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GPRE Posts 91% Y/Y EPS Growth, Beating Estimates by 22%
http://www.associatedcontent.com/article/7821006/gpre_nasdaq_posts_91_yy_eps_growth.html
Despite rising corn prices in the second half of 2010, Green Plains Renewable Energy (GPRE: Nasdaq) posted 91% year-over-year Earnings Per Share growth for the full year 2010, compared to 2009,
according to a company press release. Growth in 2010 was driven primarily by flawless execution of accretive acquisitions of ethanol plants, increasing its total ethanol production capacity to a run rate of 740 million gallons per year, including its latest acquisition.
Prudent, disciplined, and intelligent commodity hedging strategies protected margins in Q4 2010, when corn prices ran up dramatically. And, the timely installation of an important new add-on technology called Corn Oil Extraction Systems ("COES"), from a technology development company called GreenShift Corporation (OTCBB: GERS) began to contribute to profit growth late in Q4 2010.
The U.S. ethanol industry is emerging from an extremely tough downturn, a downturn that began in 2007 when the investment boom of the 2002 - 2006 time period produced a glut of ethanol production capacity, as well as a run-up in the key input to the industry, namely #2 Yellow Corn. Like the computer industry of the past 5 decades, the U.S. biofuels industry is growing in waves. The industry is just now entering the second, major upleg of its growth, which will be marked by both consolidation of capacity into strong hands like GPRE, as well as the implementation of important, new value-added technologies that increase profitability.
Todd Becker, and his team at GPRE, have demonstrated a consistent track record of disciplined risk management and excellent execution skills, producing profitability both during good times and during bad. As a result, Todd and his team, have been rewarded by the capital markets with substantial, new financing in the form of increasing credit lines, convertible debt, and equity capital. The company is now well capitalized and liquid, with a year-end cash balance of over $300 Million, including unused credit lines.
... 4 more pages.
EPA to Issue E15 Label Rules
http://www.bloomberg.com/news/2011-03-10/epa-to-issue-e15-label-rules-in-next-few-months-chief-says-1-.html?cmpid=yhoo
The U.S. Environmental Protection Agency plans to issue final rules for labeling gasoline pumps that carry a higher blend of ethanol within months, Administrator Lisa Jackson said.
“We expect to issue a final rule in the next few months,” Jackson said today in testimony before the House Agriculture Committee about the EPA’s fiscal budget.
The EPA has been crafting label requirements after granting a request from ethanol producers to raise the amount of the corn-based additive in fuel for vehicles made for the 2001 model year and later. Refiners will be able to blend gasoline with as much as 15 percent ethanol, up from 10 percent.
The blend can’t be sold until federal rules are in place to ensure that so-called E15 is labeled properly at gasoline pumps. The requirements are aimed at preventing use of the fuel in vehicles that aren’t approved to handle the new blend. Some environmental groups and other opponents of E15 say they aren’t convinced labeling measures will be enough to prevent damage to engines.
“We don’t believe that a label will be sufficient to mitigate all misfueling, but we do support stronger and more detailed language on the ethanol label,” the Washington-based Environmental Working Group said in a Jan. 3 letter to Jackson. “Stronger and more detailed labels seem to us to be the next- best solution to our preferred option, denying the E15 waiver altogether.”
‘No Better Time’
Growth Energy, a Washington-based ethanol trade group that submitted the request to lift the limits on the additive, said it welcomed the EPA’s timeframe for the labeling rules.
“There’s no better time than now to move E15 into the market, considering the alternative of continuing to see high oil prices and high gas prices,” Growth Energy Chief Executive Officer Tom Buis said today in a statement. “Lifting the regulatory barriers preventing higher blends of U.S.- made ethanol from getting into the pump would start to push gas prices down right away.”
The EPA had been pressed by supporters of the ethanol industry to raise the limit to increase demand and help boost consumption for an industry that saw at least a dozen companies seek bankruptcy protection in an 18-month period.
Oil companies, automakers and environmental groups say higher ethanol in fuel may damage engines, boost food prices and worsen air quality, and that refiners and convenience stores selling fuel may be reluctant to market the new blend.
To contact the reporter on this story: Kim Chipman in Washington at kchipman@bloomberg.net
To contact the editor responsible for this story: Larry Liebert at lliebert@bloomberg.net
Breaking OUT to the UPSIDE!
http://www.associatedcontent.com/article/7723718/us_biofuels_industry_consolidating.html?cat=3
EARNINGS = 3/3/2011 After Market (UPDATED)
USDA gives green light to amylase corn production.
http://www.farmandranchguide.com/news/regional/usda-gives-green-light-to-amylase-corn-production/article_76fa060e-3f04-11e0-b12e-001cc4c002e0.html
There has been a flurry of activity during the past three weeks at the USDA on issuing regulations for genetically engineered crops.
The latest action involved the deregulation of alpha-amylase corn, which is genetically engineered to produce an enzyme that breaks down starch into sugar, which improves ethanol production. Earlier the agency had given approval, to varying degrees, to Roundup Ready alfalfa and sugarbeets.
In making the alpha-amylase corn announcement on Feb. 11, Michael Gregoire, deputy administrator for the USDA’s Animal and Plant Health Inspection Service (APHIS) said in a statement, “APHIS conducted a plant pest risk assessment and found this line of corn does not pose a plant pest risk, and should no longer be subject to regulation by APHIS.
Syngenta Seeds, Inc. had requested back in 2005 that APHIS grant nonregulated status to its alpha-amylase corn. In 2008, APHIS prepared a plant pest risk assessment as required by the Plant Protection Act, plus an environmental assessment in accordance with the National Environmental Policy Act.
At that time both of these documents were made available for public review and comment. Since then APHIS has received more than 13,000 comments.
The APHIS statement recognized that certain milling and food-processing groups have concerns about this corn variety being deregulated and potential impacts on wet-milling operations. But the agency was also pleased that these segments of the industry expressing opposition continue to have dialogue with Syngenta on research and testing efforts, and encourages these parties to continue their efforts to resolve the issues that remain.
Syngenta will market the corn seed with the amylase trait as Enogen corn seed and some of that seed will be available for this growing season.
“Enogen corn seed offers growers an opportunity to cultivate a premium specialty crop. It is a breakthrough product that provides U.S. ethanol producers with a proven means to generate more gallons of ethanol from their existing facilities,” said Davor Pisk, Syngenta’s chief operating officer said upon hearing of the APHIS decision. “Enogen corn also reduces the energy and water consumed in the production process while substantially reducing carbon emissions.”
However, not everyone was enthusiastic about the announcement of deregulation, since it raises concerns about potential contamination of food corn crops. The Union of Concerned Scientists (UCS) claims that the deregulation could have serious consequences for the U.S. food industry, with cross-contamination of non-GE corn “a virtual certainty.”
“The USDA’s decision defies common sense,” said Margaret Mellon, director of UCS’s Food and Environment Program. “There is no way to protect food corn crops from contamination by ethanol corn. Even with the most stringent precautions, the wind will blow and standards will slip. In this case, there are no required precautions.”
UCS scientists claim that one kernel in 10,000 could “affect viscosity in standard food processes,” meaning that contamination could cause “corn snacks to be too fluffy to fit in a standard bag, corn batter to be too thin to coat corn dogs and corn bread to be too soggy in the middle.”
The National Corn Growers Association expressed it appreciation for the APHIS decision and indicated it could be a building block on which other traits will be looked at.
“Corn amylase is the first processing output trait to be scrutinized by our regulatory system,” said Bart Schott, NCGA president and a grower from Kulm, N.D. “The potential importance of output traits to growers and the industry will only increase as other output traits are developed.”
These new output traits will benefit growers in their pocketbooks, according to NCGA’s Trade Policy and Biotechnology Action Team chairman Chad Blindauer, a farmer from Mitchell, S.D.
“All output traits will be value-added crops that have the potential to allow growers to raise a product that could be beneficial to their farms in ways that are not possible right now,” Blindauer said. “We are pleased the U.S. regulatory system continues to provide growers with planting choices for their operations.”
North Dakota’s Agriculture Commissioner Doug Goehring called the decision to deregulate the new corn variety a victory for both producers and the ethanol industry. Goehring earlier this year urged federal officials to expedite the decision.
“Deregulating alpha-amylase corn gives growers another option for the upcoming growing season and beyond,” he said. “The new corn variety will greatly benefit the ethanol industry because it increases the efficiency of fermentation.”
David Morgan, president of Syngenta Seeds, gave an idea of the magnitude that increased fermentation efficiency provides. For example, in a 100-million gallon plant, efficiency improvements enabled by Enogen corn can save 450,000 gallons of water, 1.3 million kilowatt hours of electricity and 244 billion BTUs of natural gas, the equivalent power to heat several thousand homes while reducing carbon dioxide emissions by 106 million pounds.
Morgan noted that Enogen has been tested extensively at Western Plains Energy in Oakley, Kan. The most visible result that plant has seen is an eight percent increase in ethanol production combined with an eight percent reduction in natural gas consumption.
For the upcoming growing season, Syngenta plans to work with a small number of ethanol plants and corn growers in close proximity and prepare for larger scale commercial introduction in 2012. Production of Enogen corn will be managed by Syngenta using a contracted, closed production system.
Nearly one-third of the corn produced in the United States is used in ethanol production. Canada approved Enogen for cultivation in 2008, following extensive review. It has been approved for import into Canada, Australia, Japan, New Zealand, Mexico, the Philippines, Russia and Taiwan.
Ethanol lowers food costs - AgWeek
http://www.agweek.com/event/article/id/17968/
Ethanol lowers food costs
WILMOT, S.D. — America’s corn crop is a miracle crop that, on a sustainable, per-acre basis, grows three times as much grain and creates three times as much soil organic matter by capturing three times as much carbon as other crops.
By: Orrie Swayze,
WILMOT, S.D. — America’s corn crop is a miracle crop that, on a sustainable, per-acre basis, grows three times as much grain and creates three times as much soil organic matter by capturing three times as much carbon as other crops.
Little wonder America’s corn acres can provide ample food supplies and nearly half of the American sourced fuel used by our autos, thus reducing both food and fuel prices.
The Department of Energy reports domestic crude oil production is an ever-decreasing 5.3 million barrels daily.
The National Renewable Energy Lab reports that, because of energy lost producing gasoline’s carcinogenic octane enhancers, refiners net less than 19 gallons of gasoline per barrel of crude, or approximately 2.3 million barrels daily.
Nearly a million barrels of ethanol are produced daily, and, therefore, account for approximately 43 percent of the domestic sources that provide fuel for your car.
Fuel and food
Remember a recent Government Accounting Office report that high oil prices caused high food prices?
Today’s clueless logic tells us high corn prices increased imported oil prices, inflation, food and fuel prices that toppled former Egyptian president Hosni Mubarak.
Back to reality: the National Renewable Energy Laboratory also reports ethanol’s volume and higher octane lowered reformulated gasoline prices 50 cents a gallon, and after subtracting ethanol subsidies and mileage penalties, still lowered all gasoline prices 14 cents a gallon.
Ethanol production, like domestic oil production, decreases inflationary fuel prices.
Imported oil
Consider that, historically, America’s inflationary spirals for commodities have been driven by increasing fuel prices caused by uncertainties associated with our ever-growing dependence on imported oil.
By providing a significant alternative to imported oil, increasing ethanol production actually lowers fuel and food prices along with every American’s biggest tax burden, or inflation.
America’s economic recovery depends on smarter energy policy that makes a balanced budget possible.
Editor’s Note: Swayze is a Wilmot, S.D., farmer and ethanol industry advocate.
U.S. has "foot on the gas" on ethanol: Vilsack
2011-02-24
http://www.reuters.com/article/2011/02/25/us-usda-forum-ethanol-idUSTRE71O03V20110225
(Reuters) - The United States "can do it all" -- turn more corn into ethanol without running short of food, Agriculture Secretary Tom Vilsack said on Thursday, as oil prices soared and the government raised its forecast of food price increases this year.
"There is no reason for us to take the foot off the gas," said Vilsack, referring to biofuels at a two-day Agriculture Department conference on the outlook for this year's crops. "We can do it all."
A record 5 billion bushels of corn will be used to make ethanol in the marketing year opening on Sept 1, up slightly from this year, said USDA. It also forecast food prices will rise 3.5 percent this year -- double the U.S. inflation rate.
Former president Bill Clinton, who spoke shortly after Vilsack, said there were stark trade-offs in using crops to make fuel. They affect the food supply in other nations as well as decisions around the world on where to grow crops.
"I think the best thing to say is we have to become energy independent but we don't want to do it at the cost of food riots," said Clinton. "The more biofuels we grow here, the less crops we have to put on the international market."
Vilsack said biofuels are an important component to U.S. energy security that also boost rural employment and income. A 2007 law guarantees a rising share of the motor fuel market to ethanol, peaking at 15 billion gallons from 2015. Production is running at 13.5 billion gallons a year now.
U.S. farmers are capable of growing enough corn to meet rising demand for food, fuel, livestock feed and exports, he said. This year's corn crop is projected for a record 13.73 billion bushels, up 10 percent from last year. Corn supplies are expected to be tight for one or two more years, however.
Clinton suggested annual reviews of supplies to assure there will be "good food at affordable prices," to maximize energy independence and to prevent climate change but did not say who should carry out the reviews.
Analyst Gary Blumenthal of consultants World Perspectives said biofuel use reduces U.S. grain exports and "certainly is incentivizing production elsewhere."
"The inequity in the situation is biofuel is a mandated market," Blumenthal said. "You're not allowing food to compete fairly with fuel" in buying supplies.
Dan Glickman, agriculture secretary during the Clinton era, said "by and large, it (ethanol) has a positive impact" on the economy and was only a small factor in food prices. Glickman said Clinton did not suggest government rationing or grain.
Some 4.95 billion bushels of corn are forecast to be turned into ethanol in the year ending Aug 31. Joe Glauber, USDA chief economist, said usage would rise marginally in the new year because ethanol is saturating the market at the 10 percent blend that is standard.
The Environmental Protection Agency has approved a 15 percent ethanol blend for cars and light trucks made since 2000, about 60 percent of the fleet. The U.S. House (of Representatives) voted last weekend to block EPA from implementing E15 and to bar use of federal funds to install "blender" pumps that dispense up to 85 percent ethanol in fuel, but the Senate has yet to act on such legislation.
Corn grower and ethanol trade groups said Clinton was wrong. There is plenty of fallow farmland that could be used for biofuels without harming the environment and that petroleum is a bigger factor in food prices, they said.
Oil prices rocketed above $100 a barrel on Thursday due to unrest in the Middle East but retreated slightly. U.S. crude oil settled at $97.28 a barrel after hitting its highest price since September 2008.
Green Plains Investor Event 2/23/2011 @ 11AM EST
http://investor.gpreinc.com//eventdetail.cfm?eventid=92939
I agree with that.
It's not often that you can buy a stock set to double earnings at 6X trailing and 1X book value.
Growth at a value price!
GPRE is "Deeply Undervalued" - seekingalpha
http://seekingalpha.com/article/254079-15-undervalued-small-caps-for-your-watchlist
In general, the participation of individual investors
has been low, during the past 2 years.
$1 Million end-of-day buy.
I love it! End of day buy takes 90k shares at market! 11.43->11.48
That's a million dollar buy, probably right into the 401k accounts and funds that value GPRE!
GO Green Plains!
Gauging by the activity on this board, it appears to me that very few people have discovered the gem, GPRE.
:)
Great Article on BioFuels and GPRE!
http://www.associatedcontent.com/article/7723718/us_biofuels_industry_consolidating_pg4.html?cat=3
US Economy ROARING LIKE A LION!
Ford boosts production by a whopping 13%!
http://finance.yahoo.com/news/Ford-to-raise-US-factory-apf-1827288616.html?x=0&sec=topStories&pos=main&asset=&ccode=
BioFuel Tax Credits Are "REFUNDABLE"
That means that the blender can get cash from the Government on the credit, if the company does not owe more than the credit amount.
It's like the individual income tax code.
For example, let's assume that a particular individual owes $1,000 in Federal Income Tax during a particular year, BEFORE TAX CREDITS. And, the individual has 3 children, qualifying him for a $3,000 child tax credit. Then, after factoring in the $3,000 child tax credit, that individual actually gets a refund for $2,000 from the Government.
It is a called a "REFUNDABLE TAX CREDIT". The BioFuel tax credits work the same way. They are "REFUNDABLE TAX CREDITS".
No it does not flow through in higher prices. The tax credit is passed on to consumers with lower prices at the gas pump.
GPRE - GERS Alliance:
This alliance will be like the Win-Tel Alliance of the computer industry (Windows - Intel), which dominated the industry for decades and pretty much still does (though Apple is challenging that).
GreenShift's COES systems and technical support gives GPRE a strategic advantage and a faster growth rate, which will support the stock price of GPRE.
A strong stock price on GPRE will enable them to acquire the weaker, smaller plants. The smaller, weaker plants will not be able to survive, when the ethanol credit expires in 2012. But, GPRE - with its stronger stock price, its economies of scale, and its technological advantages - will survive and acquire the smart small plants who sell out early. The dumb, small plants, who fight for independence, will die off, because they lack the economies of scale and the technological advantages of GPRE.
Even Valero - one of the other Big Four of ethanol - has weaknesses that GPRE doesn't have. Valero's conventional refining operations are a drag on the profitability of that company, and they come with huge environmental baggage, which GPRE does not have.
ADM is a stronger company, but their stock will never achieve the kind of growth premium that GPRE's stock will achieve. Large companies like ADM and IBM and Exxon, etc. can never achieve a growth multiple on their stock price, because they are too big to grow fast. A small but strong acquiror, like GPRE, can grow a lot faster than an ADM or a Valero. That higher stock multiple will translate into acquisition power.
POET is still private, and therefore does not have a higher multiple, public stock for acquisitions.
The small plants, especially those that GreenShift is suing for patent infringement, will have a very tough time surviving after the extension expires in 2012. And, they will get gobbled up. As a pure-play ethanol company that is aligned with the #1 COES company, GPRE will be the strongest acquirer, even stronger than ADM & Valero, because it is a pure-play, growth stock.
GPRE - GERS Alliance!
The Green Plains - GreenShift alliance will be like the "Win-Tel" alliance of the computer industry (Windows - Intel). The Win-Tel Alliance dominated the computer industry for decades.
This alliance will be win-win, giving Green Plains a key competitive advantage as it grows and acquires new plants.
Both GPRE & GERS will do well.
GERS' CEO usually puts out a shareholder letter in late Jan. or early Feb. of each year. With BioDiesel and Corn Oil prices as high as they are, I expect a great shareholder letter from GERS someday very soon, and then the ethanol conference is in late Feb.
Could be a great trade!
Correction & Apology
Now that the clock has ticked into Monday morning, I have a new allocation of I-Hub posts, which I can use to correct the mistaken posts I posted on Sunday 1/24 and apologize for them.
Through my own mis-reading of some corporate information, I mistakenly thought that there was no patent license agreement between GreenShift and Green Plains. After further research, I determined that there IS, in fact, a license agreement between GreenShift & Green Plains, which was announced by both companies on July 21, 2010. Both companies are still showing press releases from that date, which confirm that they have an active patent license agreement covering the Corn Oil Extraction System technology developed by GreenShift Corporation and its inventors and associates.
I apologize for my mistaken accusations of GPRE as being a patent pirate, which I posted both on this message board and on the GPRE message board on Sunday 1/24; and I request that the moderator of both of these boards, 12thMan, kindly delete my angry accusations published on that date on both boards.
And, for those who have been following my previous posts expressing confidence and optimism about these two companies, I hereby re-instate my confidence and optimism for them, both in the short term and in the long term!
Good luck to all!
Respectfully,
jlglex
Still Flows Through
It still flows through to the producers, via higher ethanol prices. A blender must buy ethanol, in order to blend it with gasoline.
No subsidies or tax credits go to Green Plains. The tax credit goes to the blenders and refiners who by ethanol. The $500 million to GPRE is inaccurate.
ACCUMULATION UNDERWAY
Publically, Piper Jaffray is neutral on this stock, but there is a $16 per share tax credit, passed by Congress and signed by the President, that is not yet priced into the stock.
Can YOU read between the lines? I can. Here's what I see happening between the lines ...
Piper Jaffray is keeping quiet on the stock, while a large client accumulates. Since there are only 31.3 Million shares outstanding, they need to keep quiet, so that the large client can accumulate, slowly, without moving the stock higher.
Just watch, when that client has finished accumulating, then the stock will move higher as the $16 per share tax credit becomes priced into the stock over the course of the next year, or so.
Good Luck!
GPRE BASING FOR AN UPSIDE BREAKOUT!
The extension of the ethanol tax credit was passed by the Congress, back in December 2010. As a producer of over 500 million gallons per year, GPRE is entitled to a cumulative total tax credit north of $500 Million. That is over $16 per share, which could be used for a variety of purposes, including: debt reduction, new technologies, acquisitions, shareholder dividends, or cash reserve.
Yet, this stock has hardly moved at all since Obama signed the tax credit extension last December. It is currently forming a base, and appears to be headed higher, as portfolio managers return to their desks for the New Year. I expect this stock will have an excellent quarter, as this important news becomes more fairly priced into the stock.
$12 Billion Tax Credit
The Lame Duck Congress approved a tax credit for ethanol, which is worth more a cumulative total of $12 Billion to the ethanol industry.
As a producer of more than 500 Million GPY, GPRE will get over $500 Million of that tax credit by the end of this year. That would be enough to dramatically reduce debt, finance acquisitions and/or new technology add-ons, or just use as a liquidity reserve.
Yet, this stock barely moved on that news, which came out last December. It appears that the stock is basing now, and getting ready to move higher, as the portfolio managers come back to work for the New Year.
The market ought to fully price in that news, as well as the 15% blend wall increase by the end of this quarter. It should be a good quarter for this stock!
Nice move Timhyma, profit is good!! Glad to see someone making moola.
Good Luck
Gerry
sold remaining GPRE at 13.02 for a 116% gain from the 19 Jun 08 buy. Completely out
5:33PM Green Plains Renewable Energy announces appointment of Chief Operating Officer (GPRE) 11.61 -0.34 : Co announced the appointment of Jeffrey S. Briggs as Chief Operating Officer effective November 23, 2009. Briggs will be responsible for all operations across the co, including Agribusiness and Ethanol Production.
Source: > 20 November 2009 (E-Business)
Mergers & Acquisitions Deal Analysis – Green Plains Renewable Energy To Acquire Two Ethanol Plants In Nebraska--Aarkstore Enterprise
Aarkstore announce a new report "Mergers & Acquisitions Deal Analysis – Green Plains Renewable Energy To Acquire Two Ethanol Plants In Nebraska" through its vast collection of market research report.
http://www.prminds.com/pressrelease.php?id=20193
S-3 out, they are looking for up to $100mil.
There is being registered hereunder an indeterminate number of shares of common stock, debt securities and warrants that may be issued by the registrant at various times and at indeterminate prices, with a total offering price not to exceed $100,000,000.
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6902721-954-121604&type=sect&TabIndex=2&companyid=658176&ppu=%252fdefault.aspx%253fcik%253d1309402
So, based on todays ps, 40% dilution coming?
Hmmm, might be time to move on. Unless they are going to build the Algae plant with it?????
HAHAH i woulda never looked back at this to see what was going on
grats on hanging in there man.
Some afternoon volume <bg>.
GREEN PLAINS RE...
Price: 9.55 +0.53 5.88%
Bid9.55[+].
Ask9.70
.Open9.03.
Volume46,478.
Brett Conrad – Longboard Capital Advisors
Quick question on the algae side of your business. What’s the endgame in that in terms of margin and what you think ultimately the off-take will have to be per gallon on that business to make money?
Todd Becker
Well, basically the way that we’ve – we set the business up, our endgame is – might be a little bit different than what others are out there. I mean, we are basically right now scaling up a Grower Harvester system. And if you think about a production process, we are going to act almost as a farmer acts in agriculture. We are going to produce and sell the algae to multiple streams whether there would be somebody that’s working on advanced biofuels, whether there is somebody that needs to get – use it in a high quality animal feed or whether we can dry it and actually take the biomass and burn it as energy.
But there is – for us, how we look at the business is that there is kind of two phases here. One is the technology side of it and one could possibly be a project development side of it. What we are going is hopefully ramp this up to commercial scale to provide people with a solution that they can capture their CO2 and grow a high value downstream input. And that’s basically our strategy. It’s still very early stage, we are moving from stage one pilot, which is now working in Shenandoah and has been rolled out in the month of October.
We are going to, hopefully, in the first quarter get stage two pilot, which will be a much larger scale of what we have in Shenandoah and that’s going to be moving outside of the plant in its own enclosed structure. And then from there, we will move quickly to look at the possibility of commercialization to – our first goal is to sequester all of the CO2 from Shenandoah and grow algae at our ethanol plant in Shenandoah. And then take that scale and move it to other applications.
So the endgame is still a long way away, but I think what we have today is one of the – we’ve invested in one of the leading technologies out there on growing and harvesting and one of the only processes that are going on to date that is actually sequestering CO2 from an industrial plant we think in the United States or maybe beyond.
"Our diversified operating platform is working well and we believe the upcoming fourth quarter will highlight the full earnings capability of our business, particularly during the fall harvest period when the Agribusiness segment is expected to achieve better seasonal results."
http://finance.yahoo.com/news/Green-Plains-Renewable-Energy-iw-833116681.html?x=0&.v=1
IOWA FOCUSES ON GREEN ENERGY
(Shenandoah) -- 2 million dollars well-spent - that's how Governor Culver feels about the Power Fund's contribution to the algae plant project in Shenandoah. At a ribbon cutting ceremony at Green Plains Renewable Energy plant yesterday (Wednesday), Culver shared statistics he's proud of for Iowa's Green Energy focus. Culver says in fact, Iowa is one of the world leaders now in wind energy generation per capita.
The governor says in the last 4 years, 9 major wind manufacturing companies from around the world have decided to locate or expand their wind operations in Iowa. Additionally, more than 200 “Iowa-based” companies are now in the supply chain of the wind energy industry. Culver says this represents 2,300 new “green-collar” jobs in wind alone. Culver says Iowa's work in biofuels has revolutionized the fuel industry in Iowa, and in the country. Today, there are 35 refineries with a capacity of 3.3 billion gallons of ethanol, and 325 million gallons of biodiesel.
Iowa now has the world's first algae production plant growing algae with CO2 waste from an ethanol plant that will produce biofuel and feed stock for animals. Culver says if every ethanol plant in Iowa uses this technology, nearly three-million tons of CO2 will be eliminated from the atmosphere.
Thu, 15 Oct 2009 12:30:19 CDT
http://kma960.com/localnews.asp
from a yahoo board: Fundamentals update - futures closings for Friday 10/16:
Last RBOB close: $1.98/gal
Last Crude close: $78.50/barrel
Last corn close: $3.72/bu
Last ethanol close: $1.848/gal
Current crush spread: $1.44 (bushel basis)
Link to todays USDA "National Weekly Ethanol Summary":
http://www.ams.usda.gov/mnreports/lsweth...
Note that the "low" price of ethanol FOB the plant in IL went from $1.74/gal last week to $1.90/gal this week (from $1.66 to $1.80 in NE). Also, corn price was relatively flat from week to week and RBOB went from $1.78/gal to $1.94/gal this week.
Axxis has the IL racks at $1.98 today and NE racks at $2.00. Link to Axxis rack prices by state:
http://www.axxispetro.com/ace.shtml
Hart Energy Consulting Sees Global Biofuel Growth to Double By 2015
Date Posted: September 30, 2009
Houston—Despite a number of key issues such as land use and competition for feedstocks supplies for traditional food and feed uses, global use of biofuels is excepted to more than double from 2009 to 2015, according to a new global analysis released Sept. 30 by Hart's Global Biofuels Center.
Leading the expansion is the United States with a growth of total biofuels use of more than 35%.
Brazil will grow domestic supplies by 30% and more than double export volume.
Indonesia and Malaysia will more than double production of palm oil biodiesel, while Germany will remain the largest producer of biofuels in Europe.
Major new contributors to the growth of global biofuels between 2009 and 2015 include Indonesia, France, China, India, Thailand, Colombia, Malaysia, Philippines and Argentina.
First generation ethanol, palm oil biodiesel and rapeseed biodiesel from Europe continue to be the dominant biofuels produced.
Despite major public policy interest in next-generation biofuels, actual commercial growth in the production and use of these fuels between 2009 and 2015 is projected to remain behind expectations.
Hart's recently released Global Biofuels Outlook to 2015 revealed that out of the approximately 170 next-generation biofuels projects around the world that are in some stage of development (operational, under construction or proposed), only 30% of those are actually expected to be operating during the study timeframe, and many of those are still in the pilot project stage.
Still, GBC recognizes the potential cellulosic ethanol and renewable diesel represent and that those biofuels, when fully commercialized, will command both a quality and price premium in the marketplace.
Those technologies which have thus far added Major oil company joint venture partners seem to have the greatest opportunity for first commercial operations.
"Be it cellulosic ethanol, renewable diesel, biomass-to-liquids (BTL) or Fischer Tropsch liquids, made from feedstocks such as agricultural or municipal solid wastes, grasses, woods, waste paper and algae, next-generation biofuels are still largely under Research & Development," said Tammy Klein, Executive Director of the Global Biofuels Center and the study leader.
Moreover, the study finds, mandates set that require next generation biofuels will not be met, particularly in the U.S. Currently, sugarcane ethanol from Brazil is the only commercially available, economical, low-carbon biofuel available on the market currently to meet U.S. RFS2 advanced biofuel and other low- carbon fuel requirements.
Other key findings include:
• Global ethanol demand will represent 12-14% of the global gasoline pool by 2015;
• Asia-Pacific ethanol production will grow tremendously in the coming years and could represent as much as 20% of global ethanol production by 2015;
• Of note, if India's own projections were realized, it could outpace Brazil in ethanol production and exporting by 2015.
Nonetheless, despite India's ethanol production expansion Hart projects that Brazil will remain the leading global biofuels exporter.
Covering mainly ethanol and biodiesel, but also ETBE (ethyl tertiary butyl ether), cellulosic ethanol and renewable diesel (also known as non-ester biodiesel) where applicable, the Global Biofuels Outlook captures the current and near-term biofuels picture in 35 countries in the five key regions of the globe.
The study reviews local and global drivers, public and fiscal policy developments, current and projected production capacity, and supply and demand projections for 2009, 2010 and 2015.
This year, the study also includes a comprehensive matrix of next generation technologies, including company name, technology description, development status and plant capacity.
The study also reviews the status of existing biofuels plants (operational, idle or shut down).
More information on the study findings, methodology and geographical coverage is available at www.globalbiofuelscenter.com.
Tammy Klein is available for comment at 701-323-0417.
http://www.biofuelsjournal.com/articles/Hart_Energy_Consulting_Sees_Global_Biofuel_Growth_to_Double_By_2015-83017.html
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22-Sep-09 ORGAS MICHAEL CARL
Officer 3,500 Direct Purchase at $7.41 - $7.49 per share. $26,0002
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Officer 30 Direct Purchase at $7.26 per share. $217
IOWA POWER FUND BOARD SLATES SHENANDOAH MEETING
(Shenandoah) -- Shenandoah officials are planning a big coming out party for the city's new algae operation--with state officials on hand.
Members of the Iowa Power Fund Board meet in Shenandoah October 14th. Gregg Connell is the executive vice president of the Shenandoah Chamber and Industry Association. Connell tells KMA News the power fund board is responsible for allocating state funding for energy projects--such as Shenandoah's fledgling algae plant. Established through legislation two years ago, the power fund will allocate $100,000 in the next four years.
During the power fund board meeting, Connell says the city will officially unveil the bioreactors converting C-O-2 from Green Plains Renewable Energy's ethanol plant into algae. Power fund officials awarded $2.1 million to the project. Connell, who received a sneak preview of the project, says it's impressive.
Connell says the bioreactors are expected to leave Rhode Island Thursday and arrive in Shenandoah September 22nd. Installation should take two days.
http://www.kma960.com/localnews.asp
Green Plains Renewable Energy, Inc. (NASDAQ:GPRE - News) today announced that Todd Becker, President and Chief Executive Officer, and Jerry Peters, Chief Financial Officer, will present at the Rodman & Renshaw Global Investment Conference - Cleantech Track in New York City on September 9, 2009 at the New York Palace Hotel
Presentation:
http://media.marketwire.com/attachments/EZIR/172/557564_GreenPlainsInvestorPresentationAug9.pdf
Some shuttered U.S. ethanol plants won't return to production, reducing supply and ensuring better margins for the remaining producers, Green Plains Renewable Energy Inc.'s chief executive officer said.
About 1.53 billion gallons of ethanol-production capacity is idle, according to the Renewable Fuels Association, a Washington-based industry group. The shutdowns, equal to about 12 percent of annual U.S. output, came amid volatile corn prices and a recession-induced slump in demand for the gasoline additive.
"It has helped" margins, the CEO, Todd Becker, said today in an interview. "Plants that are shut down are shut down for a reason. It's not easy to bring a bankrupt plant" back into production.
At least 10 ethanol companies have entered Chapter 11 bankruptcy reorganization in the past year. On May 18, Pacific Ethanol Inc., a West Coast producer, said the subsidiaries that own its plants sought court protection.
"People see we're surviving, we're not bankrupt," Becker said. "They see we're expanding."
Green Plains fell 19 cents, or 2.5 percent, to $7.57 at 4 p.m. New York time in Nasdaq Stock Market composite trading. The shares have risen more than fourfold this year.
Becker said the industry would need almost $400 million of working capital to return the idled capacity to production. A typical 100 million-gallon-a-year ethanol distillery requires as much as $25 million in working capital and banks may be hesitant to offer financing, he said.
Managing Margins
Green Plains avoided joining some of its competitors in Chapter 11 by utilizing both its grain and ethanol segments, Becker said.
"We managed margins," he said. "We didn't come into the year long corn. Whenever we buy corn we sell ethanol.
In May, the company bought two Nebraska mills that previously belonged to bankrupt producer VeraSun Energy Corp. for $123.5 million, making Green Plains the fourth-largest U.S. ethanol maker.
Ethanol is part of U.S. plans to lower reliance on imported oil. One bushel of corn distills into about 2.75 gallons of the renewable fuel.
The government requires the use of 10.5 billion gallons of the fuel this year and 15 billion gallons by 2015.
Demand for ethanol, made from corn in the U.S., has climbed as blenders use more of the fuel because it trades at a discount to gasoline, Becker said.
Tax Credit
Blenders and refiners receive a 45-cent tax credit for each gallon of ethanol blended into gasoline in addition to pocketing the difference between the two fuels. Yesterday, ethanol traded at a 45.42-cent discount to gasoline.
"The ethanol industry has turned the corner," Becker said. "Production is basically meeting demand."
U.S. ethanol makers produced an average of 669,000 barrels (28.1 million gallons) a day in May, up from 641,000 in April, the Energy Department said on July 30. There are 42 gallons in a barrel.
Poet LLC, based in Sioux Falls, South Dakota, is the largest ethanol producer, followed by Archer Daniels Midland Co., in Decatur. Valero Energy Corp., the San Antonio- based oil refinery owner, is the third-biggest ethanol producer.
http://www.dailyherald.com/story/?id=313912
Green Plains Renewable Energy, Inc. Q2 2009 Earnings Call Transcript
http://seekingalpha.com/article/155720-green-plains-renewable-energy-inc-q2-2009-earnings-call-transcript?source=yahoo
9:32AM Green Plains Renewable Energy began operations at its ethanol plant in Ord, Nebraska on July 12, 2009 (GPRE) 6.93 +0.04 :
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