GS CleanTech Corporation (OTC Bulletin Board: GSCT) today announced its execution of a definitive agreement with an Iowa-based ethanol producer to extract about 3.3 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 patent-pending Corn Oil Extraction Systems(TM) have been engineered to help ethanol producers enhance production and increase revenues out of their existing crop in cost-effective and rapid ways.
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 new agreement, GS CleanTech will install its Corn Oil Extraction System(TM) on-site at the ethanol facility where it will initially generate about $4.0 million in annualized revenues from the purchase and sale of the ethanol facility's extracted corn oil as a biodiesel feedstock.
David Winsness, GS CleanTech's president and chief operational officer said that "Our ethanol program continues to build momentum. Corn-derived ethanol producers clearly recognize the need to improve their energy balance. The surest and quickest way to do this is to implement technologies that enhance the yields and operating efficiencies of traditional production processes. Our corn oil extraction technology is the first of several new technologies that we are bringing to market to meet those objectives."
GS CleanTech's Focus on Ethanol Production
GS CleanTech is focused on delivering 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. This increased yield per bushel may not seem like much, but it adds up.
GS CleanTech's corn oil extraction program allows a typical 50 million gallon per year ethanol production facility to increase their revenues by about 3.5%, or by as much as $4.7 million in new annualized sales.
Winsness added: "We believe that our technologies can and should play a significant role in improving the net energy value of corn-derived ethanol while enabling ethanol producers and their communities to maximize the fuel yield out of their existing crops."
Additional information on GS CleanTech's corn oil extraction technology and GS CleanTech's Ethanol Program is available online at www.gs-cleantech.com.
GS CleanTech's Corn Oil Extraction System(TM)
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.
About GS CleanTech Corporation
GS CleanTech Corporation (OTC Bulletin Board: GSCT) 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.
Safe Harbor Statement
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