Revenue Enhancing Tactics Built Into Business Model
Stock Guru Profile – News
As ethanol become a commodity, production costs become the key driver in success. I think it’s important to view three crucial components to SOUT’s business plan that will produce cost efficiencies and enhance revenue.
1. Southridge by locating its ethanol production facility in Mississippi, is the beneficiary of incentives implemented by the state. These financial incentives provide Southridge a competitive advantage in the ethanol production industry.
2. Southridge’s geographical location has strong transportation advantages.
3. Ethanol from cellulose will drive profitability and provide enhanced revenue over corn.
A production incentive of $0.20 per gallon of ethanol is designed for local producers on the first 30 MMGY of ethanol produced each year which will continue to 2015.
The Delta of Mississippi has an established transportation infrastructure which originated with the original cash crop of the State, cotton. The map indicates the proximity of Sledge, Mississippi, to the Mississippi River which provides abundant barge transportation. The Delta of Mississippi with its long established farming history has an abundance of grain elevators for both trucking and rail transport.
As corn becomes the high cost basis for ethanol alternatives, sources will become the cost efficient choice.
Enter: Ethanol from Cellulose.
The cellulose ethanol market is expected to drive growth. This technology employs raw materials such as switchgrass and waste to produce ethanol.
Southridge has signed a letter of intent to acquire Celuhol Biotech, Inc which has developed a proprietary technology to efficiently produce cellulosic ethanol.
Celuhol’s technology is based on the use of woody waste and switchgrass, a primary feedstock for producing ethanol. Cellulosic ethanol reduces greenhouse gas emissions (GHG) by 85% over gasoline as compared to corn-based ethanol which reduces GHG emissions by 18% to 29% over gasoline. Raw materials for producing cellulosic ethanol are abundantly available and inexpensive compared to corn-based ethanol. The net result of using cellulosic ethanol is the significant reduction in production cost.
SOURCE: Southridge Enterprises, Inc.
Contact:
Alex Smid, 888-862-2192, ext. 3
http://www.southridgeethanol.com
Southridge Enterprises, Inc.
3625 N. Hall St.
Suite 900
Dallas, TX 75219
Phone: (214) 347.9473
Email: info@southridgeethanol.com
Website: http://www.southridgeethanol.com
About Southridge Enterprises, Inc. – Southridge Enterprises is a renewable energy company with a mission to become the ethanol producer of choice in the southeastern region of the United States. The Company is focusing its efforts in an area which offers abundant supplies of corn, superior transportation infrastructure and expedited permitting processes. The Company is actively acquiring and developing ethanol production facilities and anticipates start-up of the first phase of these operations in 2007. Southridge Enterprises is headquartered in Dallas, Texas. For more information, please visit our website: www.southridgeethanol.com
Forward-Looking Statements – This news release contains “forward-looking statements,” as that term is defined in Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, successfully equipping the Quitman County plant for the production of ethanol, and the startup of production of in 2008, if at all.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage company in the alternative energy industry, its products, and the entry into new markets for such products. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company’s current and periodic reports filed from time to time with the Securities and Exchange Commission.
Disclosure: Pentony Enterprises LLC has been compensated $10,000 directly from the company for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
KEYWORD: Mississippi Texas
INDUSTRY KEYWORD: Energy Alternative Energy Alternative Vehicles/Fuels Automotive Environment
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