New York City-based GreenShift Corp. (OTCBB: GERS) announced an agreement with Adrian-based Biofuel Industries Group LLC, which does business at NextDiesel.
Under the deal, GreenShift will design and build more than $10 million worth of biodiesel production, feedstock pre-treatment and related process equipment based on GreenShift’s proprietary biofuel technologies.
GreenShift had previously sold NextDiesel an early version of its 10 million gallon per year biodiesel production system with transesterification, direct esterification and other capabilities. NextDiesel is using this equipment today to produce and sell biodiesel out of pork fat, crude vegetable oils and high free fatty acid feedstocks.
Under the new agreements, GreenShift will design, build and commission an additional 20 million gallons per year of biodiesel production capacity with full alternative feedstock processing capabilities. In addition, GreenShift’s process engineers will manage plant operations during the construction of the increased capacity in return for a fee based upon NextDiesel’s earnings through Dec. 31, 2008.
“We are fortunate to have selected GreenShift as our technology provider," said NextDiesel CEO Terry Nosan. "We believe that GreenShift is without question the technology leader in the industry. While their technologies are impressive, their true strength lies in their team and the fact that nearly every one of them has extensive chemical process experience. This expertise has been invaluable to us and we are very excited by these new agreements with GreenShift and our growth plan.”
“The realities of the feedstock markets require biodiesel producers to integrate feedstock pre-treatment and other processes into their facilities in order to produce fuel profitably in today’s feedstock-challenged market place," said GreenShift chairman Kevin Kreisler. "NextDiesel foresaw this and asked us to design their facility to accept lower-cost, high free fatty acid feedstocks for high-yield conversion into biodiesel. NextDiesel is consequently primed to be a leading producer of biofuels and we are thrilled to have the continued opportunity to earn their business.”
Additional information on GreenShift’s biodiesel offering is available online at www.greenshift.com/product_desc.php?mode=5.
More about NextDiesel at www.nextdiesel.net.
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