How are we different from other ethanol plants being built?

Alternative Energy Sources will utilize the experience and expertise of its management team as well as numerous cost-effective strategies to differentiate itself from other ethanol companies. Among them:

Economies of Scale – Significant fixed cost savings are possible with identical plants each expected to produce 110 million gallons of ethanol per year. Minimal repair and maintenance inventory will be necessary and Alternative Energy Sources will be better able to compete with the largest ethanol suppliers. Technological advances will further enhance savings by allowing plants to limit labor requirements to those of smaller facilities producing 40 million gallons per year.

Unit Train Economics – Railroad economies of scale would be maximized by outbound 100-car unit-trains of ethanol and outbound 75- to 100-car DDG unit-trains. 100-car ethanol loading is intended to be accomplished in merely one day. These shipments of ethanol and DDG by-products will be directed into premium destination markets away from the saturated Midwest markets. Supply chain management will be utilized as well to optimize delivery of ethanol and DDGs while quickly turning railroad car assets from origin to destination and back again.

Lowest-Cost Producer Status – Location is a key factor in achieving lowest-cost producer status. The ethanol plants are located in the “Cornbelt” on mainline railroads where “cheap” basis corn is grown. Droughts in these areas are minimized by the extensive deep prairie soils and truck sourcing of corn is available and plentiful.

Management Competencies – A distinct advantage of senior management’s extensive ADM backgrounds is an impressive 40+ years’ combined experience in the commodities markets; specifically, the use of futures, options, cash contracts and derivatives. A comprehensive understanding of futures delivery market economics, and experience in natural gas futures markets, raw materials procurement and negotiating strategies will further strengthen Alternative Energy Source’s ability to limit risk and optimize product output profits.