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Re: BillV post# 32333

Thursday, 12/13/2012 2:11:42 PM

Thursday, December 13, 2012 2:11:42 PM

Post# of 52843
Method II In Two Weeks...

It's possible and it would explain the 2.3 billion licensed number. Plus, Amaizing Energy had an Edeniq system installed before GERS brought charges of infringement against them. When ANDE bought Amaizing Energy out, they settled the lawsuit with GERS and licensed the Edeniq system.

To me that's a good indication of how a multi-billion dollar company views the Edeniq add on with consideration of GERS' patents. As another example, SRS has a proprietary emulsion breaker to aid the process, but they still heat and centrifuge.(Corn LP, Aemetis, Red Trail all use SRS)

To clarify, GERS has patented the basic method of heating and centrifuging to break the emulsion.

ICM has patented the use of alcohol to aid in emulsion breaking.

Edeniq has patented the use of sodium to aid in emulsion breaking.

GERS has patents pending for the use of enzymes to aid in emulsion breaking which are more effective than sodium or alcohol.

GERS has patented the basic use of heat and a centrifuge. Any producer that uses heat and a centrifuge, regardless of which additive is used to aid the process, (alcohol, sodium, enzymes) needs a license or they're infringing.

The Andersons understand this. If this is what's going on, then Flint Hills and PEIX may be on board. And it may be that GERS' gets a royalty for the basic amount of oil and not the extra that's released with the aid of alcohol or sodium. That would be a possible explanation for revenues.

Alcohol, sodium, heat, and centrifuges, are all good ways to break the emulsion. But the best way to break an emulsion is to stop it from happening in the first place. I think this is where method II comes in.

With method II technology, they're washing the stillage upstream before the centrifuges and before the emulsion has a chance to form. With this technology, the use of alcohol and sodium will soon be obsolete. That's because there's no reason to break an emulsion when it doesn't exist in the first place.

The reason method II gets 160% more oil than the traditional .5 pounds is because they've treated the stillage upstream to stop the emulsion from forming. A producer using method II wouldn't need alcohol, sodium or any other aid. There would be no emulsion to break. In this case, GERS would capture a royalty for all the oil method II produces and the ICM AOS will be worthless.

Good Luck To All!$!$!$!$