A $38 million investment, to increase the output of GreenShift’s NextDiesel biodiesel refinery in Adrian, Michigan to 20 million gallons per year, was unvellied by the company yesterday (16th December). As part of the agreement the company will also build twelve corn oil extraction facilities to support the processing plant at Adrian.

GreenShift's biodiesel production model is based on the integration of its corn oil extraction technologies into corn ethanol production facilities to extract crude corn oil from distillers grain. The company installs its extraction technologies at its expense and then purchases the extracted oil for a price that is indexed at a discount to the price of diesel fuel. This hedges its biodiesel production margins and provides important benefits to participating ethanol clients.

"Our view is that the established corn ethanol infrastructure is the most practical pathway in North America to cost-effectively increase the production and use of carbon-neutral biofuels at globally-meaningful scales," said Kevin Kreisler, GreenShift's Chief Executive Officer. "To continue to accomplish this in a competitive and environmentally-superior way, existing corn ethanol facilities must evolve to achieve improved production efficiencies. We intend to contribute to that evolution. We look forward to the completion of this investment and delivering the financial and environmental benefits of our patent-pending corn oil extraction technologies to our ethanol clients at an accelerated pace."

Ed Carroll, GreenShift's President and Chief Financial Officer added that "We are proud and excited to have the opportunity to receive this investment. This investment will give us the resources we need to scale our corn oil biodiesel model into sustainable profitability while providing our ethanol clients with a valuable opportunity to stimulate cash flows and defray commodity risk without having to commit capital. We are eager to bring our extraction offering to as many ethanol producers as possible, and as quickly as possible."