GS CleanTech Executes Agreement with Ethanol Producer to Extract Corn Oil for Conversion into Biodiesel

July 31, 2006

GS CleanTech Corporation (OTC BB: GSCT) today announced its execution of a definitive agreement with an ethanol producer to extract about 1.2 million gallons per year of crude corn oil from the producer’s distillers dried grains for conversion into a biodiesel feedstock using GS CleanTech’s proprietary corn oil extraction technology.

GS CleanTech’s pricing model for its corn oil extraction technology is based on GS CleanTech’s provision of turn-key extraction systems for no up-front cost in return for long-term agreements to purchase the extracted corn oil based on a fixed discount to prevailing fuel prices. 

Under the terms of the agreement, GS CleanTech expects to generate an estimated $1.4 million to $1.8 million in annualized revenues by purchasing and selling the ethanol facility’s extracted corn oil as a biodiesel feedstock.

“Our patent-pending Corn Oil Extraction Systems(TM) have been specifically engineered to help ethanol producers enhance production and increase revenues out of their existing crop in cost-effective and rapid ways,” said David Winsness, GS CleanTech’s president and chief operating officer.

GS CleanTech’s Focus on Ethanol Production

GS CleanTech is currently focused on delivering its technologies and process innovations to the Ethanol Production Industry with a view towards maximizing the yield of corn-based ethanol production.

Traditional ethanol processing converts each bushel of corn, which weighs about 54 pounds, into about 18 pounds of ethanol, 18 pounds of carbon dioxide, and 18 pounds of distillers dried grains (DDG), which contain about 2 pounds of fat. This corresponds to a corn to clean fuel conversion efficiency of about 33%, or about 2.8 gallons of clean fuel per bushel of corn. GS CleanTech’s ambition is to increase this efficiency as much as possible.

GS CleanTech’s patent-pending corn oil extraction and biodiesel processing technologies convert the fat in the DDG into a high grade corn oil that can then be converted into biodiesel on close to a 1:1 volumetric basis. This increases the corn to clean fuel conversion efficiency described above to 36%, or about 3.0 gallons of clean fuel per bushel of corn.

Winsness added: “The increased yield per bushel may not seem like much, but it adds up. Our corn oil extraction program allows a typical 50 million gallon per year ethanol production facility to increase their revenues by about 3.5%. That works out to as much as $4.7 million in additional annualized sales. We are very excited by the new agreement with the ethanol facility and, with many more systems in our hard sales pipeline, we look forward to increased opportunities to help ethanol producers and their communities maximize their fuel yield out of their existing crops.”

One Kernel to Two Fuels with GS CleanTech’s Corn Oil Extraction Systems(TM)

Currently, the majority of ethanol production is based on a dry milling technique that utilizes more than 1 billion bushels of corn to produce 3 billion gallons per year of ethanol (Fuel #1). The dry mill process converts the starch from the kernel of corn into sugar and then the sugar into ethanol. The balance of the corn (non-starch components) then goes through a dewatering and dehydration process where the byproduct is sold as a commercial feed ingredient called distillers dried grain. DDG contains the majority of the corn oil that was present in the kernel. Today, the 1 billion bushels of corn currently used in the dry mill ethanol process contain roughly 300 million gallons of corn oil that is currently sold for about $0.035 per pound as commercial feed. GS CleanTech’s corn oil extraction technology presents another option – cost effective conversion into biodiesel (Fuel #2).

GS CleanTech’s Corn Oil Extraction System(TM) offers the following compelling benefits for ethanol producers:

— Increased Revenue – The corn oil extracted is readily amenable to refining into biodiesel fuel which creates a new revenue stream for participating ethanol facilities;

— Reduced Operating Costs and Emissions – Corn oil removal can improve drying efficiency by more than 10% with reduced natural gas or coal needs and reduced emissions (NOx, SOx, VOC, and CO2);

— Low Operating Costs – The system requires less than $0.05 per gallon of corn oil produced;

— High Recovery Rates – The technology is capable of recovering up to 75% of the corn oil within the DDG; and,

— Increased Inclusion Rates – Corn oil removal can improve defatted DDG marketability and inclusion rates by reducing fat content.

Pictures and video of the GS CleanTech’s corn oil extraction technology are available online at http://www.veridium.com/cornoil.php – this system is in use today and efficiently recovers corn oil from concentrated thin stillage.

About GS CleanTech Corporation

GS CleanTech Corporation provides applied engineering and technology transfer services based on clean technologies and process innovations that make it cost-effective and easy to recycle and reuse resources.

GS CleanTech is a majority-owned subsidiary of GreenShift Corporation (OTC Bulletin Board: GSHF), a company devoted to facilitating the efficient use of natural resources.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GS CleanTech Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Source: Business Wire

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: