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GreenShift Technology Converts Agricultural Waste into Biofuels

Posted on: Thursday, 1 December 2005, 12:00 CST

GreenShift Corporation (OTC Bulletin Board: GSHF) today announced its proprietary new wastewater processing technology for livestock and poultry processing facilities.

Dissolved Air Flotation Sludge

About 100 million pigs, 35 million cattle, 1.6 billion turkeys, and 8 billion chickens are slaughtered and processed each year in the United States. This contributes to the nation's meat and poultry supply and involves the activities of farms, slaughterhouses, and by-product disposal companies. Virtually every portion of the processed animals are used in edible food products, pet food or commercial feed.

The USDA requires facilities that process these meats to use large volumes of clean water to continuously rinse the meats as they are cut and packaged. The derivative large volumes of water contain extremely high levels of protein and fat. These nutrients are removed from the wastewater using conventional but highly efficient wastewater processing methods. This results in a cleaned wastewater and a concentrated sludge, which is called Dissolved Air Flotation ("DAF") sludge. The poultry industry alone generates in excess of 2.5 billion pounds or more than 63,000 tanker loads per year of DAF sludge.

The conventional practice among the more than 500 livestock and poultry processing facilities in the industry is to transport and dispose DAF sludge through land application.

Increase Profit and Reduced Environmental Impact

GreenShift Industrial Design Corporation ("GIDC"), a wholly owned GreenShift portfolio company, has developed a proprietary DAF sludge processing technology that effectively reduces the volume of DAF sludge by 80% while recovering the majority of the animal fats contained in the sludge. Poultry processing facilities alone will generate in excess of 50 million gallons or 10,000 tanker loads per year of this fat when utilizing the GIDC processing method. This fat can be cost-effectively converted into biodiesel fuel.

David Winsness, GIDC's chief executive officer, said that "this technology allows us to help livestock and poultry processing facilities to dramatically reduce the volume of sludge they are shipping and disposing. Our technology also creates a new revenue source for these facilities in the form of the refined fat we are pulling out of the DAF sludge and converting into biodiesel. This translates to reduced costs and increased profitability for these facilities. We are very proud and excited to provide this important sector of the American economy with our technology."

Installed For No Up Front Cost

GIDC intends to install its DAF processing systems at qualified processing facilities for no up front cost in return for fixed annuities equal to a discount to their current gross disposal costs and GIDC's agreement to purchase the refined fats extracted from the DAF sludge. GIDC will then sell these fats to Mean Green BioFuels Corporation, another GreenShift portfolio company, for conversion into biodiesel. GIDC estimates that the benefit for an average sized meat processing facility is about $400,000 per year.

Cascade of Benefits

"This new technology is yet another example of a green shift -- an incremental improvement in operating efficiencies that yields a cascade of benefits," added Winsness. "Each installation of this technology helps the agricultural industry to increase their profits by dramatically reducing waste disposal costs and by producing biodiesel. This then helps to increase job creation, to reduce America's dependence on foreign oil, and to reduce the emission of harmful greenhouse gases because biodiesel does not contain petroleum hydrocarbons."

Kevin Kreisler, GreenShift Corporation's chairman and chief executive officer, said that "David and his engineering team have cranked out an exciting and, in my view, powerful innovation here -- one of what I expect to be many from his group. Each deployment of this new technology brings important additional benefits to GreenShift and its various portfolio companies. GIDC gets immediate term cash flows, INSEQ Corporation gets manufacturing revenues which are estimated at about $500,000 per system, and Mean Green BioFuels gets a fixed supply of refined fat for processing in its planned new biodiesel facilities. Additionally, we plan to eventually add Ovation Products' new water purification technology to these systems to help meat processing facilities reuse as much water as possible. This new DAF processing technology is an excellent example of what GreenShift is about and we look forward to helping GIDC bring the technology to market."

GreenShift Corporation owns 100% of GIDC, 70% of INSEQ (OTC Bulletin Board: INSQ), 49% of Mean Green BioFuels, and about 12% of Ovation Products Corporation.

About GreenShift Corporation

GreenShift Corporation is a publicly traded business development company (BDC) whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.

BDCs are regulated by the Investment Company Act of 1940 and are essentially publicly-traded equity funds where shareholders and financial institutions provide capital in a regulated environment for investment in a pool of long-term, small and middle-market companies through the use of senior debt, mezzanine financing, and equity funding.

GreenShift plans to use equity and debt capital to support and drive the value of its existing portfolio of companies and to make investments in a diversified mix of strategically compatible growth stage public and private businesses and technologies. GreenShift's current portfolio includes investments in the following environmentally proactive companies:

-- Veridium Corporation (OTC Bulletin Board: VRDM);

-- INSEQ Corporation (OTC Bulletin Board: INSQ);

-- GreenWorks Corporation;

-- GreenShift Industrial Design Corporation;

-- Ovation Products Corporation;

-- Tornado Trash Corporation;

-- Mean Green BioFuels Corporation;

-- Ethanol Oil Recovery Systems, LLC;

-- Sterling Planet, Inc.;

-- TerraPass, Inc.;

-- Aerogel Composite, Inc.;

-- Air Cycle Corporation;

-- Electronic Scrap Recycling Corporation;

-- Coriolis Energy Corporation;

-- Hugo International Telecom, Inc.; and,

-- TDS (Telemedicine), Inc.

Additional information regarding GreenShift Corporation is available online at www.greenshift.com.

Safe Harbor Statement

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GreenShift Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Source: Business Wire

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