GreenShift’s business model is based on feedstock ownership and margin protection. A sustainable mining business requires a cost-effective and reliable source of ore; a sustainable petrochemical refinery requires a cost-effective and reliable source of petroleum; and a sustainable biofuels business requires a cost-effective and reliable source of feedstock.
GreenShift uses its technologies to sustainably produce biomass-derived products by targeting, extracting, acquiring and refining cost-effective and reliable raw materials that other producers lack the technology to access or process. GreenShift does not sell equipment based on its technologies, nor does it provide services based on its technologies, nor does it license its technologies in any conventional way.
Instead, we generate income by granting non-exclusive, site-specific licenses to ethanol producers (each, a “Licensee”) for the use of the our extraction technologies in return for the right to purchase the extracted oil for the life of the use of the technology at a rate indexed to diesel fuel.
GreenShift’s plan from inception of its commercialization of our extraction technologies has been to generate income and shareholder value by purchasing the extracted oil from our Licensees, refining the extracted oil into biofuel, and selling the corn oil derived biofuel for use in lieu of fossil fuels. We also plan to sell the extracted oil to third-party biofuel producers until our Licensees are producing sufficient volumes of extracted oil to justify the capital and operating costs of a biofuel refinery.
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