VRDM,up on news:
Veridium Receives Order to Increase Ethanol Production Efficiencies
Thursday March 30, 12:04 pm ET
NEW YORK--(BUSINESS WIRE)--March 30, 2006--Veridium Corporation (OTC Bulletin Board: VRDM - News) today announced its receipt of an order from a Wisconsin based ethanol producer for the second stage of Veridium's patent-pending Corn Oil Extraction Systems(TM).
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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").
One Kernel, Two Fuels
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. 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 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 of the oil in the ethanol by-product into biodiesel.
Veridium's technology has the capability of removing up to 75% of the corn oil from within the DDG in two stages. The first stage extracts 1.2 to 1.5 million gallons per year and corresponds to about 30% of the corn oil in the DDG for a 50 million gallon per year facility. Each of Veridium's previously announced orders for its Corn Oil Extraction Systems(TM) are for deployments of the first stage.
The second stage of the Veridium technology recovers another 30% to 45% of the corn oil in the DDG, corresponding to another 1.2 to 2.2 million gallons of corn oil per year out of a 50 million gallon per year ethanol facility. The Wisconsin facility has ordered both stages and is expected to produce about 2.4 to 3.7 million gallons of corn oil per year when both stages are deployed later this year.
David Winsness, chief executive officer of Veridium's industrial design division, stated that "3 million gallons per year of high grade corn oil converts to 3 million gallons per year of biodiesel. This equates to a 6% increase in fuel production out of a 50 million gallon per year ethanol facility, and a significant increase in plant productivity out of the plant's existing infrastructure."
Veridium provides turn-key Corn Oil Extraction Systems(TM) for no up-front cost in return for long-term corn oil purchase agreements based on a fixed discount to prevailing market prices.
Increased Demand for Ethanol
Kevin Kreisler, chairman and chief executive officer of GreenShift Corporation (OTC Bulletin Board: GSHF - News), Veridium's majority shareholder, said that "the Veridium technology is very timely. We expect that demand for ethanol is going to increase markedly in the immediate future as the fuel additive MTBE is phased out and replaced with ethanol. Our belief is that this is going to result in increased demand for technologies that enhance ethanol production efficiencies and Veridium holds the rights to a number of technologies that we believe achieve this."
MTBE, or methyl tertiary butyl ether, is blended with gasoline to enhance its oxygen content and it accounts for about 10 percent of the volume of every gallon of gasoline with which it is blended. This is equal to about 1.4 percent of the nationwide supply. Many gasoline marketers are planning to eliminate their use of MTBE once the oxygenate requirement lapses on May 5 due to the fact that the Energy Policy Act of 2005 didn't protect MTBE producers from past or future groundwater contamination lawsuits. Additionally, the new Renewable Fuel Standard holds refiners to a baseline use of renewable fuels such as ethanol of 4 billion gallons in 2006 and increasing to 7.5 billion gallons by 2012. The Energy Department estimates that 130,000 barrels per day of extra ethanol will be needed beginning May 5, an amount equal to almost 50 percent of current output.
Winsness concluded: "According to the Renewable Fuels Association, the ethanol industry has been planning for this transition for some time and producers have taken the necessary steps to respond to the increased demand. We are excited and grateful for the opportunity to provide our ethanol clients with additional options to meet the increased demand in cost-effective and rapid ways."
About Veridium's Corn Oil Extraction System(TM)
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.
Pictures and video of the new Veridium technology are available online at www.meangreenbiofuels.com - this system is the first stage of the technology and it is in use today recovering corn oil from concentrated thin stillage.
About Veridium Corporation
Veridium Corporation (OTC Bulletin Board: VRDM - News) 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 70% owned by GreenShift Corporation (OTC Bulletin Board: GSHF - News), 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. |
