Here are some tidbits - search for "corn oil" [edit, find on this page] then you can scan for all these quotes: SEE HERE
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The Company sold approximately 5.0 million pounds of corn oil in the fourth quarter of 2010.
In July 2010, Green Plains announced plans to implement corn oil extraction technology at its ethanol plants. At the end of 2010, Green Plains had installed the technology at two plants and recently completed the installation at a third plant. The Company expects to complete the technology deployment by the end of second quarter 2011.
“As we grow, we are keenly focused on the diversification of our cash flows. Implementation of corn oil extraction at our plants is a prime example of this strategy. We expect to have all of our ethanol plants producing corn oil by the end of the second quarter of this year. Once fully implemented, this project has the potential to produce more than 100 million pounds of corn oil and generate incremental operating income in excess of $30 million annually, based on current market prices,” Becker commented. “We expect to generate at least $50 million of total operating income annually from corn oil production, our agribusiness operations, and marketing, blending and distribution activities.”
Operating Segment Information
Green Plains’ operating segments are as follows: (1) production of ethanol and related distillers grains, collectively referred to as ethanol production, (2) grain warehousing and marketing, as well as sales and related services of agronomy and petroleum products, collectively referred to as agribusiness, and (3) production and sales of corn oil, along with the marketing and distribution of Company-produced and third-party ethanol and distillers grains, collectively referred to as marketing and distribution. Selling, general and administrative expenses, primarily consisting of compensation of corporate employees, professional fees and overhead costs not directly related to a specific operating segment are reflected in the table below as corporate activities.
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SkunK
Thursday, March 3, 2011
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2 comments:
Conventional crude oil production has already peaked (according to IEA), unrest in the mid-east, and rising demand from developing nations. How long until we see much higher ethanol blends? Even though corn ethanol is inefficient, any increase to ethanol demand and corn prices (even marginal), will push up the worth of corn and thereby corn oil. Are we on a precipice of really taking off?
It seems to me, with EPA approval of E15 use for cars grom 2001 to present, as well as testing prior to 2001, it won't be long, and EPA will mandate E15 in all gasoline. I have read that with a 50% increase in ethanol demand, current facilities could not keep up with demand. Since corn oil is a byproduct from ethanol production, that means even more royalties to gers. Yet another long-term reason why this stock will do well. As long as common survives, we'll all be fine. just my 2 cents
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