The new 10K for GRANITE FALLS ENERGY, LLC is out. They are located at 15045 Highway 23 SE, Granite Falls, MN 56241-0216
Corn Oil
"In May 2008 the corn oil extraction equipment we installed at our plant became operational. Corn oil is used primarily as a biodiesel feedstock and as a supplement for animal feed. Corn oil sales accounted for approximately 2.5% of our revenues during our fiscal years ended October 31, 2011 and 2010 and 1% for our fiscal year ended October 31, 2009." p. 5
Revenue for the fiscal year ended October 31, 2011. . . Corn oil sales $3,843,725 p.19
"During our 2010 fiscal year, we experienced an increase in the total pounds of corn oil we sold of approximately 5% compared to our 2009 fiscal year. We produced more corn oil during our 2010 fiscal year compared to our 2009 fiscal year due to increased functionality of the corn oil extraction equipment." p. 23
************************************
Dave Winsness and Veridium Corporation [GreenShift Ancestor] have at least a contract history with Granite Falls Energy.
In the past (2008) what they actually installed was called an "oil separator" system - instead of an "oil extraction" system - code to the SkunK that it is NOT a patented GreenShift "oil extraction" system.
"Subsequent to our fiscal quarter ended April 30, 2008, we completed the installation and start-up of our corn oil separation equipment at our ethanol plant and we are presently operating the new equipment. . . . . we expect the total cost of the oil separator system will be approximately $775,000."
Mr Fagen, through his company, is believed to own over 12% of Granite Falls Energy
Fagen Construction is also Headquartered in Granite Falls, Mn.
SkunK
Tuesday, January 31, 2012
Heron Lake [* * *] COES?
First a Letter to Heron Lake BioEnergy (HLBE) members
"Our restructure also has brought the opportunity to be able to install corn oil extraction in the plant in the near future. Corn oil extraction provides another revenue stream to the company, and will provide the plant with additional options to potentially increase our production by reduction of drying the removed oil thru our steam tube dryers which today are running at capacity.
We hope to have the corn oil system installed and operational by February 1st. The outside concrete infrastructure and containment has been installed prior to the onset of frost and the corn oil tank has been delivered and installed in the containment. At the present time, HLBE is researching corn oil contracts with various end users." P. 1 Here Heron Lake BioFuel Energy (HLBE)
***************
Then we go to their restructure HERE - the first thing you notice is this:
"CERTAIN INFORMATION INDICATED BY [ * * * ] HAS BEEN DELETED FROM THIS EXHIBIT AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2."
Then in the same document in the section on Intellectual Property we find this:
"Borrower has entered into a [ * * * ] with [ * * * ] dated August 19, 2011, under which [ * * * ] will deliver [ * * * ] equipment to the Project and provide a Technology Service Program over a 3-year term, during which term Borrower will use the [ * * * ] equipment [ * * * ], and at the end of which term Borrower will have the right to buy the equipment. [ * * * ] is the owner or authorized user of any intellectual property rights embodied or represented in the [ * * * ] equipment, provided Borrower shall not acquire any right whatsoever to any such intellectual property rights, and provided further that [ * * * ] have asserted certain patent rights as to claimed [ * * * ] technology against various manufacturers and users of [ * * * ] technology including [ * * * ]. There may be one or more patents issued to or licensed by [ * * * ] in conjunction with the [ * * * ] equipment to be used at the Project."
Borrower makes no representation or warranty to Lender and gives no opinion to Lender on whether use of the [ * * * ] equipment infringes upon any rights of [ * * * ] or as to the outcome of the [ * * * ] or as to any rights or remedies [ * * * ] may assert against Borrower. P. 58
And the price for the project?
10. Borrower has entered into a [ * * * ] Agreement with [ * * * ] dated August 19, 2011, under which [ * * * ] will deliver [ * * * ] equipment and provide a Technology Service Program over a 3-year term, Borrower will pay a monthly fee of $52,000 per month over the 3-year term, and at the end of which term Borrower will have the right to buy the equipment for $1.00. p. 61
Note: If we do the math the total price is 1,872,001. HERE shows a price of a non-GERS COES - 3 years ago at $2M.
************************
SkunK's Conclusion - [I want to hear your ideas in the comments!]
Heron Lake is going Corn Oil Extraction quickly and they are going to great length to hide the technology provider. I really do not know if it is GreenShift or someone else - but I think it is someone else. I thought it could be GreenShift, yet the price seems a bit low for a quality setup - and this wording below kind of speaks against it - suggesting this setup might infringe GreenShift??:
"Borrower makes no representation or warranty to Lender and gives no opinion to Lender on whether use of the [ * * * ] equipment infringes upon any rights of [ * * * ] or as to the outcome of the [ * * * ] or as to any rights or remedies [ * * * ] may assert against Borrower."
*******************
Want more complexity? Mr. and Mrs. Fagen of Fagan construction seem to own about 43% of HERON LAKE BIOENERGY, LLC through Project Viking LLC. Mr. Fagan is the President and CEO of Fagen, Inc. GreenShift and Fagen appear to have a complicated business relationship where they work together on building COES and where they face each other in court over the Platinum Ethanol contract.
*******************
One more Layer?? ICM built the Heron Lake plant.
*******************
Even Another Layer?? Heron Lake BioEnergy, LLC, Fagen, Inc and ICM, Inc. Enters Mutual Release and Settlement Agreement HERE
SkunK
"Our restructure also has brought the opportunity to be able to install corn oil extraction in the plant in the near future. Corn oil extraction provides another revenue stream to the company, and will provide the plant with additional options to potentially increase our production by reduction of drying the removed oil thru our steam tube dryers which today are running at capacity.
We hope to have the corn oil system installed and operational by February 1st. The outside concrete infrastructure and containment has been installed prior to the onset of frost and the corn oil tank has been delivered and installed in the containment. At the present time, HLBE is researching corn oil contracts with various end users." P. 1 Here Heron Lake BioFuel Energy (HLBE)
***************
Then we go to their restructure HERE - the first thing you notice is this:
"CERTAIN INFORMATION INDICATED BY [ * * * ] HAS BEEN DELETED FROM THIS EXHIBIT AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2."
Then in the same document in the section on Intellectual Property we find this:
"Borrower has entered into a [ * * * ] with [ * * * ] dated August 19, 2011, under which [ * * * ] will deliver [ * * * ] equipment to the Project and provide a Technology Service Program over a 3-year term, during which term Borrower will use the [ * * * ] equipment [ * * * ], and at the end of which term Borrower will have the right to buy the equipment. [ * * * ] is the owner or authorized user of any intellectual property rights embodied or represented in the [ * * * ] equipment, provided Borrower shall not acquire any right whatsoever to any such intellectual property rights, and provided further that [ * * * ] have asserted certain patent rights as to claimed [ * * * ] technology against various manufacturers and users of [ * * * ] technology including [ * * * ]. There may be one or more patents issued to or licensed by [ * * * ] in conjunction with the [ * * * ] equipment to be used at the Project."
Borrower makes no representation or warranty to Lender and gives no opinion to Lender on whether use of the [ * * * ] equipment infringes upon any rights of [ * * * ] or as to the outcome of the [ * * * ] or as to any rights or remedies [ * * * ] may assert against Borrower. P. 58
And the price for the project?
10. Borrower has entered into a [ * * * ] Agreement with [ * * * ] dated August 19, 2011, under which [ * * * ] will deliver [ * * * ] equipment and provide a Technology Service Program over a 3-year term, Borrower will pay a monthly fee of $52,000 per month over the 3-year term, and at the end of which term Borrower will have the right to buy the equipment for $1.00. p. 61
Note: If we do the math the total price is 1,872,001. HERE shows a price of a non-GERS COES - 3 years ago at $2M.
************************
SkunK's Conclusion - [I want to hear your ideas in the comments!]
Heron Lake is going Corn Oil Extraction quickly and they are going to great length to hide the technology provider. I really do not know if it is GreenShift or someone else - but I think it is someone else. I thought it could be GreenShift, yet the price seems a bit low for a quality setup - and this wording below kind of speaks against it - suggesting this setup might infringe GreenShift??:
"Borrower makes no representation or warranty to Lender and gives no opinion to Lender on whether use of the [ * * * ] equipment infringes upon any rights of [ * * * ] or as to the outcome of the [ * * * ] or as to any rights or remedies [ * * * ] may assert against Borrower."
*******************
Want more complexity? Mr. and Mrs. Fagen of Fagan construction seem to own about 43% of HERON LAKE BIOENERGY, LLC through Project Viking LLC. Mr. Fagan is the President and CEO of Fagen, Inc. GreenShift and Fagen appear to have a complicated business relationship where they work together on building COES and where they face each other in court over the Platinum Ethanol contract.
*******************
One more Layer?? ICM built the Heron Lake plant.
*******************
Even Another Layer?? Heron Lake BioEnergy, LLC, Fagen, Inc and ICM, Inc. Enters Mutual Release and Settlement Agreement HERE
SkunK
Sunday, January 29, 2012
. . . and other new systems
One of the things I like to do for kicks, is save the GreenShift PDF Quarterly reports as Microsoft word documents. Then after opening the older document, (2Q in this case) run the merge function with the newer document. (3Q) All of the changes between the two quarters are then highlighted in red. Of course all the numbers change - so that really does not interest me at this point - I already know that. I also try to look past the normal grammar housekeeping and see if anything significant has been slid in. Public companies have the duty to inform the public - but they do not have to circle new information in red if they are not ready to promote a new project beyond the necessary first customers. They can simply hide it in plain sight. Is that what we have here? You decide:
"In addition, future results may be improved by the impact of event-driven systems integration* contracts as we have recently experienced a significant increase in interest for our engineering and other services in connection with the design, construction, integration and modification of corn oil extraction systems and other new systems for new existing and prospective new licensees." 3Q p.27 . . . vs . . . 2Q p.25.
The underlined portion is what is new in the 3Q. The cross outs are what was in the 2Q but not the 3Q. The rest was in both. So what is ". . . other new systems" and why add it in the 3Q??? The "new systems" have to be something other than "corn oil extraction systems" because the need was felt to include the new language in the last quarterly! Therefore I do not believe it is Method I or Method II - which are both corn oil extraction methods already covered in the old language.
This is where it gets fun: "other new systems" Pure Speculation - but built on reasoning. Integral Refining (BioDiesel Plant with multiple co-products?) is my first guess since it is commercially available and is next on the list of our technologies in the last 10K. It might also be a process for Distillers Dried Solubles - it refines defatted syrup into new high value co-product - and was listed in Pilot Stage in the last 10K. Could it be ready for commercial production? Perhaps this will be answered in the shareholder letter? Or will any announcement await a successful performance? I have a brief outline (of my idea) of Intregral Refining below:
1. Co-located BioDiesel Plant/Integral Refining
GreenShift has the engineering, construction, management experience - and the patents to build continuous flow modular 5 and 10mmgy biodiesel plants adjacent to Ethanol plants. Since this is commercialized technology - ready for prime time - this would be my first guess. On the recent GreenShift video it is explained that the corn oil produced could be used to fuel the hundreds of trucks that supply the Ethanol Plant. With an Integral Refining facility that could literally make that happen. The Ethanol facility would capture not only the value of the corn oil, but also the value added as it is converted from corn oil to Biodiesel in a true multi-fuel refinery.
Located near a major road or traffic? Who will be the first facility to also integrate this multi-fuel refinery and an Ethanol AND Biodiesel retail outlet adjacent to their facility and capture the retail sale as well? How about a blender pump or two? All of those transportation costs NOT spent transporting feedstock and fuel - could be added to the Bio-Refinery's bottom line. Just like corn oil extraction - it may take a cowboy or two to cut a new trail through the brush before the herd takes notice of the green grass ahead.
Did he just say that???
Go back and listen to the video between 1:50 and 2:05 and hear Tony Beam, the Plant Manager of Advanced BioEnergy state:
"This corn oil extraction process now . . . gives us the ability to produce another fuel at this facility - of BioDiesel. We will produce 8 trucks a week . . . "
Did he just say that???
Go back and listen to the video between 1:50 and 2:05 and hear Tony Beam, the Plant Manager of Advanced BioEnergy state:
"This corn oil extraction process now . . . gives us the ability to produce another fuel at this facility - of BioDiesel. We will produce 8 trucks a week . . . "
********************************
Below is a list of technology, in order, from the last 10K
Method I Corn Oil Extraction
Extraction of corn oil from distillers grain – thin stillage
Commercially Available
Method II Corn Oil Extraction
Extraction of corn oil from distillers grain – whole stillage
Commercially Available
Integral Refining
Integrated refining upgrade for corn oil extraction systems
Commercially Available
Distillers Dried Solubles
Refines defatted syrup into new high value co-product
Pilot Stage
Method III Cellulosic Oil™
Oleaginous microbes convert biomass into lipids and protein
Bench Stage
Energy & Water Recovery
Energy recovery and water removal during evaporation
Bench Stage
Protein Recovery
Fractionates DDG into high and low protein products
Bench Stage
*********************
SkunK
PS
*The "event-driven systems" listed above in the 3Q quote may be software applications lingo? Event driven systems—applications and infrastructure built with event driven architecture. Since GreenShift has designed software to monitor and control the corn oil extraction systems, perhaps they are finding and solving other needs. Key people have computer talents. Any help from all you programmers?
*************
WASTED! Small quote from the 2010 10K
"The average prices of corn oil and distillers grain from 2005 to 2010 were about $0.22 and $0.06 per pound, respectively. At those prices, we estimate that the market value of the unrecovered oil that was sold with distillers grain between 2005 and 2010 was about $4.9 billion."
Saturday, January 28, 2012
"Billion"
The SkunK still remembers years ago - the flak he took whenever he used "Billion" and "GreenShift" in the same sentence. Well that sort of faded when GreenShift reached a Billion gallons of ethanol under contract for Corn Oil Extraction. That was well over a year ago. By all indications we are well over two Billion* now.
Now it is official: The Biodiesel industry smashed the Billion gallon mark for 2011 and is hungry for more.
The strong market for Biodiesel is the engine that drives the strong market for corn oil. That in turn drives the strong market for GreenShift's patented COES technology .
SEE ARTICLE HERE
SkunK
PS
*3Q p.26: Our business continues to improve. We won significant new business during 2011, increasing licensed penetration to more than 15% of the industry and more than doubling the amount of production licensed to use our extraction technologies from 1.0 billion gallons per year (“BGY”) at the end of 2010 to more than 2.0 BGY of ethanol production today.
2Q p.24: ". . . to more than about 1.9 BGY of ethanol production today."
Now it is official: The Biodiesel industry smashed the Billion gallon mark for 2011 and is hungry for more.
The strong market for Biodiesel is the engine that drives the strong market for corn oil. That in turn drives the strong market for GreenShift's patented COES technology .
SEE ARTICLE HERE
SkunK
PS
*3Q p.26: Our business continues to improve. We won significant new business during 2011, increasing licensed penetration to more than 15% of the industry and more than doubling the amount of production licensed to use our extraction technologies from 1.0 billion gallons per year (“BGY”) at the end of 2010 to more than 2.0 BGY of ethanol production today.
2Q p.24: ". . . to more than about 1.9 BGY of ethanol production today."
Reply in Support
Here is GreenShift's Reply in Support of an earlier motion.
This caught my eye "Daniel J. Lueders, ¶ 3 (describing himself as “a medical layperson"). Although I was unable to find out exactely what a "medical layperson" was, I found this listed among Mr. Lueders many other talents: advice regarding lawfully designing around patents
He must be very good at what he does, because if you google the part in red above, you will get millions of hits, but Mr. Lueders will come out on top - just below the google ads. I see he is also just above my blog post quote - geepers these Google bots are FAST!
SkunK
This caught my eye "Daniel J. Lueders, ¶ 3 (describing himself as “a medical layperson"). Although I was unable to find out exactely what a "medical layperson" was, I found this listed among Mr. Lueders many other talents: advice regarding lawfully designing around patents
He must be very good at what he does, because if you google the part in red above, you will get millions of hits, but Mr. Lueders will come out on top - just below the google ads. I see he is also just above my blog post quote - geepers these Google bots are FAST!
SkunK
MAX update
Here is some old MAX link HERE if you are interested.
This is a old lawsuit from a previous seed crushing plant in Montana that has reappeared.
Motion to Dismiss HERE
Case to Dismiss HERE
I think it was a nice use of term "far-fetched" on page 8 - you just do not get that many chances to use that term - so correctly - in a legal brief. A simular Montana complaint was dismissed in January 2010. The New York court granted GS AgriFuels’ March 2010 motion for summary judgment as to liability on GS AgriFuels’ fraud and breach of contract claims on April 8, 2010.
At first I thought it was a reply to the Yahoo Board Sea Lawyers. :~)
JMHO
SkunK
This is a old lawsuit from a previous seed crushing plant in Montana that has reappeared.
Motion to Dismiss HERE
Case to Dismiss HERE
I think it was a nice use of term "far-fetched" on page 8 - you just do not get that many chances to use that term - so correctly - in a legal brief. A simular Montana complaint was dismissed in January 2010. The New York court granted GS AgriFuels’ March 2010 motion for summary judgment as to liability on GS AgriFuels’ fraud and breach of contract claims on April 8, 2010.
At first I thought it was a reply to the Yahoo Board Sea Lawyers. :~)
JMHO
SkunK
Thursday, January 26, 2012
Picking up Speed
Trend toward DDG corn oil extraction is picking up speed
January 26, 2012 By Ken Anderson - ENTIRE ARTICLE HERE
More and more ethanol producers are starting to extract some of the corn oil from their distiller grains.*
At the recent Iowa Renewable Fuels Summit in Des Moines, the director of ethanol services for the Omaha-based Gavilon Group—Randy Ives—discussed the trend towards corn oil extraction. (Gavilon is one of the largest marketers of distillers grains in the U.S. markets.)
LISTEN TO Randy Ives
His prediction made at the IOWA Renewable Fuels Summit - (that I had reported on Tuesday) - of the 200 plants - 105 will be extracting corn oil by summer. That is 60% of capacity! By this summer!
SkunK
PS *I think most of us GreenShifters know that the corn oil does not get "extracted from ddgs." Rather it gets extracted from the whole stilage and, in the process, less corn oil ends up in the Dried Distillers Grains. HERE DAVE WINSNESS, the CTO of GreenShift and the inventor of the process has a few words to say on exactly those points in an older interview.
January 26, 2012 By Ken Anderson - ENTIRE ARTICLE HERE
More and more ethanol producers are starting to extract some of the corn oil from their distiller grains.*
At the recent Iowa Renewable Fuels Summit in Des Moines, the director of ethanol services for the Omaha-based Gavilon Group—Randy Ives—discussed the trend towards corn oil extraction. (Gavilon is one of the largest marketers of distillers grains in the U.S. markets.)
LISTEN TO Randy Ives
His prediction made at the IOWA Renewable Fuels Summit - (that I had reported on Tuesday) - of the 200 plants - 105 will be extracting corn oil by summer. That is 60% of capacity! By this summer!
SkunK
PS *I think most of us GreenShifters know that the corn oil does not get "extracted from ddgs." Rather it gets extracted from the whole stilage and, in the process, less corn oil ends up in the Dried Distillers Grains. HERE DAVE WINSNESS, the CTO of GreenShift and the inventor of the process has a few words to say on exactly those points in an older interview.
Nice Corn Oil Site
Marquis Energy produces millions of gallons of crude corn oil which is supplied to various feed markets and biodiesel facilities each year. The corn oil is extracted from various process streams within the biorefinery, using a mixture of innovative and sophisticated technologies. By maintaining precision control of extraction equipment, and using the newest enzymes, Marquis can extract unparalleled volumes of crude corn oil out of our facilities. The extraction of this valuable product further diversifies the income potential for Marquis' biorefineries, while maximizing the value of the corn feedstock. There is also a reduction in global greenhouse gas production.
SEE HERE
One YEAR AGO
Marquis WI/GreenShift PR
SEE HERE
One YEAR AGO
Marquis WI/GreenShift PR
Tuesday, January 24, 2012
Corn Oil Advancements
"At least" half of the industry extracting corn oil "within the next couple years," Seems like every estimate gets a shorter time frame. When enough industry leaders take the risk and are making money doing something . . . the tipping point is reached and the herd will then move in mass to do it quickly. I believe that tipping point has been reached, the herd is on the move. The SkunK believes more than 90% of the corn ethanol industry will be extracting corn oil within 24 months. The biggest challenges (Both WILL be solved because it is profitable to do so) are the lead time on key parts - and the ongoing patent litigation.
(Note: The patent litigation is only a problem for those who choose to use - but not license - a patented process)
This excerpt above from the "just out" Jan/Feb Issue of BioDiesel Magazine page 32. Thanks to kimbrowntxselect on I-Hub for the good DD and the link.
SkunK
Iowa Renewable Fuels Summit
The 6th Annual Iowa Renewable Fuels Summit opens today. No word on if GreenShift will be represented. Corn oil, as a cheap, growing biodiesel feedstock has helped regenerate that industry so I am sure that will be a hot topic at least among the attendees. Any comments from those in attendance would be very welcome. Thanks!
SkunK
SkunK
Monday, January 23, 2012
God Bless anybody who wants to use that Prevost Method
For a long time I read about Prevost in the Defendat's Filings. Prevost was some kind of big deal that the Defendant's were all depending on. The storyline goes something like this: Somehow the Patent Examiners were asleep at the wheel and GreenShift had talked their way into a whole family of patents. When this thing got before a judge, the defendants would all be exonerated of infringement - mostly, if not all due to Prevost.
Now I find out Prevost wasn't even a patent. It was a patent application. It processed something that is described as a powder. It used solvents. It really was not the same as the Greenshift family of COES patents. It could hardly be used to invalidate the GreenShift patents as obvious. The judge called [at least a significant portion, if not the basis] of the defendant's position on Prevost ". . . completely without support . . . "
Here are some points made by the GreenShift lawyer:
". . . what's claimed in Prevost is a substance that is 15 percent or less. That's described as a free-flowing powder, not a syrup, not some other substance; and that's why they use solvent extraction. Again, God bless anybody who wants to use that Prevost method . . ."
"But a fundamental distinction is that Prevost is under 15 percent water. All of the claims here are more than 30 percent or there's some other fundamental distinction. So that's an important distinction, and that's what hadn't been done in the past was that the grains have been reduced -- the thin stillage have been reduced by evaporation or by concentration to somewhere in that sweet spot that is claimed within this patent; and I submit that all of the defendants are within that range, not practicing Prevost." Markman Transcript p. 127-128
*******************
After reading the arguments in the transcript these words from the Court ring even clearer in the actual Markman ruling from last fall:
"The Court disagrees with Defendants’ characterization of the ‘858 patent’s prosecution history. The Court could not find any statements in the prosecution history to indicate that Applicants limited their methods to the recovery of oil alone, free from water and solids. Indeed, Applicants do distinguish their claimed methods from Prevost, but they do so explicitly on the grounds that their claimed method teaches a post-evaporation process for recovering oil from the concentrate using heat and mechanical processing."
"Defendants’ assumptions regarding the grounds on which Applicants distinguished from Prevost are completely without support in the record of the prosecution history." Markman ruling page 22-23
SkunK
PS (Inside Baseball) We finally got the "War Hero" reference made in a follow on filing explained.
This is to nobody in particular. So please let him know. Here is a new name that I recently entered on the right side of the blog listed under "Technicians and Magicians". No idea if related to Edward Carroll. Only two primary references in the public record, Here and (I am proud of this second one) HERE (do a find on "Carroll" and look at all the info in the second hit!)
Mary J. Carroll - Worked in GreenShift Administration since at least December of 2003. Presently GreenShift Vice President of Administration.
Now I find out Prevost wasn't even a patent. It was a patent application. It processed something that is described as a powder. It used solvents. It really was not the same as the Greenshift family of COES patents. It could hardly be used to invalidate the GreenShift patents as obvious. The judge called [at least a significant portion, if not the basis] of the defendant's position on Prevost ". . . completely without support . . . "
Here are some points made by the GreenShift lawyer:
". . . what's claimed in Prevost is a substance that is 15 percent or less. That's described as a free-flowing powder, not a syrup, not some other substance; and that's why they use solvent extraction. Again, God bless anybody who wants to use that Prevost method . . ."
"But a fundamental distinction is that Prevost is under 15 percent water. All of the claims here are more than 30 percent or there's some other fundamental distinction. So that's an important distinction, and that's what hadn't been done in the past was that the grains have been reduced -- the thin stillage have been reduced by evaporation or by concentration to somewhere in that sweet spot that is claimed within this patent; and I submit that all of the defendants are within that range, not practicing Prevost." Markman Transcript p. 127-128
*******************
After reading the arguments in the transcript these words from the Court ring even clearer in the actual Markman ruling from last fall:
"The Court disagrees with Defendants’ characterization of the ‘858 patent’s prosecution history. The Court could not find any statements in the prosecution history to indicate that Applicants limited their methods to the recovery of oil alone, free from water and solids. Indeed, Applicants do distinguish their claimed methods from Prevost, but they do so explicitly on the grounds that their claimed method teaches a post-evaporation process for recovering oil from the concentrate using heat and mechanical processing."
"Defendants’ assumptions regarding the grounds on which Applicants distinguished from Prevost are completely without support in the record of the prosecution history." Markman ruling page 22-23
SkunK
PS (Inside Baseball) We finally got the "War Hero" reference made in a follow on filing explained.
This is to nobody in particular. So please let him know. Here is a new name that I recently entered on the right side of the blog listed under "Technicians and Magicians". No idea if related to Edward Carroll. Only two primary references in the public record, Here and (I am proud of this second one) HERE (do a find on "Carroll" and look at all the info in the second hit!)
Mary J. Carroll - Worked in GreenShift Administration since at least December of 2003. Presently GreenShift Vice President of Administration.
Sunday, January 22, 2012
Markman Transcript
SEE HERE
After a 90 day waiting period the Markman transcript has now gone public. The transcript is 133 pages. This is starting to cut into my man money. If we ever meet at a future GreenShift Investor's Reunion I had better not have to pay for any drinks . . . :~)
***********************
"They initially had a business arrangement with one of the defendants, ICM, a marketing agreement. Ultimately, as time passed, they split apart; and ICM just continued on selling these systems and products long before the patent ultimately issued, probably either taking the chance that the patent wasn't going to issue or that they thought that it was so simple that it had to be invalid. One way or another, they kept practicing the technology that had been given to them by GreenShift."
***********************
Allow the SkunK to go Aztec for a second and pull out the beating heart of the GreenShift argument:
"The only requirement is that after concentrating and mechanically processing, you recover oil."
p.32, line 4,5
**************************
I like this:
"Your Honor, one thing to remember about Prevost is the Prevost reference is a patent application. It never became a patent. It's not practiced out there. Nobody is practicing Prevost. Prevost is a red herring." p.38
***********************
SkunK
As a reminder - here is the Markman Order that came out of the hearing above and prior filings
After a 90 day waiting period the Markman transcript has now gone public. The transcript is 133 pages. This is starting to cut into my man money. If we ever meet at a future GreenShift Investor's Reunion I had better not have to pay for any drinks . . . :~)
***********************
"They initially had a business arrangement with one of the defendants, ICM, a marketing agreement. Ultimately, as time passed, they split apart; and ICM just continued on selling these systems and products long before the patent ultimately issued, probably either taking the chance that the patent wasn't going to issue or that they thought that it was so simple that it had to be invalid. One way or another, they kept practicing the technology that had been given to them by GreenShift."
***********************
Allow the SkunK to go Aztec for a second and pull out the beating heart of the GreenShift argument:
"The only requirement is that after concentrating and mechanically processing, you recover oil."
p.32, line 4,5
**************************
I like this:
"Your Honor, one thing to remember about Prevost is the Prevost reference is a patent application. It never became a patent. It's not practiced out there. Nobody is practicing Prevost. Prevost is a red herring." p.38
***********************
SkunK
As a reminder - here is the Markman Order that came out of the hearing above and prior filings
TidBits
A. The 23 Jan meeting references on I-Hub are correct but appear not part of the MDL patent litigation. It is an Echo of the old Seed Crushing plant in Montana. SEE Court Doc HERE. There could be another MDL date so I will continue to look.
Interested in the Ol'Max details? START HERE and HERE
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B. GreenShift's Fiscal year is also the calender year. As per SEC rules GreenShift's 4Q is combined with its annual report and normally comes out in April. After the 3Q we hit a dry spell of required filings until the 10-K comes out. That is why the shareholder letters that normally come out in Mid January to Mid March are so welcome. OLIE77 pointed it out here. Although it is due end of March it also comes with an automatic 15 day extension. Dates for the 10-K for last 3 years were 1April, 14April, 16April.
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SkunK
Interested in the Ol'Max details? START HERE and HERE
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B. GreenShift's Fiscal year is also the calender year. As per SEC rules GreenShift's 4Q is combined with its annual report and normally comes out in April. After the 3Q we hit a dry spell of required filings until the 10-K comes out. That is why the shareholder letters that normally come out in Mid January to Mid March are so welcome. OLIE77 pointed it out here. Although it is due end of March it also comes with an automatic 15 day extension. Dates for the 10-K for last 3 years were 1April, 14April, 16April.
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SkunK
Saturday, January 21, 2012
These Dots are 15 Miles Apart
Here is a nice article in a local paper about a company just 15 miles north of GreenShift's Alpharetta Ga HQ. SEE HERE
I could find NO link to GreenShift but couldn't help but notice the proximity, external resemblance and modular trailer design to our algae prototype. GreenShift also had an Australian link at one time through the CEO of Global Ethanol and Officer of ESYM, Trevor Bourne. None of these coincidences justify any connection since this area north of Atlanta is a hot bed of innovation and Trevor Bourne has no know current connection to anything related to GreenShift or Algae Energy. And besides, I have been to Perth, Sydney and Darwin - Australia is a flippen HUGEmongous place lol. However, I would love to be updated on any changes to those assumptions! As the balance sheet improves over the next year or so this algae section (and Method III) will likely reawaken. Of course, its nice to try and stay ahead of the herd.OK, if you insist on some conspiratorial red meat :~) - read these two quotes from the article:
"Once algae is grown and harvested, it can be used to create oil. Another product is biomass, which can be used in burning, as in coal, and feedstock in cattle."
"We're being recognized by many companies around the world," McConchie said. "I can't really divulge too much information, but it's worldwide."
SkunK
More at this link
"The system uses retrofitted 40-foot shipping containers linked to solar light-capture arrays."
Parent Company Home Web Site
Friday, January 20, 2012
Satisfied Customer
This is a shareholder letter from Advanced BioEnergy released to its unit holders just before Christmas. It appears they are happy GreenShift customers.
"Additionally, we installed a corn oil extraction system at our plant in Fairmont, Nebraska. The corn oil extraction system installation went smoothly and performance and investment payback have exceeded our initial expectations. We are looking forward to the continued profitability the system will add to our Fairmont operations and ABE overall."
SEE HERE
SkunK
PS After I Googled pat of the quote above I see it was also earlier put in the comment section by a blog reader - Golddigger on Dec 29th 1:23PM. Thanks!
"Additionally, we installed a corn oil extraction system at our plant in Fairmont, Nebraska. The corn oil extraction system installation went smoothly and performance and investment payback have exceeded our initial expectations. We are looking forward to the continued profitability the system will add to our Fairmont operations and ABE overall."
SEE HERE
SkunK
PS After I Googled pat of the quote above I see it was also earlier put in the comment section by a blog reader - Golddigger on Dec 29th 1:23PM. Thanks!
Great Article
HERE is a great article on corn oil I missed. The link was posted on I-Hub by Gerrytheoptimist. Thanks for the DD. My jaw always drops when I see ideas pushed 5 years ago by GreenShift - like the co-location of modular biodiesel plants @ ethanol plants - regenerate as new, fresh ideas. It is especially funny when many in the industry ridiculed the same original GreenShift ideas that are becoming popular now.
Here is just one example from 2007?
SkunK
Here is just one example from 2007?
SkunK
Thursday, January 19, 2012
Trusted SOURCE! WOW!
I have a blog below on the same general subject - but that was just a summary. GreenShift is featured throughout this new link by the California ARB in 42 pages of detail. I will just include this short quote that supports my Method II theme today.
"GreenShift’s systems are of two types. Corn Oil Extraction 1 and 2 systems together can extract 60 to 70 percent of the corn oil passing through the plant, which translates to about six to seven gallons of corn oil per 100 gallons of ethanol produced. The results presented in this analysis are based on the operation of both corn oil extraction systems (1 and 2)." p.9
HERE is all the detail a Greenshifter could ever want . . .
SkunK
"GreenShift’s systems are of two types. Corn Oil Extraction 1 and 2 systems together can extract 60 to 70 percent of the corn oil passing through the plant, which translates to about six to seven gallons of corn oil per 100 gallons of ethanol produced. The results presented in this analysis are based on the operation of both corn oil extraction systems (1 and 2)." p.9
HERE is all the detail a Greenshifter could ever want . . .
SkunK
Trusted Source
I found this while looking for Calgren permit activity in the Golden State. No luck with that yet - but this is interesting material put out by the California Air Resources Board (ARB) two months ago:
See Here
"ARB staff’s estimate of the carbon intensity (CI) of corn oil biodiesel is based on information made available by Greenshift Inc.—a company that has commercialized a corn oil extraction process. Although Greenshift’s is not the only available extraction process, more information is publicly available on its process than is available on alternative systems."
"Under the Greenshift process, corn oil is removed from the DGS process stream through a combination of washing and centrifuging. The extracted corn oil is shipped to a biodiesel production plant where it is converted to fatty acid methylester (FAME) biodiesel using a transesterification process—the same process that is used to produce biodiesel from soy oil and other oil- and fat-based feedstocks."
"The equipment used to extract corn oil at corn ethanol plants consumes both thermal and electrical energy. This additional energy consumptions is more than offset, however, by energy savings realized during the DGS drying process. Energy is saved because the removal of corn oil both reduces the mass of the DGS entering the dryers, and improves the efficiency with which that DGS transfers heat. Based on information from Greenshift, ARB staff estimates that the production of corn oil at an ethanol plant reduces the net energy consumption of that plant by about nine percent.'
SkunK
PS A government agency gives kudos to GreenShift for its comparitive openess. That's news. ;~) Remember the US EPA used GreenShift throughout its RFS2 and also RFS2 HERE. (Last two links are big downloads)
See Here
"ARB staff’s estimate of the carbon intensity (CI) of corn oil biodiesel is based on information made available by Greenshift Inc.—a company that has commercialized a corn oil extraction process. Although Greenshift’s is not the only available extraction process, more information is publicly available on its process than is available on alternative systems."
"Under the Greenshift process, corn oil is removed from the DGS process stream through a combination of washing and centrifuging. The extracted corn oil is shipped to a biodiesel production plant where it is converted to fatty acid methylester (FAME) biodiesel using a transesterification process—the same process that is used to produce biodiesel from soy oil and other oil- and fat-based feedstocks."
"The equipment used to extract corn oil at corn ethanol plants consumes both thermal and electrical energy. This additional energy consumptions is more than offset, however, by energy savings realized during the DGS drying process. Energy is saved because the removal of corn oil both reduces the mass of the DGS entering the dryers, and improves the efficiency with which that DGS transfers heat. Based on information from Greenshift, ARB staff estimates that the production of corn oil at an ethanol plant reduces the net energy consumption of that plant by about nine percent.'
SkunK
PS A government agency gives kudos to GreenShift for its comparitive openess. That's news. ;~) Remember the US EPA used GreenShift throughout its RFS2 and also RFS2 HERE. (Last two links are big downloads)
New Patent Ap/Method II
I had reported on a new patent application yesterday, but with all the blogs/information flying around, I wanted to take a closer look today. Figure two is labeled Whole Stillage "Mechanical Separation".
"FIG. 2 is a partially schematic flow chart illustrating the recovery of oil from a syrup formed by evaporating the thin stillage;"*
"FIG. 11 is a schematic flow chart illustrating a technique and system for washing whole stillage to maximize oil recovery."* From the GERS web site: "The Method II process washes the whole stillage in a series of additional centrifuges upstream of the normal centrifugation stage of the ethanol plant."
These figures are all from a 50mmgy plant.
"FIG. 2 is a partially schematic flow chart illustrating the recovery of oil from a syrup formed by evaporating the thin stillage;"*
Here is the Application with much more Detail (has *quotes above)
What I can see here is the total corn oil value produced goes $102/hr to $426.45/hr - with a much smaller % increase in energy usage. Total product value shoots up over three times. Of course the capital outlay would be more initially. Here is a more detailed explanation of Method II from the GERS web site:
"The Method II process washes the whole stillage in a series of additional centrifuges upstream of the normal centrifugation stage of the ethanol plant. This causes the oil concentration in the centrate flow noted above to increase, which in turn increases the amount of oil extracted by the Method I process. Method I can extract up to about 3 gallons for every 100 gallons of ethanol produced. Method II can add another 3.5 gallons of corn oil for every 100 gallons of ethanol produced. We have other additional methods in development to increase these yields further."
Calgren/MethodII/3X$$$/RFS2
"In addition, Calgren has agreed to install GreenShift’s first Method II Corn Oil Extraction System to extract corn oil from Calgren’s whole stillage. With Method I (thin stillage extraction) and Method II (whole stillage extraction). GreenShift stated that corn oil yields that could be as high as 1.33 pounds per bushel and having at least one advanced technology as described in the final rule for the expanded RFS2 published by the U.S. Environmental Protection Agency on December 21, 2010." Remember Here
SkunK
My SkunK kingdom for a positive update from Calgren by anyone! OK, how about the back 40? Would you believe two chemical hand warmers and I'll shovel your driveway? lol
Wednesday, January 18, 2012
Just one SkunK's Opinion
This 30% estimate is nothing new. This language has been around since at least 2010.
"Over 30% of the U.S. ethanol industry is using GreenShift’s patented and patent-pending extraction technologies today."
"We have initiated legal action to defend against infringing use of our patented technologies. We estimate that more than 30% of the ethanol industry is infringing on our patented corn oil extraction technologies today."
Both of these Quotes above are from the 3Q 2010 pages 23,24
But you can see below the roots of the language are even deeper.
"Over 20% of the U.S. ethanol industry is using GreenShift's patented and patent-pending extraction technologies today." This is from the 3Q 2009 page 24.
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According to Marc-IV Consulting - 30% of the industry is using corn oil extracting. GreenShift states that they know of no method of COES that does not infringe. GreenShift therefore states 30% of the industry is using GreenShift COES technology. That HAS to include the accused infringers currently under litigation. If not - you have to say they are NOT using our technology. In that case - they are not infringing. So . . . to me: The % licensed + the % infringing under litigation + the % infringing under threat of litigation = +30% Ethanol Industry.
SkunK
"Over 30% of the U.S. ethanol industry is using GreenShift’s patented and patent-pending extraction technologies today."
"We have initiated legal action to defend against infringing use of our patented technologies. We estimate that more than 30% of the ethanol industry is infringing on our patented corn oil extraction technologies today."
Both of these Quotes above are from the 3Q 2010 pages 23,24
But you can see below the roots of the language are even deeper.
"Over 20% of the U.S. ethanol industry is using GreenShift's patented and patent-pending extraction technologies today." This is from the 3Q 2009 page 24.
****************
According to Marc-IV Consulting - 30% of the industry is using corn oil extracting. GreenShift states that they know of no method of COES that does not infringe. GreenShift therefore states 30% of the industry is using GreenShift COES technology. That HAS to include the accused infringers currently under litigation. If not - you have to say they are NOT using our technology. In that case - they are not infringing. So . . . to me: The % licensed + the % infringing under litigation + the % infringing under threat of litigation = +30% Ethanol Industry.
SkunK
2012 Projections!
Neil has worked up some projections for GreenShift below. Thanks Neil for your hard work. This is difficult work projecting into the future with what information we have today. As always, make your own investment decisions. Neil's comments and Spreadsheet Here and below:
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Some comments to give some perspective to these revised projections:
1) With most of the known customers now on-line, the time to bring each facility on-line is less important to the outcome. hence I've taken a more"broad brush" approach and used actual "live" dates where known (which is for most of them). So you'll see nearly all of the facilities in my spreadsheet are at 100% production from January 1 - that's my assumption.
2) I've used a corn oil price of $3 from October 2011 as the basis for the projections. The results obviously vary depending on this critical number and replacing it at Oct 2011 will update both the revenue and cash flow figures.
3) Using $3 as the price shows a healthy revenue for 2012 of around $27 million and cash at year end of around $15 million. Any settlements in the mean time are a bonus and improve the picture accordingly. My numbers are conservative with regard to optimal production from each facility, which I've assumed to be multiples of 50mmgy. In some cases these have been increased significantly according to info on I-hub.
4) Which ever way you look at it GERS becomes cash accreted during 2012. At a price of $3 for corn oil, sufficient cash is generated to pay back 50% of debt by year end. This suddenly gives clear visibility to the GERS story and additional customers only makes it better. It is getting to the stage where, like I've done, analysts can model future income/asset growth and project positive market valuations. This visibility of earnings/cash flow can only be good for the share price.
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See Neil's Projections on a spreadsheet.
Notice he lists his 12 assumptions at the end. Change them as you desire and develop your own projections. I'm sure Neil would appreciate critiques, suggestions and encouragement in the comment section. Thanks again Neil for all your work!
SkunK
PS This can be fun. Go back in time on the web using Way Back HERE. For example, here is ICM's old Corn Oil site Here on 29 May 2010 and here is the new one on 13 July 2011. It does not record when things change, it just records things when the crawlers come through the site. This site may help in the Valero discussion on I-Hub although the press site here appears to have been updated last on 28 May 2010.
******************
Some comments to give some perspective to these revised projections:
1) With most of the known customers now on-line, the time to bring each facility on-line is less important to the outcome. hence I've taken a more"broad brush" approach and used actual "live" dates where known (which is for most of them). So you'll see nearly all of the facilities in my spreadsheet are at 100% production from January 1 - that's my assumption.
2) I've used a corn oil price of $3 from October 2011 as the basis for the projections. The results obviously vary depending on this critical number and replacing it at Oct 2011 will update both the revenue and cash flow figures.
3) Using $3 as the price shows a healthy revenue for 2012 of around $27 million and cash at year end of around $15 million. Any settlements in the mean time are a bonus and improve the picture accordingly. My numbers are conservative with regard to optimal production from each facility, which I've assumed to be multiples of 50mmgy. In some cases these have been increased significantly according to info on I-hub.
4) Which ever way you look at it GERS becomes cash accreted during 2012. At a price of $3 for corn oil, sufficient cash is generated to pay back 50% of debt by year end. This suddenly gives clear visibility to the GERS story and additional customers only makes it better. It is getting to the stage where, like I've done, analysts can model future income/asset growth and project positive market valuations. This visibility of earnings/cash flow can only be good for the share price.
************************
See Neil's Projections on a spreadsheet.
Notice he lists his 12 assumptions at the end. Change them as you desire and develop your own projections. I'm sure Neil would appreciate critiques, suggestions and encouragement in the comment section. Thanks again Neil for all your work!
SkunK
PS This can be fun. Go back in time on the web using Way Back HERE. For example, here is ICM's old Corn Oil site Here on 29 May 2010 and here is the new one on 13 July 2011. It does not record when things change, it just records things when the crawlers come through the site. This site may help in the Valero discussion on I-Hub although the press site here appears to have been updated last on 28 May 2010.
30% and Growing Fast!
Biodiesel Magazine January 18th, 2012
See Entire Article HERE
Corn Oil Advancements
"Among the most promising feedstock currently in use today, one that’s factored into the working group’s econometric assessment, is corn oil extracted from the backend of ethanol plants, thanks to improvements in extraction technology over the past several years. In fact, corn oil becomes relevant to the group’s projections around 2013 and it continues to become more relevant as greater technology adoption increases throughout the ethanol industry. By 2015, the group estimates the feedstock will provide an even more meaningful contribution to the biodiesel industry.
According to Alan Weber, partner at Marc-IV Consulting and lead economic advisor to the committee, the group assumed that about 30 percent of the dry-grind ethanol plants incorporated corn oil extraction technology from DDGS in 2011. By 2016, the group model determined that half of all ethanol plants are assumed to be extracting oil from DDGS and by the end of its 10-year horizon, nearly 70 percent of all ethanol plants will have this capability.
“I think those assumptions are going to be proven true and probably even quicker,” Weber says. “Most industry discussions have indicated that within the next couple years, at least half of the ethanol plants will probably have installed capacity.”
How much corn oil yield could potentially come from an existing bushel of No. 2 yellow dent corn used in ethanol production? According to Weber, the group assumed that corn oil yields from de-oiled DDGS per bushel of corn processed will increase from 0.5 pounds in 2010 to 0.6 pounds by 2015 and one pound by 2020.
“Even moving up to one pound is probably only, at most, two-thirds the oil potential in that bushel of corn,” Weber says. “A lot of this also comes down to market dynamics of what the value of the oil is versus its value as a feed ingredient in DDGS, the region where the ethanol plant is located and what the markets are for the DDGS in that region, because the type of livestock can impact how much protein and fat is desired.”
Weber notes that if the biodiesel industry were to pull 0.6 pounds of corn oil from de-oiled DDGS and every dry-grind ethanol plant in the U.S. were to install corn oil extraction technology, “we’re talking 370 to 375 million gallons worth of corn oil potential,” he says. “If we move up to removing one pound per bushel, that’s more than 600 million gallons of inedible corn oil that could be utilized if all of the dry-grind ethanol facilities were removing corn oil from DDGS.”
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SkunK
See Entire Article HERE
Corn Oil Advancements
"Among the most promising feedstock currently in use today, one that’s factored into the working group’s econometric assessment, is corn oil extracted from the backend of ethanol plants, thanks to improvements in extraction technology over the past several years. In fact, corn oil becomes relevant to the group’s projections around 2013 and it continues to become more relevant as greater technology adoption increases throughout the ethanol industry. By 2015, the group estimates the feedstock will provide an even more meaningful contribution to the biodiesel industry.
According to Alan Weber, partner at Marc-IV Consulting and lead economic advisor to the committee, the group assumed that about 30 percent of the dry-grind ethanol plants incorporated corn oil extraction technology from DDGS in 2011. By 2016, the group model determined that half of all ethanol plants are assumed to be extracting oil from DDGS and by the end of its 10-year horizon, nearly 70 percent of all ethanol plants will have this capability.
“I think those assumptions are going to be proven true and probably even quicker,” Weber says. “Most industry discussions have indicated that within the next couple years, at least half of the ethanol plants will probably have installed capacity.”
How much corn oil yield could potentially come from an existing bushel of No. 2 yellow dent corn used in ethanol production? According to Weber, the group assumed that corn oil yields from de-oiled DDGS per bushel of corn processed will increase from 0.5 pounds in 2010 to 0.6 pounds by 2015 and one pound by 2020.
“Even moving up to one pound is probably only, at most, two-thirds the oil potential in that bushel of corn,” Weber says. “A lot of this also comes down to market dynamics of what the value of the oil is versus its value as a feed ingredient in DDGS, the region where the ethanol plant is located and what the markets are for the DDGS in that region, because the type of livestock can impact how much protein and fat is desired.”
Weber notes that if the biodiesel industry were to pull 0.6 pounds of corn oil from de-oiled DDGS and every dry-grind ethanol plant in the U.S. were to install corn oil extraction technology, “we’re talking 370 to 375 million gallons worth of corn oil potential,” he says. “If we move up to removing one pound per bushel, that’s more than 600 million gallons of inedible corn oil that could be utilized if all of the dry-grind ethanol facilities were removing corn oil from DDGS.”
*****************
SkunK
Whats Up? $100M?
Thanks to kimbrowntxselect post on I-Hub for this interesting angle. Still working, but found enough to post and peak my interest.
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
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
New COES Patent Application
New COES Application just published here. Notice date on far right -top of January 12, 2012. Here is the publication notification letter. You can see it was only submitted in July 2011 - so it is moving fast. This is named the same - and claims parentage of the 5th COES Patent that has been approved and ready, and we are waiting for its issue.
Are these locking in Method Two? Or does "chemical additive comprises adding enzymes" mean it is Level Three? Wish I was just a little smarter and I could tell you. Does seem to put it outside traditional Level 1 mechanical and heating concepts. Thoughts appreciated.
SkunK
Are these locking in Method Two? Or does "chemical additive comprises adding enzymes" mean it is Level Three? Wish I was just a little smarter and I could tell you. Does seem to put it outside traditional Level 1 mechanical and heating concepts. Thoughts appreciated.
SkunK
Tuesday, January 17, 2012
Video Stats
You might have noticed I have been going with a video theme and I just found the STATS. Some of you may be more familiar with You-Tube, but I just found the real time statistics by clicking at arrow #1 below the GERS Video HERE:
I see we had a slight upturn at the start of the week and it continues to grow. This blog stands at over 350 video hits. Looks like some also put the video link on Yahoo and got over 400 introductions to corn oil extraction and GreenShift! If they climbed aboard then, they should be happy investors today. Results!
SkunK
PS HERE is 21st Century link and as I hit it - it showed the GERS Video number 3 on the list. Not sure how that updates. Notice the numbers of hits on the other videos.
I see we had a slight upturn at the start of the week and it continues to grow. This blog stands at over 350 video hits. Looks like some also put the video link on Yahoo and got over 400 introductions to corn oil extraction and GreenShift! If they climbed aboard then, they should be happy investors today. Results!
SkunK
PS HERE is 21st Century link and as I hit it - it showed the GERS Video number 3 on the list. Not sure how that updates. Notice the numbers of hits on the other videos.
Potential New Customer?
Corn Plus is looking for a Corn Oil Extraction System (COES). HERE
The new fiscal year will bring a new dryer system with regenerative thermal oxidizer (RTO), corn oil extraction, plant software upgrades, reverse osmosis unit, and clean-in-place system. Each of these capital expenditures will increase potential profitability for Corn Plus for many years to come.
Here is a newsletter/shareholder letter that gives a little more detail. . .
SkunK
PS This was a nice find by kimbrowntxselect on I-Hub. We will have to see if they put out a power point after the annual meeting on the 25th. Maybe some more detail about the COES technology provider. . .
The stock price finding support after two doubles off the low. Perfect.
The new fiscal year will bring a new dryer system with regenerative thermal oxidizer (RTO), corn oil extraction, plant software upgrades, reverse osmosis unit, and clean-in-place system. Each of these capital expenditures will increase potential profitability for Corn Plus for many years to come.
Here is a newsletter/shareholder letter that gives a little more detail. . .
SkunK
PS This was a nice find by kimbrowntxselect on I-Hub. We will have to see if they put out a power point after the annual meeting on the 25th. Maybe some more detail about the COES technology provider. . .
The stock price finding support after two doubles off the low. Perfect.
Government and the Law of UC
Due to the Federal Government, the Law of Unintended Consequences, and their supposed lower carbon footprint, Brazil will continue to ship cane based ethanol here. Due to demand and free markets, the US Ethanol Industry will continue to ship cheaper corn based ethanol to Brazil.
This article also covers a recent California court ruling that benefits corn based ethanol. It has comments from Todd Becker [The CEO of GreenShift's biggest customer - GPRE] among others and mentions both the ethanol subsidy and the tariff that expired Dec. 31.
No corn oil mentioned directly but corn oil makes up an increasing amount of what is referred to here as "vegetable oil":
"Biodiesel, which is made from vegetable oil, animal fats and restaurant grease, will fill most of that advanced biofuel requirement."
"In 2012, the U.S. renewable fuel standard will require refiners to use 2 billion gallons of what are known as advanced biofuels, a category that excludes corn ethanol."
SEE HERE
SkunK
This article also covers a recent California court ruling that benefits corn based ethanol. It has comments from Todd Becker [The CEO of GreenShift's biggest customer - GPRE] among others and mentions both the ethanol subsidy and the tariff that expired Dec. 31.
No corn oil mentioned directly but corn oil makes up an increasing amount of what is referred to here as "vegetable oil":
"Biodiesel, which is made from vegetable oil, animal fats and restaurant grease, will fill most of that advanced biofuel requirement."
"In 2012, the U.S. renewable fuel standard will require refiners to use 2 billion gallons of what are known as advanced biofuels, a category that excludes corn ethanol."
SEE HERE
SkunK
Monday, January 16, 2012
Producers SeeK Corn Oil Extraction (update)
"In Iowa, ethanol producers will begin investing in corn oil extraction equipment with gusto in order to compensate for the lack of VEETC by earning the $6.6 million per year a typical 100 million gallon ethanol plant would get by extracting the oil from the DDGs."
See Here
SkunK
PS. I see "kimbrowntxselect" HERE posted the link to this article almost ten minutes before I did this morning. (Now I just see that I-Hub is on est while I am working cst - so that's 1:10?) Great Job! My crawlers picked it up twice prior to 6am cst. I just gotta get moving earlier in the morning! Been away from command central since last Friday and hanging out in snow country watching football. Was on vacation, but arm wrestled the Mrs for her laptop a few times. Home this afternoon and catching up now. No Pacer update.
We just basically doubled - and doubled again off our lows. Things are getting interesting.
If I can make a suggestion, we all might want to keep the big guns pointed down range rather than at one another. A little verbal snapping of a towel once in a while is one thing, but we sure do not want to take the focus away from out investment. GLTA
See Here
SkunK
PS. I see "kimbrowntxselect" HERE posted the link to this article almost ten minutes before I did this morning. (Now I just see that I-Hub is on est while I am working cst - so that's 1:10?) Great Job! My crawlers picked it up twice prior to 6am cst. I just gotta get moving earlier in the morning! Been away from command central since last Friday and hanging out in snow country watching football. Was on vacation, but arm wrestled the Mrs for her laptop a few times. Home this afternoon and catching up now. No Pacer update.
We just basically doubled - and doubled again off our lows. Things are getting interesting.
If I can make a suggestion, we all might want to keep the big guns pointed down range rather than at one another. A little verbal snapping of a towel once in a while is one thing, but we sure do not want to take the focus away from out investment. GLTA
Saturday, January 14, 2012
Links
Here are some new litigation links - at first blush they all appear administrative in nature?
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Blue Flint Change of Ownership Public company sells its 51% share of Blue Flint to non-profit cooperative Great River Energy for $18.5 million in cash. As reported HERE
BlueFlint Certification
Al-Corn Clean Fuel Attorney Withdrawals
SkunK
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Blue Flint Change of Ownership Public company sells its 51% share of Blue Flint to non-profit cooperative Great River Energy for $18.5 million in cash. As reported HERE
BlueFlint Certification
Al-Corn Clean Fuel Attorney Withdrawals
SkunK
Thursday, January 12, 2012
Wednesday, January 11, 2012
It begins
Multi-media Productions (USA) is pleased to announce that GreenShift Corporation has been selected to appear on 21st Century Business, an award winning international television series, on the Fox Business Network (as paid programming.)
See Here
Saturday January 14th @ 4:30pm ET / 1:30pm PT
Schedule Here
SkunK
See Here
Saturday January 14th @ 4:30pm ET / 1:30pm PT
Schedule Here
SkunK
Friday, January 6, 2012
Thursday, January 5, 2012
5th COES Patent Update
Here a couple screen shots from the USPTO Pair system. The first is the last issued patent - the '517 patent. You may notice that about two weeks after the "Application is considered ready for issue" the issue notification was mailed.
This second screen shot below is the new allowed 5th COES patent that I had reported on earlier. The 'NEWS' is that as of the 29th of December the "Application is Considered Ready for Issue". If we continue to follow this glide path we can expect an issue as early as the end of next week, but more likely during the work week of 17-20 January.
SkunK
PS. Whenever I observe media I try to ask myself: "Who is the target and what are they trying to make them do?" (Makes the political season somewhat bearable) I just went back and re-watched the GreenShift COES Video and asked myself those questions. My answer is that the video is targeted to ethanol producers as a follow up to an initial contact and a signed contract is the short term goal. Now all you Ethanol Plant Operators can say it: "duhhh SkunK, - well of course it is." Sorry, but you have to remember the ol'SkunK is an investor and like most of us - he is the center of his own universe. When someone is talking, they are talking to me. This, of course would explain why GreenShift has not yet featured this video with investors. Investors and financiers and other may be secondary targets - but I do not think the primary one. (I see we are over 950 views as I write this.)
Wednesday, January 4, 2012
Corn Oil Article
"It’s well known that corn oil extraction provides ethanol plants with an additional source of revenue and there’s a fast payback on capital costs. Clearly, ethanol plants realize the benefits and are jumping on the corn oil extraction bandwagon in increasing numbers."
SEE ALL HERE
SkunK
Luckily for me they do not screen for rift raft in the readers comments - :~)
Anytime they talk about corn oil it is a good thing. I think we should all be appreciative and supportive whenever corn oil is reported on. The amount of oil left in the DDGs is a concern for some markets and should be part of the discussion. Key GreenShift personnel came over from the poultry industry and are very familiar with its needs. We should remember that there was NO market for inedible corn oil in 2004 when GreenShift's technology first shook the industry. The market for inedible corn oil has continued to expand as fast (or faster) than the supply. The market for low oil DDGs has expanded as fast (or faster) than the supply. The solid price for each is proof enough of their continued demand.
SEE ALL HERE
SkunK
Luckily for me they do not screen for rift raft in the readers comments - :~)
Anytime they talk about corn oil it is a good thing. I think we should all be appreciative and supportive whenever corn oil is reported on. The amount of oil left in the DDGs is a concern for some markets and should be part of the discussion. Key GreenShift personnel came over from the poultry industry and are very familiar with its needs. We should remember that there was NO market for inedible corn oil in 2004 when GreenShift's technology first shook the industry. The market for inedible corn oil has continued to expand as fast (or faster) than the supply. The market for low oil DDGs has expanded as fast (or faster) than the supply. The solid price for each is proof enough of their continued demand.
Tuesday, January 3, 2012
Share Count
According to Olie77, a trusted moderator on I-hub, we start the new year with 17,258,197 shares outstanding.
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SkunK Perspective
No matter how I survey the landscape, a $200M market cap always seems within sight - on the horizon. Maybe that is my prejudice, but that number always seems to come up when I do my figuring. Even when the company's revenue makeup seemed much different that number seemed to appear. For instance looking ahead to this year - can you see profits of $2, 4, 6, 8M in the four quarters of this calender year - for a total of $20M in profits for CY2012? Times a conservative P/E of ten and we get to $200M.
Not so optimistic? How about a $1, 2, 3, 4M with a total of $10M in profits and a more realistic P/E of twenty? We still get to a market cap of $200M.
WHY THE mind EXERCISE sKUNk? What is your purpose?
Five dollars a share is the bench mark. This is the gold standard that all Pennys wish to achieve. You open yourself to new exchanges, new financing and new investors. With a $200M market cap you need 40M shares or less to get to 5 dollars.
But sKUNk CAN'T YOU JUST AS EASILY HAVE A $20M profit year and a P/E of 50? That would give you a billion dollar market cap and 200M OS with a $5 dollar share price?
Yes, and you may be right. I prefer to activate the "dilution minimal concern" button in the 40-50M share range. You may chose the 20M or the 200M share range. My point is concern should be based on "Can we still get to $5 a share from here?" And your answer should be based on your intermediate market cap projection.
Just some thoughts to ponder on a cold, short week . . . maybe a good night to put the applejack outside.
SkunK
**********************
SkunK Perspective
No matter how I survey the landscape, a $200M market cap always seems within sight - on the horizon. Maybe that is my prejudice, but that number always seems to come up when I do my figuring. Even when the company's revenue makeup seemed much different that number seemed to appear. For instance looking ahead to this year - can you see profits of $2, 4, 6, 8M in the four quarters of this calender year - for a total of $20M in profits for CY2012? Times a conservative P/E of ten and we get to $200M.
Not so optimistic? How about a $1, 2, 3, 4M with a total of $10M in profits and a more realistic P/E of twenty? We still get to a market cap of $200M.
WHY THE mind EXERCISE sKUNk? What is your purpose?
Five dollars a share is the bench mark. This is the gold standard that all Pennys wish to achieve. You open yourself to new exchanges, new financing and new investors. With a $200M market cap you need 40M shares or less to get to 5 dollars.
But sKUNk CAN'T YOU JUST AS EASILY HAVE A $20M profit year and a P/E of 50? That would give you a billion dollar market cap and 200M OS with a $5 dollar share price?
Yes, and you may be right. I prefer to activate the "dilution minimal concern" button in the 40-50M share range. You may chose the 20M or the 200M share range. My point is concern should be based on "Can we still get to $5 a share from here?" And your answer should be based on your intermediate market cap projection.
Just some thoughts to ponder on a cold, short week . . . maybe a good night to put the applejack outside.
SkunK
Monday, January 2, 2012
End of Tax Credit
2012 brings the end of the tax credit. Even more need for corn oil co-dual-concomitant-by-product.
See Here Those who have made good, innovative, non-infringing business decisions will be strong - and the strong will survive and prosper.
SkunK
See Here Those who have made good, innovative, non-infringing business decisions will be strong - and the strong will survive and prosper.
SkunK
Tingle of the SkunK Senses
After a holiday dry spell on pacer - I thought I might get a GERS thrill today!
This is what I saw first HERE concerning a Transcript being ready for review. Below is what I saw when I hit the link - thinking for a moment they had actually made it public by mistake!
***********************************
"You do not have access to this transcript."
"TRANSCRIPT of Telephonic Conference held on 10/7/11 before Magistrate Judge Debra McVicker Lynch. (18 pages.) Court Reporter/Transcriber: Laura Howie-Walters (Telephone: (317) 632-3422). Please review the USDC Tr anscript Policy for more information on redaction procedures. Redaction Statement due 1/23/2012. Release of Transcript Restriction set for 3/30/2012. Associated Cases: 1:10-ml-02181-LJM-DML, 1:10-cv-00180-LJM-DML, 1:10-cv-08000-LJM-DML, 1:10-cv- 08001-LJM-DML, 1:10-cv-08002-LJM-DML, 1:10-cv-08003-LJM-DML, 1:10-cv-08004-LJM-DML, 1:10-cv-08005-LJM-DML, 1:10-cv-08006-LJM-DML, 1:10-cv-08007-LJM-DML, 1:10-cv-08008-LJM-DML, 1:10-cv-08009-LJM-DML, 1:10-cv-08010-LJM-DML, 1:10-cv-08011-LJM-DML(Howie-Walters, Laura)"
**********************************
Oh well, at this point I'll take any excitement I can get . . .
SkunK
This is what I saw first HERE concerning a Transcript being ready for review. Below is what I saw when I hit the link - thinking for a moment they had actually made it public by mistake!
***********************************
"You do not have access to this transcript."
"TRANSCRIPT of Telephonic Conference held on 10/7/11 before Magistrate Judge Debra McVicker Lynch. (18 pages.) Court Reporter/Transcriber: Laura Howie-Walters (Telephone: (317) 632-3422). Please review the USDC Tr anscript Policy for more information on redaction procedures. Redaction Statement due 1/23/2012. Release of Transcript Restriction set for 3/30/2012. Associated Cases: 1:10-ml-02181-LJM-DML, 1:10-cv-00180-LJM-DML, 1:10-cv-08000-LJM-DML, 1:10-cv- 08001-LJM-DML, 1:10-cv-08002-LJM-DML, 1:10-cv-08003-LJM-DML, 1:10-cv-08004-LJM-DML, 1:10-cv-08005-LJM-DML, 1:10-cv-08006-LJM-DML, 1:10-cv-08007-LJM-DML, 1:10-cv-08008-LJM-DML, 1:10-cv-08009-LJM-DML, 1:10-cv-08010-LJM-DML, 1:10-cv-08011-LJM-DML(Howie-Walters, Laura)"
**********************************
Oh well, at this point I'll take any excitement I can get . . .
SkunK
Happy New Years!
Here is wishing you and yours a most happy, healthful and prosperous New Years.
As the GreenShift community enters 2012 I believe that it is coiled for success like never before.
Corn Oil Extraction and the methods promoted and patented by GreenShift is no longer fringe. It is now mainstream technology that will either be used or planned for use in nearly every corn ethanol plant in the country in 2012. Serious people have previously claimed that corn oil extraction would never work on an industry scale because of the poor quality corn oil produced, the amount of electricity used, the noise made, transportation costs, labor costs, lack of capital - and the list goes on. In the last year it became obvious to even the "can't do it COES critics" that none of these things were still a serious issue (too loud? Really?). In 2011 the critics were simply overcome by events: OCBE!
GreenShift COE systems with as little as a six month payback - well that pretty much says it all. GPRE is the example of doing it right. In the course of about a year - they planned, deployed COES at nine plants and paid for them with the corn oil produced. The Sunoco deal, where GreenShift was awarded contracts to design, build and install a state of the art new corn oil recovery facility may be the blueprint for the future.
Is this the year investors will be rewarded for their insight and risk taking? I am an investor here - so of course I think so! So if you desire you can attribute my positive attitude to . . . well, my positive attitude and that would be just fine with me. However it would seem hard to dispute that GreenShift is poised like never before to make this the year of continued and increasing profits. After this week we will be through the holidays and we will be entering a six week time frame when the company has traditionally communicated with investors through shareholder letters, refinancing agreements and licensing deals. I would expect this year to follow that format.
I have made it a tradition to give you some statistics on the blog around the new year so here goes:
Is this the year investors will be rewarded for their insight and risk taking? I am an investor here - so of course I think so! So if you desire you can attribute my positive attitude to . . . well, my positive attitude and that would be just fine with me. However it would seem hard to dispute that GreenShift is poised like never before to make this the year of continued and increasing profits. After this week we will be through the holidays and we will be entering a six week time frame when the company has traditionally communicated with investors through shareholder letters, refinancing agreements and licensing deals. I would expect this year to follow that format.
I have made it a tradition to give you some statistics on the blog around the new year so here goes:
Here are the top 25 cities that visit the blog:
Here
are the mobile numbers above. These are the top 25 countires below. All numbers are for the last 30 days. The pictures should get bigger when you click on them. Thanks for making me the most read GreenShift blog in the entire world! (OK, so I am also the only one!)
SkunK
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