GS AgriFuels, Global Ethanol sign corn oil deal; oil from Global’s ethanol plant to be feedstock for GS biodiesel plant

In Iowa, GreenShift Agrifuels announced a deal with Global Ethanol to extract 10 Mgy of crude corn oil from Global Ethanol’s distillers grains. The grains are a by-product from the company’s 157 Mgy corn ethanol produced at its plants in Lakota, IA and Riga, MI.

Under the agreement, Green Shift AgriFuels and Global Ethanol will form a biodiesel joint venture, GS Global Biodiesel which will own and operate a 10 Mgy biodiesel plant in Lakota. The new facility will be online before the end of 2008.

The plan mirrors a similar project in New York recently announced between GreenShift and Northeast Biofuels. GS CleanTech Corporation inked an agreement with Northeast Biofuels to extract 10 Mgy of crude corn oil from the distillers grain produced at NEB’s 114 Mgy ethanol plant in Volney, NY.

In the Northeast Biofuels deal, GS CleanTech will provide an extraction system to NEB and in turn receives a right to purchase the extracted corn oil at a contract price. GS AgriFuels Corporation plans to construct a 10 Mgy corn oil biodiesel facility adjacent to the NEB facility.

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