Global Ethanol licenses GreenShift technology

By Luke Geiver
Posted January 7, 2010, at 1:01 p.m. CST

GreenShift Corp. granted Global Ethanol LLC the right to use a GreenShift patented corn oil extraction technology at Global Ethanol's 100 MMgy ethanol plant in Lakota, Iowa.

The extraction technology "drills" into the back end of first-generation corn ethanol plants, tapping into the existing reserve of inedible crude corn oil. The corn oil, which has historically been trapped in the distiller's grain coproduct of ethanol production, represents a valuable second-generation feedstock for use in the production of advanced carbon-neutral liquid fuels.

GreenShift's extraction technologies increase biofuel yields 7 percent per bushel of corn, while reducing the energy and greenhouse gas (GHG) intensity of corn ethanol production by more than 21 percent and 29 percent, respectively. These benefits correspond to increased ethanol producer income of about 8 cents to 12 cents per gallon of ethanol produced at current market prices, and can be realized for less than 10 percent of the capital cost of the host ethanol plant, according to GreenShift.

"GreenShift has shown that corn oil extraction enhances ethanol production efficiencies by increasing biofuel yield while reducing energy use," said Trevor Bourne Global Ethanol's CEO. "This in turn improves cash flow and plant profitability." An estimated 20 percent of the U.S. ethanol industry currently uses GreenShifts's technology. Kevin Kreisler, Greenshift CEO, hopes to expand the use of extraction technology. "Our chief goal for 2010 is to support the integration of our patented extraction technologies into as much of the U.S. ethanol fleet as possible," Kreisler said.

Global Ethanol will finance, build, own and operate a facility based on GreenShift's technology in exchange for an ongoing royalty payment of roughly 20 percent of the market price of the extracted corn oil at the time of shipment.