Here is the January 2012 Valero Presentation for Investors. They even filed an 8-K for it. More perspective? It will be presented to 2012 Deutsche Bank Refining Conference. Simple Fact: Europeans - and especially Germans - love biodiesel. That makes what is not in the presentation even more remarkable!
Ethanol/Corn is mentioned on pages 3, 17, 22, 25, 32. A few of those places could have mentioned Corn Oil but did not. The most obvious is from page three below:
Waste Cooking Oil? Really? You mention waste Cooking Oil and not brag about your Corn Oil Extraction Package??? With the 1.1B ethanol capacity we are talking about 33.3M gallons of Corn Oil. At $3 a gallon that is $100M in potential lost revenues?? But they mention waste cooking oil?? Surely that project is a tiny fraction of what corn oil offers. No mention of corn oil in the current January 2012 presentation. One can only conclude that something is not going according to the plans made in the ICM/Valareo presser from last year.
May get update HERE
SkunK
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4 comments:
Thanks Skunk...here is what I think Valero decided to move on instead...looks like their new venture that sits this:
Mascoma and Valero Establish Joint Venture for Commercial-Scale Hardwood Cellulosic Ethanol Facility in Kinross, Michigan
Link:
http://www.flagshipventures.com/about/news/mascoma-and-valero-establish-joint-venture-commercial-scale-hardwood-cellulosic-ethanol-f
Without COES they will still lose the valuable $80,000,000 per year worth of corn oil that will remain unextracted. $20,000,000 to GERS in the 20% royalty. I think they are looking for any possible way to extract without paying a royalty. If not they know they will have to license. It would not make sense for them to throw earnings away by not installing, or installing without licensing which would only set them up for an infringement lawsuit where they would end up being forced to pay damages and license or shut down. Shutting down, and paying a patent infringement settlement would all be a waste of money and time. So the right choice would be for Valero to install and license with GreenShift. I think they should go with GreenShifts Alfa Laval equipment like ABE, Sunoco, etc... Or even Method 2. Since ICM's AOS patent application is being rejected.
Also I noticed the $3.00 corn oil price being used by some here. Sounds good to me, but last GERS report told us it was $2.80. Did it go back up?
Valero and others must know that without COES money is slipping right out their systems, wasted. $80,000,000 a year lost, like animals ate it. So time is money here and the sooner they install the sooner that money can be captured. Just install legal licensed COES systems that pay for themselves in about 6 months ROI and enjoy many years ahead of adding $80,000,000 per year.
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