GreenShift GERS - the unofficial site

. . . and other new systems

2012-01-29T00:51:00.009-06:00

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 . . . "

********************************
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

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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."

"Billion"

2012-01-28T13:12:00.004-06:00

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."

Reply in Support

2012-01-28T00:20:00.002-06:00

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

MAX update

2012-01-28T00:03:00.002-06:00

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

Picking up Speed

2012-01-26T15:42:00.005-06:00

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.

Nice Corn Oil Site

2012-01-26T02:31:00.003-06:00

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

Tiny Litigation Update

2012-01-24T12:41:00.003-06:00

Seal Defendant's Brief

SkunK

Corn Oil Advancements

2012-01-24T11:40:00.007-06:00

"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

2012-01-24T11:13:00.000-06:00

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

God Bless anybody who wants to use that Prevost Method

2012-01-23T11:30:00.002-06:00

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.

Markman Transcript

2012-01-22T13:22:00.000-06:00

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

TidBits

2012-01-22T11:32:00.004-06:00

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.
**********************

SkunK

These Dots are 15 Miles Apart

2012-01-21T10:17:00.005-06:00

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

Satisfied Customer

2012-01-20T15:47:00.001-06:00

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!

Great Article

2012-01-20T09:50:00.000-06:00

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

Trusted SOURCE! WOW!

2012-01-19T16:25:00.000-06:00

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

Trusted Source

2012-01-19T15:08:00.002-06:00

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)

New Patent Ap/Method II

2012-01-19T10:50:00.005-06:00

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.

Here are all 11 Full size Diagrams

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

January 28, 2011

"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

New Pacer Filings

2012-01-18T20:48:00.001-06:00

Video Testimony
Defendant's Proposed Order

SkunK

Just one SkunK's Opinion

2012-01-18T19:00:00.002-06:00

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

2012 Projections!

2012-01-18T15:14:00.001-06:00

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:
******************
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.

30% and Growing Fast!

2012-01-18T14:12:00.007-06:00

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

Whats Up? $100M?

2012-01-18T12:06:00.002-06:00

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

New COES Patent Application

2012-01-18T09:31:00.001-06:00

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

Video Stats

2012-01-17T20:10:00.002-06:00

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.

Potential New Customer?

2012-01-17T16:22:00.000-06:00

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.

Government and the Law of UC

2012-01-17T00:02:00.003-06:00

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

Producers SeeK Corn Oil Extraction (update)

2012-01-16T08:08:00.006-06:00

"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

Video

2012-01-16T06:33:00.000-06:00

HERE is where the video was first posted on 22 December, at the time it had less than 5 views. Now it is over 1300 views.

SkunK

Links

2012-01-14T07:54:00.000-06:00

Here are some new litigation links - at first blush they all appear administrative in nature?
*********************
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

Break

2012-01-12T19:34:00.001-06:00

SkunK
Something smells good here. I put an X on my calender today.

Another Link

2012-01-12T00:47:00.001-06:00

SEE HERE

SkunK

It begins

2012-01-11T11:15:00.001-06:00

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

New GreenShift Filings

2012-01-06T00:01:00.001-06:00

Stay request

Request to File Exhibit A under seal

Declaration of Support

SkunK

5th COES Patent Update

2012-01-05T12:46:00.003-06:00

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.)

Corn Oil Article

2012-01-04T10:37:00.001-06:00

"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.

Share Count

2012-01-03T11:19:00.003-06:00

According to Olie77, a trusted moderator on I-hub, we start the new year with 17,258,197 shares outstanding.
**********************
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

End of Tax Credit

2012-01-02T12:56:00.002-06:00

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

Tingle of the SkunK Senses

2012-01-02T10:58:00.003-06:00

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

Happy New Years!

2012-01-02T03:31:00.006-06:00

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:

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

2012 Ethanol Conference

2011-12-31T03:50:00.001-06:00

The following are registered to represent GreenShift Corporation at the 2012 Ethanol Conference in Orlando, Florida 22-24 February 2012. Chris Kennedy, Project Manager; David Winsness, CTO; Greg Barlage, Chief Operating Officer; out of Alpharetta, Georgia and Ed Carroll, CFO & President out of NY, NY.

As the agenda develops, potential GreenShift areas of interest include "Blend Your Own (BYO) Ethanol and Blender Pumps" and "Technology Advancements Improving the Bottom Line."

SEE HERE

SkunK

PS So far no ICM reps on the list - I see Fagen is a sponsor.

About Half?

2011-12-29T16:43:00.000-06:00

Here is an EPM article that talks about a unique situation in Canada involving their swine production and the running cost competition de-oiled corn DDGS have with wheat DDGS. Yes wheat DDGs! What I see as important here is that 'half" of the DDGs coming into Canada have gone through a COES process. It is not scientific poll but we are well into the entire industry moving to COES and corn oil as a co-byproduct.

"With U.S. ethanol plants adding corn oil extraction in increasing numbers, about half the distillers grains coming into Canada is a low corn oil product, . . "

SEE HERE

SkunK

As long as the rising Asian middle class and parts south demand an increasing beef portion in their diet, the American corn ethanol DDGs will not have trouble finding a world wide market. High protein, reduced fat DDGS also have a huge market in the American Dairy and Beef industry.

Aberdeen to Add Corn Oil in 2012

2011-12-29T01:12:00.003-06:00

ADVANCED BIOENERGY, LLC 10K Annual Report is just out and we have some good news about adding their Aberdeen Plant to GreenShift's Customer List in 2012!

"In August 2011, we implemented corn oil extraction technology at our Fairmont plant, and intend to implement the technology at our Aberdeen facility in 2012. The corn oil systems are designed to extract non-edible corn oil during the thin stillage evaporation process immediately prior to production of distillers grains. Corn oil is produced by processing evaporated thin stillage through a disk stack style centrifuge. Corn oil has a lower density than the water or solids that make up the syrup. The centrifuges separate the relatively light oil from the heavier components of the syrup, eliminating the need for significant retention time. De-oiled syrup is returned to the process for blending into wet, modified, or dry distillers grains. The corn oil product is primarily marketed as a livestock feed supplement or to the biodiesel market.

Industrial uses for corn oil include feedstock for biodiesel, livestock feed additives, rubber substitutes, rust preventatives, inks, textiles, soaps and insecticides. Our corn oil is primarily sold by truck to biodiesel manufacturers."
*****
"In the sales of corn oil, we compete with other ethanol producers. Many producers are adding corn oil technology to their facilities."

SEE Quotes Above HERE p.10

SkunK

Here is the recent Video Showing the GreenShift COES System at the ADVANCED BIOENERGY Fairmont plant. I see we are over 730 views now.

Video Repost

2011-12-27T10:17:00.004-06:00

I see the GreenShift Video got reposted HERE
We now have over 430 views. Not a bad start for a holiday weekend!

Here is where GreenShift announced the Advanced BioEnergy LLC deal back in August of this year. They talk about the two Alfa Laval Disc Stack Centrifuges that you see in the video - producing some 3 Million gallons of corn oil at the plant.

SkunK

PS. Back in 2008 I took some heat for posting this: "The fuel tanker above has an 8500 gallon capacity. Moving 1.5M gallons of corn oil/year = (4110 gallons/day) would require one of these tanker trucks moving the oil to a bio-diesel plant almost every other day." I based this on a 50mmgy ethanol plant. Now Advanced Biodiesel reports 8 trucks/week coming out of their 110mmgy plant. Close enough :~)

Merry Christmas to All

2011-12-25T12:09:00.001-06:00

Merry Christmas to you and yours from the SkunK family.

Notice of Allowance for 5th COES Patent

2011-12-24T00:14:00.003-06:00

The SkunK has been following a promising GreenShift COES patent application. I have learned from the Patent Public pair that the notice of allowance was issued on December 21st for GreenShift Patent Application 20080110577 "Method and systems for enhancing oil recovery from ethanol production byproducts"

This is the 5th COES patent allowed and the patent could be issued in as little as three weeks to 4 weeks. Although I am certainly not a patent expert I have picked up on a few things along the way. This seems to be a significant patent in that 15 claims have been allowed in this particular patent. As others have learned this is a difficult field to receive a patent and each claim and each patent helps to solidify GreenShifts leadership position in Corn Oil Extraction.

Notice of Allowance

Here are GreenShift's present 4 Corn Oil Extraction Patents

SkunK

ps - When my bot found that GreenShift You-Tube it was just posted and had less than 5 views. I see now (lower right corner) in less than 36 hours - it has over 330!

SkunK-Tube

2011-12-22T13:27:00.005-06:00

See Here

This is a great video. Less than five hits so far. If you know where the education might do some good - do not be shy - get the link out there in the market place. Watch the number of hits explode.

SkunK

PS When will they market the GreenShift shirts? I want mine to say "GreenShift Investor"

Cost of Corn Oil Additive

2011-12-22T13:05:00.000-06:00

The SkunK has followed the public story of Lincolnway's COE. Here they give us a look at the cost of the additive they use.
***********************
Lincolnway Energy estimates that it will produce and sell approximately 4,700 tons of corn oil per year at the plant. Lincolnway Energy does not, however, anticipate that corn oil will be a material product of Lincolnway Energy because Lincolnway Energy’s corn oil sales were approximately $1,200,000 and $1,500,000 and $3,400,000 respectively, for the fiscal years ended September 30, 2009 and September 30, 2010, and September 30, 2011 which represented less than 2%, of Lincolnway Energy's total revenues for those respective fiscal years. Lincolnway Energy's oil sales did increase approximately 127% compared to the prior year. This was due to an additive that was added to the process to improve the oil yield. The cost of the additive for the year was approximately 8% of corn oil revenue.

See Here page 4

*******************************
Litigation
Here is what they said a year ago:
"The case has been transferred to the United States District Court for the Southern District of Indiana pursuant to Multi-District Litigation proceedings. No initial disclosures have yet been exchanged and no discovery has yet been completed. Lincolnway Energy is therefore unable to determine at this time if the Complaint will have a material adverse effect on Lincolnway Energy."

Here is what they told their investors this year:

"The case has been transferred to the United States District Court for the Southern District of Indiana pursuant to Multi-District Litigation proceedings. The initial claims construction hearing has been held, and the United States District Court has construed the disputed terms. Various discovery activities, motions and other procedural actions have also been made or taken. Lincolnway Energy, however, is unable as of the date of this annual report to determine if the Complaint will have a material adverse effect on Lincolnway Energy".

SkunK

Watch Closely

2011-12-22T12:25:00.000-06:00

Does Flint hills have a GreenShift License? Are they buying this biodiesel plant and retrofitting it to run corn oil from their ethanol plants? Just speculation at this point. Just speculation from an anonymous source in a previous blog comment. Speculation can be fun, especially for us speculators. Just know what it is.
See Here

SkunK

US Corn Farmers Feeding the World

2011-12-22T10:20:00.003-06:00

US DDGs shipped around the world. Removing a portion of the corn oil from the DDGs helps drying, ease of transfer and shelf-life.

"Wisconsin corn is feeding cattle in Japan, hogs in Vietnam and a rapidly growing middle-class in China hungry for a more sophisticated diet."

"Last year, China was the largest importer of another important U.S. corn industry product-dried distillers grain (DDG). However, claims of dumping by the Chinese government halted DDG imports this year. While the DDG case is widely recognized as retaliation for U.S. claims of Chinese tire dumping, Sanchez said the issue appears so political it can't be resolved quickly. He told the group that Chinese feed buyers tried forming a coalition to persuade their government to drop the case but the movement didn't gain traction."

"I don't know when the DDGs issue will blow over, but they can't keep it up for very long," Sanchez said. "We may have to put some time between the issue and government action. Relationships are above laws in China and business leaders often work connection to get approvals or to gain the ‘blind eye' when needed."

"The U.S. Grains Council is continuing efforts to educate Chinese feed ingredient buyers about the many advantages of DDGs from the U.S. The ethanol co-product is a competitively priced, environmentally friendly source of protein for livestock and present opportunity for both ingredient buyers and our domestic ethanol producers alike. DDG is being promoted for swine, poultry and dairy rations in China."
See Here

SkunK

7 Top

2011-12-15T00:25:00.000-06:00

7 Top Penny Stocks in Review

GreenShift Corp. (OTC: GERS) shares slipped 11.76% to $0.08, with volume of 129 K shares traded. GreenShift develops and commercializes clean technologies that facilitate the more efficient use of natural resources.

See Here

SkunK

Cardinal Update

2011-12-14T01:16:00.002-06:00

Corn Oil
In November 2008, we began separating some of the corn oil contained in our distiller's grains for sale. Corn oil sales represented approximately 2% of our revenues for our 2011 fiscal year. We anticipate continuing to fine tune the operation of our corn oil extraction equipment and we expect that it will operate more efficiently in the future. The corn oil that we produce is not food grade corn oil and therefore cannot be used for human consumption without further refining. However, corn oil can be used as the feedstock to produce biodiesel and has other industrial uses. SEE HERE page 6
***************
Even after three years they still expect it to work better in the future . . .
***************
Corn Oil Extraction Note
In July 2008, the Company and the financial institution amended the construction loan for an additional $3,600,000 to be used for the installation of a corn oil extraction system and related equipment. In April 2009, the Corn Oil Extraction Note was converted into a term note with interest at the greater of the 3-month LIBOR rate plus 300 basis points, or 5%, provided no event of default exists. Principal will be due in quarterly installments of $90,000, plus accrued interest, commencing in July 2009 through April 2014. The interest shall adjust based on the Company meeting certain financial targets, measured quarterly. At September 30, 2011 and September 30, 2010 the balance on the corn oil extraction note was $2,790,000 and $3,150,000, respectively.

****************
In a period when COES payback periods are a year or less, - AS GPRE EXPERIENCED - Cardinal reports above they have paid off less than 25% of a three year old, 2008 COES loan.
see here
***************
SkunK

Save up to 65% of

2011-12-10T10:20:00.002-06:00

Here is a sale where you can purchase GE motors for up to 65% of.

Until recently they had a tricanter centrifudge for sale, but now you need a password to find out if it is still available.

SkunK

Here is hoping everyone can take some time of this holiday to spend with family. - Merry Christmas!

Nothing Unusual to Report

2011-12-10T09:55:00.000-06:00

Just checked the patent litigation perimeter and outposts Max and Fagen. Nothing. Looks like a quiet weekend on Pacer.

SkunK

Poet Insider Video

2011-12-08T00:26:00.002-06:00

Here is a Poet Video about corn oil.
SEE HERE

Insider Article

SkunK
Note the "patented" no heat process is for ethanol production.

From GERSD to GERS

2011-12-06T11:09:00.004-06:00

The Company’s common stock will begin trading on a post-reverse split basis on November 11, 2011. The post-reverse split common stock will be listed under the symbol “GERSD” for twenty business days, then will revert to “GERS.” SEE HERE

If one was looking for good Public Relations news to accompany the 3Q and the recent split, one may see it following the revert back to "GERS". One is unlikely to see a PR with "GERSD" in it, - and while some shareholders are still going through conversion. That should conclude on Monday or Tuesday of next week - and if we are getting news before the Christmas/Hanukkah holidays it will happen then. The following week is a short one for many so it is not cost effective to start a campaign the week of the 19th - 23rd. In 2009 we had an 8-K on 9 December and old timers may remember the year before - 2008 - the GE deal was announced on 16 December and we had numerous PR releases that week.

So the SkunK is going out on a shaky, ice covered limb this week and estimates that we will hear something from the company on Monday or Tuesday of next week. If I am wrong - then I expect it to be quiet until at least the 9th of January.

SkunK

Corn vs Palm Oil

2011-12-06T10:12:00.002-06:00

"There is appeal with corn oil. The U.S. has ethanol plants in place and the logistics have been set up years ago, so it's a matter of extracting more value from corn through its oil," he said.

While corn oil now costs around $1,300 a ton, a greater commitment by U.S. ethanol producers to actively use this as a feedstock for biodiesel would bring more supply to the expanding biodiesel market, bringing prices lower.

The U.S. has the potential to produce 580 million gallons of corn oil, once taking into account that some of the oil is needed to keep the substance of DDG -- a valuable source of animal feed, Dwyer said.

See Article Here
Another Article HERE

SkunK

Thanks to Anonymous @10:02 AM in Previous Blog for heads up.

Poet's Corn Oil Report

2011-12-06T00:31:00.000-06:00

See Here

SkunK

Dilution and Cash as a Strategic Weapon - 3Q

2011-12-03T11:36:00.005-06:00

Cash Reserve - Now $1.5M
These expenses may delay or otherwise adversely affect our ability to achieve our profitability and debt reduction goals. We hope to eventually eliminate our litigation expense, but we must and will take all necessary steps to bring infringement of our patents to an end. We have reserved cash for this purpose.

Expand Litigation - Soon?
Operating expenses for the three months ended September 30, 2011 and 2010 were about $1.1 million and $1.0 million, respectively. Our operating expenses include significant professional fees which can be expected to increase moving forward as we defend against infringement and expand our patent litigation.

These expenses have increased in the latter half of 2011 and are expected to continue to increase into 2012 in advance of trial, and as we expand our litigation to protect the competitive advantage of our licensees by prosecuting additional producers and other parties infringing our patents. Consequently, litigation expenses may delay or otherwise adversely affect our ability to achieve our profitability and debt reduction goals. We hope to eventually eliminate our litigation expense, but we must and will take all necessary steps to bring infringement of our patents to an end. Despite these expected increases, our operating expenses can be expected to decrease overall as a percentage of revenue in future periods as we continue to realize increased economies of scale from our existing and new licensing activities.

Litigation AND Financing Directly Related to Building Cash Reserves
Our liquidity and capital resources were improved during the third quarter of 2011 as compared to prior periods. During the nine months ended September 30, 2011, we produced about $0.5 million in net cash from operating activities and about $3.3 million in net cash from investing activities, and used about $2.3 million in net cash in financing activities. The shift in early 2011 from relying on cash from financing activities to producing and using surplus cash from operating and investing activities was an important milestone for GreenShift and its shareholders. That said, the output of our licensees, the price for corn oil are variable and litigation costs can be expected to continue to increase. Thus, until we build up a meaningful cash reserve, we cannot rule out the possibility that we may seek financing to cover operating needs in the future. Our cash positions at September 30, 2011 and December 31, 2010 were about $1.5 million and $18,000, respectively.

License Agreements More than Cover Sales, Operating Expense, Professional Fees
Income from operations during the nine months ended September 30, 2011 was about $7.1 million, or about $2.1 million net of the $5.0 million in performance bonuses earned from YA Corn Oil during the nine month period. We anticipate improving on this result in future quarters in connection with the commencement and realization of full production by existing and new licensees. Our costs of sales and operating expenses moving forward will be primarily comprised of (1) technology royalties; (2) employee costs; (3) travel, materials and other expenses incidental to execution of our license support services; (4) general and administrative costs relating to our offices, utilities and insurance; and (5), professional fees relating to accounting, corporate and litigation activities. As discussed above, we expect that the license agreements we have executed to date will provide sufficient revenue to more than cover all of these costs on an ongoing basis.

*********************
If you follow my summary logic as outlined in blue (above each quote from the 3Q) you might agree that:

1. The Cash Reserve is for litigation
2. The Litigation is about to expand.
3. The Cash Reserve will also expand - until it becomes "meaningful"
4. The license agreements already executed will more than cover Sales and Operating Expense.

Up till now I am trying to basically restate what I think is already said in the 3Q. Now this next step takes a step further - deduced from above:

5. Present financing activities (IF ANY, stock sales/dilution) are being used to service the debt and add to the cash reserve.

SkunK? SO WHAT!

Well, as a shareholder, I am not here to argue in favor of dilution - lets get that out of the way right away. No one has to give me a history lesson here - I lived it :~). Can we learn the lessons of the past without living in the past? We do need to recognize where we are now and what has changed - luckily we are now profitable - with net income. May I be so bold to state that dilution, if it is done in a limited fashion, [less than the percentage growth in net income], and the gained assets are moved to cash and the elimination of debt - then it directly adds to book value - tangible equity that will at some point directly affect the pps.

How can we now sit with more cash than market cap?  How can we set at this pps with a small but valid earnings per share?   Two main reasons at this point:

1. Lack of a (profitable) track record. Pennyland is full of stocks that manipulate their books to show a quarter of profit. In the 3Q GreenShift made a small but significant profit due to revenues from corn oil royalties. As investors, we know that these royalties are not one time sales or asset manipulation,  but rather dependable, recurring, expanding royalties. It may take a quarter or two for new money to notice the trend line and catch on.

2. Debt. Cash on hand does not pay off debt. Yet cash on hand can balance debt. If we held 20 million in cash and 20 million in debt would the debt still be scary? Of course the plan is to pay off debt AND raise cash on hand, however I think you see my point. As the debt is lowered and the cash is increased our real book value increases - and that will directly affect share price - and directly benefit shareholders.  Yes it would be different if it was being used to fund operating costs - like in the past - then we were literally only "buying time". Since we only have inventory - and own few other physical assets - cash is even more important to demonstrate our substance.

Strategic Weapon
With Prevost no longer mentioned after the Markman, and with the defendants sanctioned for their tactics and clinging to the one year rule, one might guess that through their eyes the best option left is to simply outlast GreenShift.   IF this is the case - then cash-on-hand becomes GreenShift's strongest strategic weapon. Cash-on-hand is the biggest club one has to beat down the morale of the "we can out last 'em, lets wait them out" pool of defendants. Nothing says "we got all the time in the world" like a huge cash reserve.  In my opinion, nothing will move the defendants to settlement faster than an increasing, meaningful cash reserve.

Conclusion
If dilution is happening at a limited rate [less than the rate of increase of earnings per share], and if the assets gained are used to increase the intrinsic book value by directly decreasing debt and increasing cash on hand - then I would argue that it may very well benefit shareholders in the mid to long term. If, as a strategic weapon in the litigation; an increasing, meaningful cash reserve begins to precipitate significant settlements, then it may benefit shareholders immediately.

SkunK

New Order

2011-12-02T19:32:00.000-06:00

See Here
SkunK

On the Brink - Within 60 Days?

2011-12-02T12:16:00.002-06:00

Looks like the 5th GreenShift COES Patent may be coming closer to being allowed than even I had thought. I had reported earlier that the examiner had used the telly to tiddy up a tad. Now it appears that the last correspondence dated the 28th of November shows a clear path to allowance.

It appears the examiner sets out the specific (minor?) modifications needed for allowance on pages 2 and 3 in bold. Hopefully the changes are ones we can live with - and still protect the invention and those who hold a valid license.
0
1
2
3
4

Sorry for the one link per page but nothing handy in this device I am using will combine the PDFs for me.

SkunK

Max

2011-12-02T10:19:00.001-06:00

As you can see Max vs GS Agrifuels has been covered in a recent blog HERE. The background here is important: Here from the 2009 Annual report p. 19:

First GS Agrifuels files this:

The Company’s GS AgriFuels subsidiary is party to the matter entitled GS AgriFuels Corporation v. Chaykin, et al. The action was filed in the Supreme Court of the State of New York, County of New York, on February 2, 2009. The Complaint seeks damages for defendants' fraudulent misrepresentations, tortious interference, breach of acquisition agreements and related claims relating to the sale by the defendants of the stock of Sustainable Systems, Inc. (“Culbertson”) to GS AgriFuels, and arising from the disclosure by the defendants that Culbertson owned its Culbertson, Montana oilseed crushing facility when in fact Culbertson merely held the right to purchase the Montana facility at the time of the acquisition by GS AgriFuels; the failure to disclose by the defendants that Culbertson’s right to purchase the Montana facility, as well as any investment made in the Montana facility, was subject to forfeiture within months of entering into the acquisition agreements with GS AgriFuels; and, the provision by the defendants of materially false financial statements.

Next Max, et al files this and it gets dismissed:

The defendants served a separate action entitled Max, et al. v. GS AgriFuels Corporation, et al. in the Montana Fourth Judicial District Court in response to GS AgriFuels’ New York complaint; this Montana complaint was dismissed in January 2010.

Next GS AgriFuel's motion for Summary judgement is granted:

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. During 2008 and 2009, three of the former shareholders of Culbertson, corresponding to about 60% of the former shareholders’ prior ownership interest in Culbertson, entered into settlement agreements pursuant to which has all parties have been released from all obligations under the relevant acquisition agreements and otherwise.

********************
May of this year Max and company filed again here:
Court Docket
Here list of documents
HERE is where they voluntarily withdraw their own complaint in July.

********************
Now in November Max and company filed again - seems same as previous filing that was withdrawn Court Docket
Court Conference scheduled HERE
Case put in a Pilot Project HERE
********************

My opinion of this business? I see no filing of a complaint. Why is that? Why would someone sue another party but fail to file a complaint? Why would they then withdraw the case and then wait a couple months and again file the same thing without a complaint? The litigation filed in May goes two months and then is withdrawn - no complaint is filed. The litigation in November is filed the same way and the first judge just declined the case because the case is similar to the one voluntarily dismissed. Until I see a complaint filed, my opinion borders on this being a harassment filing by a party that has lost previous litigation.

Although I might be accused of getting out my tin foil hat, I cannot help but comment on the fact that this Agri-Fuels issue has been a recurring theme of (what I believe to be) a single poster on Yahoo over the years. (Please . . read carefully. No, I did not just say all Yahoos posting as self-described victims were the same person :~)). In any case, the victim-hood mentality developed from expecting a big payoff from selling the Seed Crushing Plant to Agri-Fuels, (even though they appeared to have sold it to Agri-Fuels without owning a clear title) explains to me both the tone and the tenacity of the negative Yahoo posts - from that poster - over the years. To put it very simply, my gut feeling - for some time - is that one of those with a direct or family interest in these Seed Crushing related legal suits is a negative poster on Yahoo.

SkunK

Fagen Litigation - nothing new as of 8:15am cst
Patent Litigation - nothing new as of 8:15am cst

Another SkunK Sales Lead

2011-12-01T16:28:00.000-06:00

REX American Resources Corp. reported a 20.3 percent increase in net sales and revenues compared to the previous quarter.

The company plans to add corn oil extraction at both plants, which should help increase profitability, he added.

See Here

SkunK

GreenShift Motion Granted

2011-11-30T14:07:00.001-06:00

See Here

SkunK

GPRE Presentation

2011-11-30T12:54:00.001-06:00

The GPRE presentation starts at about 6:00. Corn Oil is mentioned in the 8th minute. This is a limited ten minute presentation followed by a question and answer period. My summary below reflects what GPRE presented HERE:
*********************************
They use almost 2% of the U.S corn production. The blenders tax credit goes to the oil companies that do the blending - and can save the customer about 4.5 cents per gallon. Ethanol plants do not get any government money. Ethanol production is now competitive with [cheaper than] gasoline and taking away the 45 cent/gallon blenders credit the end of this year would not hurt GPRE. The oil companies now produce very low octane gasoline and need the 10% 113 octane ethanol to make the minimum 87 octane regular grade.

Owning 9 Ethanol Plants - GPRE has an annual ethanol production capacity of 740mmgy out of a total capacity of 13.2 Billion gallons - (or about 5.6% of the Ethanol Industry.) Quote:

"Produce over 100 Million pounds of corn oil as a byproduct of the process. This has been a very advantageous investment for us."

SkunK

GPRE to Present

2011-11-29T13:09:00.002-06:00

Green Plains to Present at the Baird 2011 Clean Technology Conference

OMAHA, Neb., Nov. 28, 2011 (GLOBE NEWSWIRE) -- Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) announced today that Jeff Briggs, Chief Operating Officer, will present at the Baird 2011 Clean Technology Conference in San Francisco on November 30, 2011.

Green Plains' presentation will take place at 11:00 a.m. ET and is available via webcast. Interested investors should utilize the following link to access the live broadcast of the presentation or follow a link from the Company's website at www.gpreinc.com. Please allow time to register for the event after you have navigated to the webcast link. Parties interested in listening to a replay of the presentation can use the same link as the live webcast: http://www.wsw.com/webcast/baird27/gpre/
*********************
GPRE presentations have always been important since they are presently GreenShift's biggest customer. However their corn oil percentage increase from the 2Q to 3Q closely mirrored the percentage increase in GreenShift revenues over the same period. Therefore, their detailed numbers may be a good bellwether for GreenShift's 4Q revenues. I suspect that as GPRE's COES units mature and the easy de-bottlenecking is behind us, the GreenShift gowth percentage, with new units coming on line at least through the 2Q of 2012, will next year outpace that of GPRE's. {That is unless GPRE aggressively pursues Method II} But for the time being, the GPRE's numbers should be very helpful.

SkunK

Minor Home Page Update

2011-11-29T10:31:00.001-06:00

The 3Q was just recently added to the GreenShift home page - lower right hand quarter.

SkunK

Minor Litigation update

2011-11-29T00:44:00.000-06:00

Request for extension HERE
Proposed Order HERE

SkunK

GERS Chart Day!

2011-11-27T00:57:00.005-06:00

The Chart above highlights the tremendous growth in revenues in the last quarter. The part of the red bar that sticks above the blue bar is gross profit. If you click on these charts they should get big enough you don't have to squint.

Above you can see in the recent 3Q a dollar of revenue costs GERS about 68 cents. That is not our best - but better than over dollar a year ago.

Cash and Receivables make up a large part of total current assets. Note that although cash continues to rise - at a slower rate - Receivables jumped significantly in the 3Q.

Data Source HERE

Why put Revenues and Shares Outstanding in the same chart? Why not? Will revenues climb at a rate fast enough to offset a possible increase in shares outstanding? That's a question for you to answer. . .

GLTA Investors

SkunK

ICM AOS Published

2011-11-26T00:31:00.003-06:00

The SkunK recently gave you a heads up that the ICM AOS "patent pending" was due to be published. I now believe it was published on Thanksgiving Day - November 24, 2011.

BIO-OIL RECOVERY SYSTEMS AND METHODS

Like much of the additive competition - this appears to be an additive that is mixed in to break the oil free. What makes this a little different is the emulsion breaking additive is a polar protic solvent. That means ethanol or glycerol. I have read a few patent applications over the years but this one is a bit hard to follow. Not complex - hard to follow. I'll see if I can SkunK it down a bit:

It seems they heat the ethanol and mix it with the emulsion. The oil can then be recovered by gravity - Either by letting it set or centrifuge.

Here is some of the letters between USPTO and ICM found in the public PAIR:

USPTO 9 Page LETTER

Let me just show you two quotes that caught my eye - Please feel free to read the whole thing, it is interesting. Just remember that the ICM application has a total of 20 Claims

SkunK

I think quote in the application describes some of GreenShift's other additive competition:
"Other conventional methods may use surfactants, such as polysorbate 80, which can adulterate the resulting co-products, such as animal feed, such that these co-products are no longer acceptable under the Generally Regarded As Safe (GRAS) guideline."

From the 1620's SkunK Archives

2011-11-24T07:43:00.003-06:00

Ye Overseas Colonies Doing Well. Although these Pilgrims recently experienced a slight to moderate case of drought and famine, they now appears, to those with foresight, to be a good long term investment. Ye ol' SkunK predicts they likely will become among ye greatest nations to have ever been blessed on this earth. Although I sees occasional tribulations along ye future road, many blessings to those who invest here with prudence. SkunK long range predictions include a single nation of over some three-hundred millions of free souls, spreading out from this Atlantic Sea - to wherever the next unnamed Ocean beings. Courage and stout resolve may be required to hold the reins steady into the tempering head winds of providence. (See mine disclaimers far below)

Bill Bradford, [SkunK News Network (SNN) reporter] files this on site report of preparations for a 1621 feast of plenty:

"They began now to gather in the small harvest they had, and to fit up their houses and dwellings against winter, being all well recovered in health and strength and had all things in good plenty. For as some were thus employed in affairs abroad, others were exercised in fishing, about cod and bass and other fish, of which they took good store, of which every family had their portion. All the summer there was no want; and now began to come in store of fowl, as winter approached, of which this place did abound when they came first (but afterward decreased by degrees). And besides waterfowl there was great store of wild turkeys, of which they took many, besides venison, etc. Besides, they had about a peck a meal a week to a person, or now since harvest, Indian corn to the proportion. Which made many afterwards write so largely of their plenty here to their friends in England, which were not feigned but true reports."

**********************

Happy Thanksgiving to you and yours

SkunK

PS The Pilgrims held an even greater Thanksgiving celebration in 1623, after a switch from communal farming to privatized farming, a fast, and a refreshing 14-day rain resulted in a larger harvest.

Little Things that may be HUGE

2011-11-23T11:22:00.006-06:00

The current market price for corn oil is about $2.80 per gallon. [Down from recent highs, but obviously enough for GreenShift to become profitable.]

Notwithstanding the impact of new license agreements that we may enter into or fluctuation in the market price for corn oil, we expect that our quarterly results of operations will continue to improve sequentially at least until the second quarter of 2012 as all of our existing licensees commence and achieve full production. ["will continue to improve sequentially" is some of the most important language in the report - for me. Note however that they speak of "quarterly results of operations" - not net income. The reason is below.]

We expect to continue incurring substantial costs in connection with our ongoing litigation for infringement of our patented corn oil extraction technologies. These costs have increased during the second half of 2011 and are expected to continue to increase into 2012 in advance of trial, and as we expand our litigation to protect the competitive advantage of our licensees by prosecuting additional producers and other parties infringing our patents. [I believe that the payment due to the main patent firm is a type of contingency based on the results of the litigation. However, I would also guess that GreenShift covers out of pocket expenses such as travel, per-diem etc. They might also have a more conventional payment setup with all the associated firms working with the main patent firm. Experts in various fields will be brought in for disposition and trial to support the GreenShift case. The real cost of flying someone to Kansas to subpoena the CEO of ICM would also be included. Together these are the "Professional fees" that will be a significant cost moving forward and appear to be a GreenShift responsibility. To restate: I would guess that yes - the Patent Firm is on a contingency, however they are ponying up (or is it poneing?) with their labor. Their out of pocket expenses, the peripheral lawyer fees and services and experts are professional fees - and are a GreenShift responsibility. The patent firm is risking the cost of their labor, however they are not a financing outfit - so cash expenses remain a GreenShift responsibility]

". . . as we expand our litigation to protect the competitive advantage of our licensees by prosecuting additional producers and other parties infringing our patents." [This aggressive language is used twice in the 3Q - and never in the 2Q. This is as close as I could find in the 2Q - which does not flash the immediacy:

"The Company intends to take all necessary steps to bring infringement of its patents to an end, including filing additional lawsuits involving any and all infringing use of the Company’s patents."

This tells me that more litigation is on the way - but more importantly - confirms (to me) that decision makers at GreenShift and the Patent Firm share at least some of the Post-Markman confidence I have come to enjoy. :~)]

SkunK

Fixed Debt Service

2011-11-23T01:37:00.001-06:00

I wanted to address the fixed debt service by looking over the last three years 3Qs. Just looking at the first one - this year - one may feel a bit of concern. Sure we are making money, but how do we pay off $32M by the end of next year? Fair enough. But now look at the two previous years? One would likely choose our present circumstances over the previous years - and still somehow - we made it through those previous years and are still standing tall.

What happened? One can see from last years (2010) 3Q that the $41M originally due this year (2011) was pushed out to next year (2012). Some $17M of the total was paid off and much of what was due in 2011 - is now due in 2012. Since this took place over the last couple years I would be surprised if - working with our creditors - it does not happen again. That is unless the books are to a point that more conventional financing can finish off the rest of the debt. The thing about steady and increasing profits - are they are just the thing to service a conventional debt.

3Q 2011
The following chart is presented to assist the reader in analyzing the Company’s ability to fulfill its fixed debt service requirements (net of note discounts) as of September 30, 2011 and the Company’s ability to meet such obligations:
2011 1,806,322
2012 30,621,973
Total minimum payments due under current and long term obligations $32,428,295
************************************************************

3Q 2010
The following chart is presented to assist the reader in analyzing the Company’s ability to fulfill its fixed debt service requirements (net of note discounts) as of September 30, 2010 and the Company’s ability to meet such obligations:
2010 $7,077,489
2011 $41,425,518
2012 $39,088
2013 $39088
2014 $39088
2015 and thereafter $474,841
Total minimum payments due under current and long term obligations $49,095,112
*****************************************

3Q 2009
The following chart is presented to assist the reader in analyzing the Company's ability to fulfill its fixed debt service requirements (net of note discounts) of as of September 30, 2009 and the Company's ability to meet such obligations:
2009 $26,749,698
2010 $6,013,638
2011 $8,483,466
2012 $377,250
2013 and thereafter $173,902
Total minimum payments due under current and long term obligations $41,797,953

SkunK

GSEN - No Basis

2011-11-23T00:40:00.002-06:00

NEW YORK, Nov 22, 2011 (BUSINESS WIRE) -- GS EnviroServices, Inc. (otcqb:GSEN) today announced that it is aware of no basis for the recent increase in the trading volume of the Company's common stock.
SEE HERE

SkunK

Note the info at the bottom:
For GS EnviroServices, Inc.
GreenShift Corporation
Mary J. Carroll
Vice President Administration

2011-11-22T11:07:00.000-06:00

On September 30, 2011, the Company’s chairman waived $411,061 in deferred salaries due from prior years, $138,001 in unreimbursed expenses, and $112,020 previously assigned to an employee of the Company. Various other related party employees waived an aggregate of $133,101 in deferred compensation from prior years, and one former employee (a family member of the Company’s chairman) agreed to accept payment of $92,337 in deferred salaries due from prior years in the form of restricted Company common stock at $0.11 per share. [Payment in stock at high end of today's market price - that is new] These transactions collectively reduced the Company’s liabilities by about $2.4 million at September 30, 2011. [I believe this real contribution is listed as "Gain (loss) on extinguishment of debt" - $2,204,238 under "Other Income" I think about another 200K was saved in future interest due to eliminating that debt and that is how we get to "about 2.4 million at Sept 30, 2011".]

P23
*********************************************
These benefits correspond to increased ethanol producer income ranging from about $0.08 to more than $0.20 per gallon of ethanol produced, depending on the extent to which the producer uses our patented and patent-pending extraction technologies, and ethanol producer paybacks of less than 1 year at current market prices. [With that kind of payback for a one year return on investment - No wonder the market penetration estimates keep going up for corn oil extraction. Full market penetration of Method I in the next 2-3 years will be the economic reality in my humble estimation.] No technologies have been developed, commercialized and made available to corn ethanol producers in the history of the ethanol industry that begin to approach these results.

More than 15% of the ethanol industry has licensed our patented and patent-pending corn oil extraction technologies.
**********************************************

SkunK

3Q! Profit, Sweeeeeet Profit

2011-11-22T00:48:00.003-06:00

Plan of Operations
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.

We were awarded contracts to design, build and install extraction systems for our licensees after extensive due diligence and third party review, including a state of the art new corn oil recovery facility for Sunoco, Inc. We received two new patents during 2011 that we believe substantially strengthen our issued patents and ability to protect the competitive advantage of our licensees. We expanded our technology portfolio by filing new patent applications and pressing forward with new technologies [interesting, but is it Method II? Or III? or "event-driven systems integration" - what?] designed to further enhance the profitability of our licensees. We reduced our debt to YA Global and its affiliates by about $7 million to about $26 million, down about 21% from the balance due at the start of 2011. We produced about $2.1 million in operating income during the nine months ended September 30, 2011 (excluding the impact of one-time performance bonuses), up from the $4.3 million in operating losses incurred during the first three quarters of 2010. And, we generated about $150,000 in net income during the third quarter of 2011 [Note: net income from just corn oil was $150,000 for 3Q] excluding about $2.5 million in non-recurring other income resulting from our reduction and elimination of liabilities during the quarter.

P. 26
***************************
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 existing and prospective licensees. [What is event-driven systems integration? It is used three times in the 3Q - twice in the 2Q - should we associate it with the "new technologies" discussed above???]

SkunK

So much here in this 3Q I will take a chunk at a time. My comments until further notice will be tru-blue and bold. I just checked pacer, no litigation update.

I cannot find the post, but if memory serves, Slash predicted like $6M in revs on one of the boards? If he did - congrats.

Wait'n

2011-11-21T11:58:00.003-06:00

As we are waiting for the 3Q, just a reminder that the average date of release for the GreenShift 3Q over the last three years is November 21st. So today would be an average release date. I will be off the grid for the rest of the day - starting in a few minutes - so don't worry - I did not fall asleep with my chin on the space key - this time.

Good Luck to all Investors,

I'll expect to have some 3Q comments tomorrow . . .

SkunK

Positive Movement on Possible 5th COES Patent

2011-11-20T01:06:00.002-06:00

I recently projected (guessed) that GreenShift Patent Application 20080110577 "Method and systems for enhancing oil recovery from ethanol production byproducts" might be the next - the 5th GreenShift COES patent. Recent correspondence on the USPTO public pair suggests we have some positive movement. It seems that we are down to working on details over the phone with the examiner and it seems that portions of the Application are set to be allowed. I would think it may take a while for the entire application to be allowed - but it seems we are moving along in the right direction.

See Here

SkunK

Common Stock Outstanding

2011-11-19T10:00:00.006-06:00

As of August 8, 2011, there were 13,903,397,418 shares of common stock outstanding. FORM 10-Q (2Q)

As of May 12, 2011, there were 11,652,841,863 shares of common stock outstanding. FORM 10-Q (1Q)
As of March 30, 2011, there were 15,234,104,393 shares of common stock outstanding. (10K/A)

As of March 30, 2011, there were 15,234,104,393 shares of common stock outstanding. (10K)

GreenShift has reported to the SEC its shares outstanding four times in calender year 2010. I copy/pasted the numbers from the filings in sequence of the "As of" dates - as well as the link. One may notice that the highest number of shares outstanding was in March with a significant drop into May. The number went up again in August, but was still below the March 30th high. Whether or not significant dilution has taken place is important to shareholders. Standing in August - if you look back to May the answer is yes. If you look further back to March the answer is no. An even longer time frame might give us another yes. When we get the new numbers (on Monday?) we will see where we officially stand - but remember the time-frame is important when comparing shares outstanding. In my opinion - if significant dilution is taking place this year - then the OS will have to be reported significantly above the 15.234M shares (postR/S) reported in March of 2011.

SkunK

Here are the recent dates we got the 3Q.

2011 - Nov 21?

2010 - Nov 22

2009 - Nov 23

2008 - Nov 19

NEW GreenShift COES Patent App Puplished

2011-11-18T18:43:00.003-06:00

Notice the 17 November 2011 publishing date in the upper right corner. This was filed in May and includes David Cantrell as first inventer, and GS CLEANTECH CORPORATION as assignee.

This is one of many GERS related patents and patents pending named:
"Methods Of Processing Ethanol Byproducts And Related Subsystems"

See Here

SkunK

Granted

2011-11-18T17:01:00.000-06:00

GreenShift motion granted.
See Here

SkunK

Ashland Update

2011-11-17T16:56:00.000-06:00

Ashland Water Technologies, a commercial unit of Ashland Inc., has developed two new corn oil extraction aids, which will provide ethanol producers with more options for increasing their corn oil yields, the company reported November 15.

SEE HERE

SkunK

BioFuel Energy 10-Q

2011-11-15T13:04:00.001-06:00

During 2011, the Company has been exploring the possibility of producing corn oil as an additional co-product at each of its two facilities. This would require the installation of corn oil extraction systems at each ethanol plant. On October 28, 2011, the Company’s Operating Subsidiaries received funding under an operating lease each Operating Subsidiary entered into with Farnam Street Financial, Inc. These operating leases will provide the funding to pay for most of the costs of installing the corn oil extraction systems that each Operating Subsidiary is in the process of installing in its respective plant. The Company expects to begin generating revenues from corn oil sales beginning no later than the first quarter of 2012.

See Here

BioFuel Energy has already reported their results - the actual official detailed filing was today.
This company is a self-reported GreenShift Customer - from their previous conference call.

SkunK

Ruling on Motion to Seal

2011-11-15T10:38:00.002-06:00

"CleanTech’s motion to seal . . . is GRANTED IN PART AND DENIED IN PART . . ."

SEE HERE

SkunK

I hate to jinx it by saying it out loud, but it seems the Court rulings generally (meaning with minor exceptions) over the last month or more - are being signed on Mondays and then posted on Tuesdays. This one is dated the 14th and posted today.

Notification of Late Filing

2011-11-15T10:08:00.000-06:00

". . , will be filed on or before the fifth calendar day following the prescribed due date."

See Here

SkunK

ICM's New Patent Pending

2011-11-13T11:25:00.011-06:00

As of 3 November 2011 ICM has a new patent pending published called "ROTARY TORREFACTION REACTOR" HERE

The SkunK has been on the look out for the publishing of the "patent pending" ICM AOS system. As you may be familiar there is a normal time period where the patent has been submitted but not yet published - and it appears we are in that period now since I can find no record yet of the AOS system. ICM announced the submission of their application on May 17. When one does a search using "ICM, Inc" as "assignee name" in a patent application search they find these 5 applications, none of which seems to be the AOS - yet.

Importantly, the patent application ROTARY TORREFACTION REACTOR, described below was filed two weeks (3 May) before the AOS application was announced - and here it is already published. Therefore we should expect to see the publishing of the AOS patent pending system in the next few weeks - unless of course they run into some problems . . .

Here is the best summary I could find on what this thing does, links to concepts below:

"The reactor, along with the network of conduit 175, rotates on its horizontal axis. Biomass introduced into the interior of the reactor comes into contact with the conduits while being tumbled. The tumbling action, and the slight pitch of the axis, carries the biomass through the length of the reactor while roasting the biomass at controlled temperature, and upon discharge from the reactor, the biomass material has become torrefied."

TORREFACTION
Pyrolysis

SkunK

Could the "biomass" used here be DDGs?? Certainly, but that does not seem to be the focus. DDGs are now a valuable feedstock with a worldwide market and are now far from the original "waste" product they were considered to be at the very start of the industry.

PS. Remember not so long ago when silly arguments were being made by seemingly serious people that GreenShift COES used centrifuge technology over a hundred years old and was therefore obvious and unpatentable????? (Haven't heard it lately!) Well, the device above seems to be just a combination of simple machines in common usage since the middle ages. Heat has been used as a process catalyst since the stone age. For some reason I do not hear the same line of logic applied. lol

PSS Just so you know I'm not blow'n smoke Here is an example of the argument (p.1) to which I refer in the PS above:

"Westfalia has been developing, manufacturing, and delivering products used for mechanically separating liquids or liquids and solids, including several different types of centrifuges, since 1893. Westfalia centrifuges are used in a wide variety of industries to separate oil from other liquids. For decades, these machines have been operating in processes substantially identical to that claimed in the ‘858 Patent. Consequently, CleanTech’s purportedly novel oil extraction technology has been known and used for decades."

Since this argument has now seemingly all but disappeared from the filings, PRs and in the comment sections, I tend to think it may have just been directed towards potential [or to stiffen the resolve of weak-kneed current] customers, rather than a serious legal argument.

3Q Revenues

2011-11-12T00:42:00.002-06:00

I took the poll results and assigned a number to each selection between the top and bottom number. For example I assigned $4.5M to the most popular selection - $4-$5M. For "$6M or more" I assigned 6.5M. For "$2M or less" I assigned $1.5M. For BK I assigned zero. I then multiplied each by the percentage earned, added it together and divided by 96. (Due to rounding errors the percentages only added up to 96)

Are two heads better than one? Well then 140 heads should be spot on - right? In any case our combined revenues prediction for the 3Q is $4,473,958

Up over 40% in one quarter? Well we will soon see how close we came.

SkunK

GreenShift Filing

2011-11-12T00:05:00.001-06:00

New GreenShift filing to make motion under seal - to keep medical issues private.

". . . CleanTech Corporation (“CleanTech”) respectfully moves this Court for leave to file its Motion to Stay Time to Review Deposition and Serve Errata Sheet under seal. This motion contains confidential medical information and therefore, should not be made public."
SEE HERE

SkunK

GERS Scheduled Ex-Dividend?

2011-11-11T07:58:00.008-06:00

UPDATE
This so called "dividend" below may be sourced only by the computer generated article below. Good post by the moderator, Olie77 at I-hub here. I was starting to wonder why no GERS filing of a dividend at the SEC? Did the SkunK get "punk'd" by a computer bot? Oh well . . . :~) starting to look like I did.

Thu, Nov 10, 2011 08:00 – Greenshift Corp. (GERS: OTC Link/FINRA BB) – Scheduled Ex-Dividend – Greenshift Corp. has announced a dividend ex-date for (GERS: OTC Link/FINRA BB). Greenshift Corp. is scheduled to disburse a Reverse Split dividend of 0.001 shares on Fri, Nov 11, 2011 to shareholders of GERS. You may find a complete list of dividends at otcmarkets.com.

SEE HERE

SkunK

GreenShift has obviously held the reverse split until just before the 3Q. Judging by the great news we have been tracking for days and weeks concerning first the litigation (Prevost, Markman, defendants sanctioned) and large production of our major customers (GPRE, BioFuels) we should expect great news in our 3Q as well. (I expect our 3Q soon, it may well be Monday or even Tuesday to give the R/S a chance to work out the bugs and the old adage of Good News at the start of the week is likely to play here.) Why not have the R/S AND the 3Q on the same day? Splits always mean at least a day of chaos as accounts are updated throughout the day. Expect a 'loss of focus' as shareholders find their accounts frozen, then unfrozen as the change works its way through the system.

No matter how much heads up we had and no matter how many times they have gone through it, expect the r/s to traumatize some. Expect to hear "I used to have "a hundred one dollar bills" and now all I have is "a hundred dollar bill"". Expect it and be glad they did not put out the 3Q at exactly the same time.

$18 Million Jury Verdict in Biofuels Enzyme Patent Suit

2011-11-10T19:02:00.002-06:00

See all at link below. Also note this GreenShift reference in second to last paragraph:

"Biofuels patent litigation has been heating up recently. GreenShift has been the most active, asserting an ethanol processing patent against a host of ethanol producers in eleven cases consolidated in Indiana."
SEE HERE

SkunK

Thanks to Selfactualize on I-hub Post here
Thanks to Slash for his Yahoo post here

8K

2011-11-10T13:20:00.007-06:00

Effective at close of business on September 9, 2011, GreenShift Corporation (the “Company”) filed with the Secretary of State of the State of Delaware a certificate of amendment to the Company’s certificate of incorporation to give effect to a 1-for-1000 reverse stock split. The Company’s common stock will begin trading on a post-reverse split basis on November 11, 2011. The post-reverse split common stock will be listed under the symbol “GERSD” for twenty business days, then will revert to “GERS.”

See Here

SkunK

Acceptance time for SEC was 20111110141339. Or 2:13 P.M. EST. Looks like I checked it just after that and got it posted seven minutes later (I work CST no matter where I am).
I expect 3Q soon.

BioFuel Energy Reports 3Q

2011-11-09T18:39:00.003-06:00

"We also successfully executed on planned improvements during our fall shutdowns and are on track to have corn oil extraction on-stream at our facilities by the end of the year."

SEE HERE

Company Press Release (thanks to slash for link)

SkunK

This company is a self-reported GreenShift Customer - from their last conference call.

United Ethanol November Newsletter

2011-11-09T12:55:00.003-06:00

"The weak U.S. dollar and resulting foreign demand have enabled the blenders and exporters of ethanol and corn oil to continue aggressive buying practices."

"This representative suggested a pH adjustment to our syrup which has added production to our corn oil extraction system. It was a relatively easy process change, we did a little research to prove the theory and then implemented the process change during our fall shut down. This is one of many changes that will add revenue to United Ethanol long term."

“We’ve also installed an automated valve on our corn-oil extraction system unit with the intention of helping us capture more efficiencies. A new product is being tested as an emulsion breaker to replace
what we’re currently using in corn oil recovery. Estimated savings from this alteration is $4,000 per month."
See Here

SkunK

~~Wild~~ Speculation:
"We recently installed a controlled cavitation unit on a trial basis to see if it will provide production benefits. This unit is supposed to optimize particle size of the corn before fermentation, which should equate to additional yield. The trial will wrap up by the end of 2011, and we’ll have data to help us decide if this unit should be part of our production process long term."

GreenShift has a line of "Desiccation Cavitation Technology (page 8) HERE", but no word about Cavitation recently and no idea if this is related. GreenShift has the Tornado Generator that provides the Desiccation:

"GreenShift's patented Tornado Generator™ is a remarkable technology that accelerates compressed air to supersonic speeds to almost instantly grind, flash desiccate, atomize and homogenize solids and liquids into micron sized powders."

If you are one who likes to put together puzzles then you may want to see if this piece fits. "This unit is supposed to optimize particle size of the corn" may be a direct reference to the Tornado Generator's ability to produce "micron sized powders".

**************
Thanks to Slash for heads up on the Newsletter.

Another Patent Pending

2011-11-09T00:29:00.001-06:00

GreenShift has another patent pending concerning Method of Blending Fuels and Related System . This one was just published 29 September 2011 and now hit the USPTO site.

GreenShift has another related patent pending with the same name and related to this one here published on 1 January 2009. Nice to see the business of invention and their protection continues throughout the litigation and the COES build outs..

SkunK

Defendants Sanctioned, Defendants Pay

2011-11-08T11:15:00.001-06:00

Reposted with New Prequel

In this blog HERE SkunK goes gonzo about defendant bush league tactics holding back information during discovery. GreenShifts brief is here. The long ruling today (below) has the Judge come to much the same conclusion using (to state the obvious) a much finer usage of the Queen's English. "Sanctions" (More than a penalty flag for offensive holding - this is like a fine from the NFL Commissioner's office!) were also given to defendants - there is no way defendants can twist what THAT means - cause they have to sign a check. Under "Analysis", Judge says both sides agree that these Cantrell documents are important and may be central to the case. That is a confirmation for me that the argument has moved past Prevost - the former "key" defendant argument. Now it has basically moved on to invalidity due to breaking the one year limit on offer to sell. Although we have not seen the GreenShift argument - GreenShift has denied that the documents are relevant to the patents. From that the SkunK assumes the GreenShift major argument will be that GreenShift did not have anything ready for patent and the whole purpose of going to an Ethanol plant was to experiment and develop a final system. This is a standard major exemption for the one year rule. Defendant's documents seem to prove the SkunK's case (I'll call it the SkunK's case since I made it - I would expect GreenShift lawyers to make it a lot better at the right time.) with the word "test/testing" in nearly every written sentence. Appearing some 45 times in a few documents that the "defendants" offered.
*****************
*****************
Although the court has not granted CleanTech all the relief it sought and has found counsel’s instruction not to answer improper, it has vindicated CleanTech’s position that the defendants improperly withheld critical documents on baseless grounds. That conduct triggered all the disputes now before the court.

The court awards CleanTech, and against the defendants jointly and severally except for Adkins Energy, one-half its reasonable fees in drafting the motion for protective order, the brief in support, and supporting declaration. CleanTech shall submit a statement of those fees (with supporting documentation) to the defendants within 14 days of this order. The defendants (except for Adkins Energy) shall, within 21 days thereafter, either pay those fees or file with the court an objection to CleanTech’s fees that demonstrates why the fees are unreasonable in whole or in part. CleanTech’s response and any reply by the defendants shall be filed according to Local Rule 7.1. The court expects the parties to use the defendants’ 21-day period to negotiate in good faith over any dispute about the amount of the fees in an effort to avoid the need for the court’s intervention.

Long order, Great Reading HERE

SkunK

Prevost slammed down, ambush fought through; The defendants now have the checkbook open. Still a ways to go, but justice slow, justice sure . . .
********
Dig this one, check out the 1st footnote. Can you even see left field from that footnote? Why do I hear twilight zone music in the background?

*************
Finally See Here

United Ethanol Moves on

2011-11-08T01:26:00.000-06:00

In addition to producing ethanol for fuel, distiller’s grain for animal feed, and capturing carbon dioxide for use in the food processing and beverage industries, United Ethanol incorporated corn oil extraction in January, 2011. Corn oil from United Ethanol is shipped out for use in biodiesel production.

“By adding the carbon dioxide capturing process and corn oil extraction into ethanol operations at United Ethanol, we are providing more streams of income to the plant and making sure no part of the corn kernel goes to waste,” added Cramer. “We look forward to a bright future in Milton, Wis.”

See Here

SkunK

Accident at Lincolnway

2011-11-08T01:22:00.000-06:00

We wish the injured workers and their families a speedy recovery and well wishes.
see Here

SkunK

Corn, LP Up in 3Q

2011-11-07T10:12:00.000-06:00

Thanks to slash for this find HERE

When major, multiple customers report great news in corn oil for their latest quarter it cannot help but fuel speculation about our own 3Q and the march to profitability. How far are we? We will soon find out.

SkunK

Been offline over the weekend and will also be the rest of the day . . .
Good Luck, things normally happen when I am away.

GRANTED IN PART

2011-11-04T21:45:00.000-05:00

. . . now determines the motion should be GRANTED IN PART and DENIED IN PART. . .

see here

SkunK

This is an order in response to a previous sealed motion.

GreenShift Sales Department Alert!

2011-11-03T12:59:00.000-05:00

Looks like NuGen is in the market for a corn oil extraction system! Just another free lead coutesy of the SkunK to the GreenShift Sales Department!
**********************
6.7 New Business or Investment.
CFC agrees to, and will cause NuGen to, not pursue new business or investment opportunities other than the ongoing NuGen projects relating to a grain conveyance system, potential amendments to the ethanol marketing agreement and investigation as to a corn oil extraction system. Any contracts entered into on such matters prior to Closing shall require REX’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, until (i) closing of the transactions contemplated by this Agreement or (ii) the Parties agree to terminate that certain letter agreement between them dated June 21, 2011.
Page 15 see here
*******************
On November 1, 2011, REX NuGen, LLC, a wholly owned subsidiary of REX American Resources Corporation ("REX") completed the acquisition of 51,051 Class A membership interest units of NuGen Energy, LLC ("NuGen") from Central Farmers Cooperative ("CFC") pursuant to a Unit Purchase Agreement dated July 25, 2011 (the "Unit Purchase Agreement") among REX and CFC, as extended and amended. The Class A Units purchased constitute a 51% voting interest and a 49.75% equity interest in NuGen (the "Purchased Units"). Following the purchase, REX owns all the outstanding Class A membership interest units in NuGen, representing a 100% voting interest and a 97.55% equity interest in NuGen. NuGen owns and operates an ethanol refinery and production facility with an annual nameplate capacity of 100 million gallons located in Marion, South Dakota.

REX NuGen LLC, a South Dakota limited liability company (“REX”)
and
Central Farmers Cooperative, a South Dakota Cooperative (“CFC”).

SkunK