The ethanol industry produces a byproduct that contains significant volumes of corn oil that until recently could not be cost effectively recovered. Mean Green Biofuels Corporation (Mean Green™), a Greenshift related company, has exclusive use of the EORS corn oil extraction technology in the eastern U.S. that can be applied to the dry mill ethanol processing industry. The corn oil is then processed into biodiesel at an offsite biodiesel production facility.
The Mean Green Biofuels™ process redirects an internal waste stream in dry mill ethanol facilities through its proprietary extraction systems where crude corn oil is extracted and then prepared for shipment offsite for further refining. Initially they will purchase and sell this on the basis of wholesale and retail prices, thereby stimulating near term cash flows pending the initiation of operations at its planned new biodiesel facility. They intend to build a 30 MMgpy biodiesel production facility which will process the crude corn oil in a new facility that is expected to be completed in 2007.
Biodiesel currently comes mainly from soybeans as well as other plants and animal fats. Corn has historically not been used because conventional extraction processes were not capable of producing a high enough grade of oil. The new technology extracts crude corn oil from the evaporation area of dry mill ethanol facilities. Of the 4 Billion Gallons of ethanol produced, there remains in excess of 300 million gallons of corn oil that is not being recovered. With a newly signed US Energy Bill that requires renewable fuel production in excess of 7.5 billion gallons annually by 2012 the volume of Corn Oil available will exceed 600 million gallons annually.
EORS is the inventor of the patent-pending technology being used by Mean Green™. EORS is a participant of a development partnership comprised of and managed by ethanol producers and plans to finance and construct a biodiesel production facility that will refine the crude corn oil and convert it into biodiesel fuels.
INSEQ, a manufacturing and marketing company associated with Greenshift expects that given the breadth of the territory and the increasing popularity of biofuels, the total national demand for the extraction systems will accordingly exceed 30 systems over the next 24 months. INSEQ will manufacture the systems at its Ohio based specialty equipment manufacturing facility. The first of these systems are expected to ship during the first quarter of 2006. INSEQ expects the extraction systems to retail for about $1 million per system.
INSEQ has the right of first refusal to manufacture proprietary systems to extract crude corn oil from the evaporation area of dry mill ethanol facilities for further refining into biodiesel fuel (the "Extraction Systems") for EORS in the western half of the U.S. on the basis of the then-prevailing competitive price point for the scope of services provided. INSEQ also has the right of first refusal to manufacture the Extraction Systems, as well as Biodiesel Processing Equipment, for Mean Green Biofuels™ in the eastern half of the U.S.
GreenShift Corporation (OTC Bulletin Board: GSHF - News), is a business development corporation whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and contribute to the resolution of environmental challenges. Mean Green™ is 51% owned by the inventor of the Technology, Cantrell Winsness Technologies, LLC, and 49% owned by GreenShift. According to a 6/30/05 announcement Greenshift was to aquire a 15% stake in EORS. INSEQ is 70% owned by GreenShift Corporation.
GreenShift Unleashes Mean Green Biofuels™, Greenshift Corporation press release, 9/7/05
"ISEQ Restructures Manufacturing Agreement", Greenshift Corporation press release, 9/7/05
GreenShift Corporation, Mount Arlingtn, NJ