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Our primary goal is to become a leader in the production, marketing and sale of ethanol in Canada and the Eastern United States. Our business strategy to achieve this goal includes the following elements:
Develop and complete construction of our first ethanol production facilities and begin producing ethanol and co-products.
Our initial goal is to construct two facilities to produce ethanol and its co-products, specifically, DDGS and CO2, for sale in Ontario and the Northeastern and Midwestern United States and Europe. We believe that, once production begins from our 100 million US gallon per year ethanol plants in Barrie and Sarnia, Ontario, we will be the largest producer of ethanol in Ontario. Our proximity to the geographic market in which we plan to sell our ethanol provides us significant competitive advantages over other ethanol producers.
We expect to begin to market the ethanol that we will be producing from our initial facility in Barrie as soon as the commencement date of production can be reasonably estimated. We expect that all of the ethanol generated from our Ontario facilities will be sold in the Southern Ontario and Eastern United States market, capturing a key competitive advantage over other ethanol producers who must incur costs of delivering ethanol from significant distances.
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Exploit economies of scale among multiple manufacturing locations
Upon our successful construction of multiple manufacturing facilities in Canada and US, we believe there are significant opportunities for cost savings in raw materials purchasing, transportation, engineering and operations which will provide a profitability advantage vis-à-vis other smaller and single-site ethanol producers.
Make strategic acquisitions of existing or pending ethanol production facilities
We plan to explore opportunities to make strategic acquisitions of existing or pending ethanol production facilities. In circumstances where we determine that the acquisition of existing or pending ethanol production facilities represents an opportunity to more quickly or successfully meet our business goals, we intend to undertake to consummate these acquisitions.
Identify and exploit new ethanol production technologies
We plan to identify and exploit new technologies for reduced costs and greater manufacturing yields. For example, we are examining new technologies enabling the conversion of cellulose, which is generated predominantly from wood waste, paper waste and agricultural waste, into ethanol which would reduce or eliminate our dependency on corn as a primary feedstock, while also helping local municipalities deal with ever increasing demands on their garbage disposal sites.
Northern is led by a seasoned team of professionals with significant experience in the energy industry and global business operations. Learn More
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