GreenShift Corporation (OTC Bulletin Board: GERS) today announced that it has begun to produce crude corn oil at its 1.5 million gallon per year corn oil extraction facility co-located at Western New York Energy, LLC's 50 million gallon per year corn ethanol production facility in Medina, New York. Western New York Energy began operations in December 2007 and is the first operating ethanol plant in the Northeastern U.S.
"We still have to finish installing the tank farm and other infrastructure but we're going to start moving product, said Kevin Kreisler, GreenShift's chairman. "The Western New York Energy team has been very proactive. They have helped us bring the facility online on time and on budget. Their efforts should be commended.
The Western New York Energy extraction facility is GreenShift's second operational corn oil extraction facility and it brings GreenShift's total current annualized corn oil production capacity to more than 3.0 million gallons per year. GreenShift recently closed on a revolving line of credit that is sufficient to build an additional 10.5 million gallons per year of corn oil extraction capacity. These new facilities are expected to become operational in a staggered fashion over the next nine months and will bring GreenShift's annualized corn oil production to more than 13.5 million gallons per year.
Kreisler added: "Our corn oil extraction technology and the structure of our offering enable participating ethanol producers to rapidly tap into the latent value of the crude corn oil locked in their distillers grains for no investment. This both enhances and diversifies our ethanol clients' margins while favorably reducing the risk profile presented by the corn and ethanol commodity markets. We are grateful to have the continuing opportunity to bring these benefits to Western New York Energy, and we hope to earn the opportunity to do so for the owners and financial partners of many more ethanol facilities.
Importantly, given the structure of GreenShift's new revolving line of credit, GreenShift has the resources to continue installing extraction facilities beyond its first 13.5 million gallons per year by using this debt facility and GreenShift's cash flows from prior installations.
National Ethanol Conference
GreenShift's team of extraction engineers will be attending the 13th annual National Ethanol Conference during February 25-27, 2008 in Orlando, Florida, and will be available to meet with ethanol producers and their financial partners. Interested parties can schedule a meeting by calling GreenShift at 888-ETHANOIL or by emailing GreenShift at ETHANOIL@greenshift.com.
GreenShift's Focus on Corn Ethanol Production
GreenShift is focused on delivering technologies and process innovations to the ethanol production industry with a view towards maximizing the yield of corn-based ethanol production. GreenShift's currently available offerings in its ethanol program include its integral corn oil extraction and biodiesel production systems. GreenShift is also developing new technologies for application at corn ethanol facilities, including integral biomass gasification and carbon dioxide bioreformation.
Traditional corn ethanol processes convert each bushel of corn, which weighs about 56 pounds, into about 18 pounds of ethanol, 18 pounds of carbon dioxide, and 18 pounds of distillers dried grains, which contain about 2 pounds of fat. GreenShift's proven, high-yield patent-pending corn oil extraction technology intercepts the flow the distillers grain co-product from inside the ethanol facility and extracts more than 75% of the fat. GreenShift's extraction process accomplishes this in two steps that can extract more than 6.5 million gallons per year of crude corn oil from a 100 million gallon per year ethanol production facility.
GreenShift has executed contracts with a number of corn ethanol producers to ˜plug' its corn oil extraction systems into the back end of their facilities. These contracts have a minimum term of ten years and are based on the installation of turn-key extraction systems at participating ethanol facilities at GreenShift's cost in return for the long-term right to purchase the extracted oil at a price indexed off of diesel spot prices.
At current market prices, participating ethanol facilities earn about $8 million (for a 100 million gallon per year ethanol facility) per year in additional earnings that are tied to the diesel markets - for no investment. This enhances participating ethanol facilities' cash flows and helps to offset their market risk. Additionally, the use of GreenShift's technology decreases the mass of distillers grain co-product that has to be dried and therefore also reduces the ethanol facility's use of fossil fuels and utility costs.
GreenShift's patent-pending corn oil extraction technology provides participating ethanol producers with the following compelling benefits:
- increased revenue and earnings
- decreased carbon emissions and
- enhanced biofuel yield and energy balance from corn.
GreenShift's technical services staff is available at 888-ETHANOIL to answer any questions about GreenShift's patent-pending Corn Oil Extraction technology. Additional information on GreenShift's corn oil offering is also available online at http://www.greenshift.com/product_desc.php?mode=1.
GreenShift's Biodiesel Technologies
GreenShift's biodiesel production technologies leverage innovative chemical process intensification techniques to enhance reaction kinetics, decrease process time, reduce energy and raw material needs, and increase product quality. GreenShift delivers cost-effective turn-key biodiesel processing solutions that enable GreenShift's clients to proactively manage the realities of the feedstock and biodiesel markets. GreenShift's offering includes bundled process engineering, project oversight and plant management services, as well as access to GreenShift's strategic feedstock supplies, vendor financing and EPC wrap capabilities. Additional information on GreenShift's biodiesel offering is available online at http://www.greenshift.com/product_desc.php?mode=5.
About Western New York Energy, LLC
Western New York Energy, LLC was founded in 2004 and is committed exclusively to the operation of its 50 million gallon per year fuel grade ethanol plant in Medina, New York. Western New York Energy began operations in December 2007 and is the first operating ethanol plant in the Northeastern U.S. Western New York Energy is a locally owned company that is committed to its mission of developing the full potential of Western New York's renewable energy resources while utilizing industry best practices and the highest ethical standards to work with its community and business partners. Additional information on Western New York Energy is available online at www.wnyenergy.com.
About GreenShift Corporation
GreenShift Corporation (OTC Bulletin Board: GERS) develops and commercializes clean technologies that facilitate the efficient use of natural resources. GreenShift's ambition is to catalyze disruptive environmental gains by creating valuable opportunities for a great many people and companies to use resources more efficiently and to be more profitable.
GreenShift's view is that the first and best way to achieve its mission today is to facilitate the more efficient production and use of biomass-derived fuels. GreenShift does this today by developing and integrating new clean technologies into existing biofuel production facilities, by selling equipment and services based on its technologies, and by using its technologies to directly produce and sell biomass-derived oils and fuels.
Additional information on GreenShift and its current operations is available online on GreenShift's new website at www.greenshift.com.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GreenShift Corporation and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
