to 2011 earnings), and an upbeat management presentation. Green Plains has also seen initial success in their testing of corn oil extraction technology and plans to roll out the extraction skids to 6 plants this year."

SEE ALL HERE

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The Green Plains web cast is available HERE.  The corn oil update is mostly between 10:00 and 12:30 minute mark into the file.  Thanks and a shout out to "slashnuts" for finding the link and his opinion/insight in the comment section below.

What I got was that two COES are done, one more will be done this month, the Global Ethanol Plants are having their (GreenShift licensed) COES upgraded.  All of their original six plants and the two former Global Ethanol Plants will be completed and running at full capacity by the start of the third quarter 2011 - in less than six months.

Green Plains always gives the impression that they are comfortable with the fact that it takes money to make money.  They do not think in half measures.  They have the capital AND the confidence to do it right the first time.  I would not be surprised to find that GreenPlains is the company referred to in recent presser HERE

After mentioning the possible/pending Otter Tail acquisition, Mr. Becker says:
     "We want to deploy corn oil extraction technology in all of our plants"

For those who predicted we may finally see a GreenShift COES at Otter Tail - you may be right!

Mr. Becker expected a year payback on the $18M investment in GreenShift COES patented technology.  He expected an $18-20M return the first year based on 20cent/pound corn oil.  We now see a double in the commodity to well over 40 cents/pound.  So now only a six month return? 

How many people would invest in a nearly automated business that would pay off the initial investment in six months - leaving you with a cash cow producing income with little production cost (actually saves on your utility bill if you dry DDGs and can be maintained by current support personnel.) and no debt to service? 

The question is no longer "Who can afford to invest in corn oil extraction?  The question in the ethanol industry is quickly becoming "Who can afford not to?"

SkunK