This seems to make a lot of sense. Merge a cattle oriented technology company with an ethanol production company. They can go hand in hand in some interesting ways. That’s what eMerge Interactive is doing with PRIME BioSolutions.

eMerge Interactive, Inc. and the sole member of PRIME BioSolutions, LLC jointly announced that today they signed a definitive agreement pursuant to which PRIME will be merged into a subsidiary of eMerge. Upon completion of the transaction, eMerge will change its name to PRIME BioSolutions, Inc. and will be headquartered in Omaha, Nebraska.

The Company’s strategy will be to become one of the industry’s lowest-cost producers of ethanol. In using the IBR system, the Company expects that it will be able to significantly reduce, and possible eliminate, key production costs such as natural gas, the second largest cost factor in the production of ethanol by replacing it with biogas via anaerobic digestion of cattle waste and other residual streams from the co-located ethanol unit. In addition, the net corn cost, the largest cost factor in the production of ethanol, should be reduced because the co-product from corn fermentation (wet distiller’s grain) will be used as cattle feed in the adjacent cattle operation without incurring the additional costs to dry and transport the wet distiller’s grain.