GreenShift Patent Notice Paves Way for Success
GreenShift Corporation [[GERS.OB]] announced that it received Notices of Allowance from the U.S. Patent and Trademark Office for its proprietary corn oil extraction technologies. The technology makes it possible to produce advanced biofuel from inedible corn oil – a previously untapped biodiesel resulting from corn ethanol production.
Unlike many other biofuels, GreenShift’s corn oil extraction technologies are widely considered to be the quickest path for margin improvement for existing corn ethanol producers. It is capable of extracting more than 6.5 gallons of previously unrecovered crude corn oil from every 100 gallons of ethanol produced, which equates to a 7% increase in production with little added cost.
If all U.S. ethanol producers were to utilize GreenShift’s technology, it would result in 680 million gallons per year – or about $1.6 billion in value – while stimulating more than $850 million per year in newfound EBITDA into both U.S. ethanol and biodiesel industries. So far, no other technologies have been developed or commercialized that approach this kind of yield.
GreenShift has also developed a very compelling model through which to sell its technology to ethanol producers. Under the proposed plan, the company would provide 100% of the capital needed to build and integrate a turn-key operation in return for long-term (10-year) right to purchase the extracted oil for a fair price that is indexed to the price of diesel fuel.
The technology and revenue model make GreenShift more comparable to a traditional oil and gas model than other biofuel models, since it owns its feedstock extraction facilities and has hedged its refining margins. The prudence should allow for safer revenues and a higher earnings multiple given its long-term visibility and safety under contract.
In the end, GreenShift is one of the few alternative energy providers with a strong patented technology and a revenue model fit for a public company. If successful in its rollout, this technology could help the company become a major player very quickly. As a result, GreenShift Corporation is one stock that OTC investors will want to keep an eye on!
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com