GPRE's Oil Extraction License Agreement For GERS' Patents
"We are operating corn oil extraction systems at 9 of our plants, with the tenth expected to come online this year. The corn oil systems we installed are designed to extract non-edible corn oil from the thin stillage evaporation process immediately prior to production of distillers grains. The corn oil product is primarily marketed as a feedstock for biodiesel as well as a supplement to livestock feed.
Other industrial uses for corn oil include feedstock for rubber substitutes, rust preventatives, inks, textiles, soaps and insecticides. Our corn oil is primarily sold to biodiesel manufactures and, to a lesser extent, feed lot and poultry markets. We generally transport our corn oil by truck to locations in close proximity to our ethanol plants, primarily in the southeastern and midwestern regions of the U.S. With our continuous yield improvements we expect to produce over 165 million pounds of corn oil across our platform annually."
Green Plains Renewable Energy to Implement Corn Oil Extraction Technology
OMAHA, Neb., Jul 21, 2010 (GlobeNewswire via COMTEX News Network) -- Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) announced today that it will implement corn oil extraction technology at its ethanol plants. The Company expects to complete the technology deployment by the end of the first quarter of 2011 and anticipates the project would enhance operating income by $15 million to $19 million per year.
"Our objective is to continue to diversify our cash flows and to de-risk our overall platform," said Todd Becker, President and Chief Executive Officer of Green Plains Renewable Energy. "This project allows us to realize additional income streams from value-added co-products. The production of 75 million to 90 million pounds of corn oil per year will generate substantial recurring free cash flows and excellent returns on invested capital."
ICM, Inc. has been awarded turn-key installation contracts at five of the Company's six plants. The expected total project cost for all plants is approximately $18 million. The Company anticipates first revenues from corn oil extraction at the Obion, Tennessee plant to occur within the next 90 days.
Green Plains has entered into a license agreement with GS CleanTech Corporation, a subsidiary of GreenShift Corporation, to utilize its patents and pending patents.
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