Domestic Fuel

Through a joint venture announced today, Veridium Corporation of New Jersey was granted the exclusive worldwide rights to Mean Green’s patent-pending Corn Oil Extraction System(TM). Both companies are owned in part by GreenShift, with Veridium having a primary focus on waste management services. According to a GreenShift release, the proprietary new technology extracts high grade corn oil from ethanol by-products. Veridium intends to provide ethanol producers with 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. Pictures and video of the new Veridium technology are available online at www.meangreenbiofuels.com.

GreenShift Corporation has announced the consolidation of its various biofuels companies into a restructured Mean Green BioFuels Corporation. According to a company release, GreenShift’s investments in BioEnergy Engineering, LLC and Ethanol Oil Recovery Systems, LLC, were transferred into Mean Green along with Mean Green Biodiesel of Tennessee, Inc.
Mean Green’s business model is based on the production of biodiesel out of soy bean oil; animal fats procured from rendering operations; corn oil extracted from ethanol facilities and animal fats derived from dissolved air flotation wastewater sludges.
Mean Green plans to aggressively invest in its brand as it promotes the use of biofuels in America with the objective of offsetting the demand for fossil fuels while reducing harmful greenhouse gas emissions directly in the trenches — in as many diesel burning trucks, tractors, other heavy equipment and industrial facilities as possible.

All this ethanol talk was good for business on Wednesday. Shares for farm equipment companies like John Deere and Agco posted gains in trading today on ideas that increased ethanol production will mean more tractors and combines will be needed. According to MarketWatch, Morgan Stanley reiterated its overweight rating on Deere Wednesday and called ethanol the “key energy theme in 2006.” Pent-up demand for equipment replacement on farms and higher corn production should drive machine purchases, according to the analysts. “Ethanol is a rare win-win for nearly all involved,” wrote analyst Stephen Volkmann. “Farmers get higher crop prices, consumers get away from imported energy, environmentalists get renewable and cleaner burning fuel and government gets to send less direct aid to farmers.”

Every single news story that I read or heard about the president’s speech last night focused on his remarks about ethanol and it seemed to be overwhelmingly positive. Even the Democratic response to the address from brand new Virginia Governor Tim Kaine seemed to agree with Bush on this point, sort of. “When it comes to energy, Americans are using more than ever, paying more for it, and are more dependent on the Middle East than ever before. There’s a better way. Last summer, I joined Democrats in Washington and in other states in calling on oil companies to share in our sacrifice and return some of their record-breaking excess profits. Democrats at both the state and national levels are leading the way on energy reforms, calling for greater public investments for alternative, advanced energy technologies. These investments will promote energy independence, boost our nation’s economy, create jobs, and strengthen national security.”Automotive News noted some reaction that the plan was “too little and too long term.” Global reaction was mixed according to an Associated Press story which includes negative comments from France and OPEC – no surprises there.
Read more about the Advanced Energy Initiative that the president announced last night.