A risk management solution
to help eliminate the volatility of
key raw material pricing.
Green Biologics recognizes that one of the biggest issues you face is month-to-month volatility of raw material pricing. These fluctuations have a profound effect on every aspect of your business and are virtually impossible to manage. Until now.
Lock in your raw material costs and start pricing products to dictate – rather than chase – product margins.
Our products offer price stability compared to petroleum-based products.
How PriceLock Works
PriceLock from Green Biologics gives you the ability to choose from two risk management plans to avoid volatility and lock in your costs, ensuring up to 12 months of margin stability on our n-butanol and acetone.
You’ve never had the ability to secure pricing like this before, and we believe it will be a welcomed relief as you manage budgets moving forward.
Bottom line: we’ve used our experience and industry knowledge to figure out a better way for you to plan, manage and stabilize your bottom line.
OPTION 1: PriceLock Edge
Green Biologics provides up to 12 months fixed-price sales contracts on n-butanol or acetone utilizing derivative instruments of market futures or forward purchase contracts.
OPTION 2: PriceLock Choice
Green Biologics provides the option of up to 12 months fixed-price sales contracts on n-butanol or acetone utilizing derivative instruments of call options contracts.
With either option, you’re committing to stability in the marketplace, renewable products and the comfort of knowing exactly what your pricing will be.
Green Biologics purchases corn and natural gas to match customer purchases, plus manages margin calls and witholding requirements
Green Biologics buys options on corn and natural gas to match customer purchase volume
Fixed price for all volume up to a certain amount over set term
Fixed price for all volume up to a certain amount over a period of time
Take-or-pay requirement by end of term
No take-or-pay obligation
6 to 12 months
(12 month maximum)
Potential to lock in price beyond 12 months based on options market