The interactive map above can be seen here.
June 6th 3:30-5:00 PM
Track 3: Coproducts & Product DiversificationRoom 200B, Level 2
Maintaining Coproduct Value while Simultaneously Capturing the Financial Benefits of Corn Oil Extraction
Maintaining Coproduct Value while Simultaneously Capturing the Financial Benefits of Corn Oil Extraction
- Moderator: Paula Emberland, Business Analyst, Christianson & Associates PLLP
- David Winsness, Chief Technology Officer, GreenShift Corporation
Corn Oil Extraction: The True Impact on DDG Values - Pete Moss, Vice President, Marketing
Cereal Process Technologies, Fractionation: Optimizing Feed Market Options - Tara Vigil, Vice President, KATZEN International Inc.
Coproduct and Product Distinction: Carving out a Niche through Process Design and Operations - Joseph Riley, General Manager, FEC Solutions
Developing Long-Term Value for Extracted Corn Oil
Posts
4 comments:
PEIX "Very Focused On Implementing Corn Oil"
PEIX is a potential Greenshift customer.
Calgren is currently the only producer of corn oil in the state of California and is licensed with Greenshift's method II. Calgren decided to remove ICM's infringing Tricanter junkbox knock-off do to the design flaws and very low yields. They replaced the illegal system with an Alfa-Laval from Greenshift.
From the PEIX Q112 CC...
"The advantages of doing that (corn oil)are very strong, particularly in our markets where corn oil has an even higher value then it does in the midwest. It can have a very significant beneficial impact to our financial performance and we are very focused on implementing that this year"
6:00
"We're looking to furthur improve operations to both increase yield and reduce production costs. We're moving to broaden our revenue streams through production and additional co-products."
"We're making strong progress on our objectives and look forward to updating you in the near future."
8:30
"Finally, we look to furthur diversify our revenue streams with additional coproducts. We are currently evaluating opportunities for implimenting corn oil seperation at the plants."
Question 21:10
"On corn oil, do you feel you'll be producing corn oil before the end of this year?
Answer 21:20
"That is our intention. We are very focused on that and are trying to put in place the right pathway to make that a reality at one or more of our plants this year. The advantages of doing that are very strong, particularly in our markets where corn oil has an even higher value then it does in the midwest. It can have a very significant beneficial impact to our financial performance and we are very focused on implementing that this year."
http://www.shareholder.com/visitors/event/build2/mediapresentation.cfm?companyid=PEIX&mediaid=53501&mediauserid=6192828&TID=1865238457:62e00ce11797f533a017f65c775ee251&popupcheck=0&shexp=201205111110&shkey=2551ac506e94a7221ba1afd936b4e602&player=1
In California, dairy cows are the main consumer of DDG's. Removing too much corn oil is much less of a concern when feeding the de-oiled DDG's to dairy cows. Producers want lower oil for these animals. I think that's why Calgren went with method II, in order to remove as much oil as possible. Corn oil in California sells for a premium compared to the midwest. I hope PEIX goes with GERS as chemicals from ICM's systems are very bad for dairy cows in particular
BIOF Q112 Conference Call Highlights
BIOF is one of GERS' largest customers. Cargill owns a large percentage of BIOF. Cargill supplies the corn and buys the ethanol from the BIOF plants, as well as other synergies. I'm very surprised how quickly BIOF ramped up the COES in the quarter, and I think they were too. Here's the corn oil comments from the CC.
"On the positive side, we began selling corn oil in the first quarter of 2012 which generated $2.7 million in revenues"
"Our plan was to focus on yield and co-product returns and specifically on getting our corn oil extraction systems fully on-stream while continuing to be disciplined on costs and operating safely."
"Our corn oil system commissioning began at the end of December in our Nebraska plant and about a month later in our Minnesota facility. During the quarter, both systems were successfully commissioned with very few issues."
"Revenue contribution for the quarter from corn oil was $2.7 million and we estimate this represents about a 67% rate over the quarter for full production compared to what we expect to realize."
"We'll see yields at or above planned and pricing stable in the $.40 range during this quarter."
"In 2012, our plan is to remain focused on yield optimization and realizing the benefits of our co-product improvements over the full year. Of coarse we'll remain focused on cost and risk management which are foundations of our operating plan."
"I talked specifically about corn oil earlier and as Kelly noted we saw similar incremental contributions from distillers grain in the quarter."
"We saw a significant improvement in distillers during the quarter and a similar incremental contribution to what corn oil represents."
"Corn oil commissioning went very well, over all. During the quarter we were able to consistently meet yields of .5 pounds per bushel of corn at each location. This outcome was better than our commissioning plan. Our Minnesota start-up did kick off 2 weeks later than anticipated but this was intentional as we sought to leverage the lessons learned from our Nebraska experience."
"In the current quarter, we are working with our proprietary design and are beginning to trial additives to drive yields higher. We will be careful to maintain quality of both corn oil and other co-products."
"We'll seek ways to optimize yield and co-product recovery to realize the lowest possible production costs and maximize margins."
"Corn oil values have also been pretty steady despite pretty significant amounts of supply that's been coming online. We're selling to both biodiesel producers and increasingly gaining traction as a feed ingredient to the feed industry."
Question...
What's co-product return as a percentage of corn cost?
"23% or 27% with corn oil."
"Our plants have been registered for E-15 sales"
The replay can be heard by calling (866) 281-6782. Access code 167702.
Good Luck To All!$!$!$!$!$!$!$!$!$
Greenshift is not just a corn oil company.
I believe several of GERS' customers have implemented or are in the process of installing the next "hottest upgrade" in the industry.
I have a strong reason to believe the "Tornado Generator" or TAZ has been unleashed.
You guys will see what I'm talking about in the near future.
Good Luck To All!$!$!$!$!$
Great see they paid off the debt to BBI. It was a huge some of money.
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