Veridium Receives First Order for Ethanol By-Product Recovery Technology
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Veridium's proprietary new Corn Oil Extraction Systems(TM) extract high grade corn oil from an ethanol by-product called distillers dried grain ("DDG"). A manually controlled system is up and running today at Glacial Lakes' Watertown, South Dakota ethanol production facility, where it is extracting corn oil now at a rate of about 0.8 million gallons per year. This rate will be increased to between 1.2 to 1.5 million gallons per year in the immediate term after Veridium installs additional technology in the system.
Veridium's pricing model for its Corn Oil Extraction Systems(TM) is not based on licensing or outright equipment sales, but rather on the provision of its turn-key systems for no up-front cost in return for long-term corn oil purchase agreements based on a fixed discount to prevailing market prices.
Glacial Lakes is a farmer-owned ethanol production facility that was commissioned in August 2002 and is currently producing more than 50 million gallons of ethanol annually. The Watertown ethanol production facility is one of more than 70 ethanol production facilities currently operating in the U.S.
David Winsness, chief executive officer of Veridium's industrial design division, stated that "The Watertown installation - the first of what we plan to be many such installations - demonstrates the commercial viability of our new technology and brings immediate cash flows to Veridium. This system is expected to extract in excess of 1.2 million gallons per year of corn oil which Veridium will buy and sell and generate more than $1.4 million in annualized revenues."
Tom Branhan, chief executive officer of Glacial Lakes Energy added: "I have been a believer of this technology and have actively supported its development from the very first day it was introduced to me by David Winsness and his team. Veridium's technology allows to significantly increase our profitability and I am proud to say that Glacial Lakes is the first ethanol producer to install Veridium's Corn Oil Extraction System(TM)."
Additional information is available online at www.glaciallakesenergy.com.
About Veridium's Corn Oil Extraction System(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"). 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 $0.03 per pound as commercial feed. The new Veridium technology presents another option - cost effective conversion into Biodiesel (Fuel #2).
Veridium's Corn Oil Extraction System(TM) offers the following compelling benefits for ethanol producers:
-- 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;
-- Increased Revenue - the corn oil extracted with Veridium's technology is readily amenable to refining into biodiesel fuel which creates a new revenue stream for participating ethanol facilities;
-- Reduces Current Operating Costs and Emissions - Veridium's technology improves the drying efficiency of the DDG which in turn reduces overall plant operating costs and emissions; and,
-- Low Capital Cost - Veridium's oil extraction methods have a capital cost of less than 15% of traditional corn oil extraction methods.
About Veridium Corporation
Veridium Corporation (OTC Bulletin Board: VRDM) is a publicly traded industrial waste recycling company and holds the rights to more than a dozen proprietary universal processing, water purification, emissions control and waste recycling technologies.
Veridium's business model is based on the engineering and marketing of green innovations and processes that enhance manufacturing efficiencies, improve resource utilization and minimize waste. Veridium's mission is to deliver consumer oriented Natural Solutions(TM) based on an array of green technologies and applied engineering expertise that reduce waste at the source and make it easier for people and businesses to recycle and reuse resources. Veridium plans to focus on the continued acquisition, development and marketing of benchmark green technologies and products that accomplish the following key goals:
-- Reduce the volume of waste generated by residential and commercial consumers;
-- Increase the convenience and decrease the cost of recycling by residential and commercial consumers; and,
-- Increase the cost-efficiency of processing certain types of industrial wastes.
Veridium is about 65% owned by GreenShift Corporation (OTC Bulletin Board: GSHF), a publicly traded business development company (BDC) whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.