Pacific Ethanol To Produce Cellulosic Ethanol at its Madera Plant
February 16 2017 - 8:30AM
Pacific Ethanol, Inc. (NASDAQ:PEIX), a leading
producer and marketer of low-carbon renewable fuels in the United
States, and Edeniq, Inc., a biorefining and cellulosic technology
company, announced they have entered into a technology licensing
and purchase agreement to enable the production of cellulosic
ethanol at Pacific Ethanol’s Madera, California plant using
Edeniq’s Pathway and Cellunator™ Technologies.
The Madera plant has a total annual production
capacity of 40 million gallons, and is expected to produce up to
one million gallons per year of cellulosic ethanol with Edeniq’s
Pathway process. Installation is expected to be completed in the
third quarter of 2017.
Neil Koehler, Pacific Ethanol’s president and
CEO, stated: “Consistent with our strategy to improve yields and
increase production of advanced biofuels at our plants, we are
expanding cellulosic ethanol production to our Madera facility. We
began producing cellulosic ethanol using Edeniq’s technology at our
Stockton plant in December 2015, and the resulting bottom line
contribution is significant. Once commercial scale production is
reached at Madera, we expect the technology will increase earnings
by over $2 million annually. We will be working with the EPA to
qualify this production for generating D3 cellulosic RINs, which
provide an important premium, and we expect the approval to be
received near or shortly after we begin commercial operations. We
are also working with the California Air Resources Board to qualify
our cellulosic production at both our Stockton and Madera
facilities for additional carbon credit under the California Low
Carbon Fuel Standard.”
Brian Thome, president and CEO of Edeniq,
stated: “We are pleased to expand our relationship with Pacific
Ethanol and provide our Pathway and Cellunator Technologies to its
second ethanol plant. The low-cost profile of our technologies
offers ethanol producers an attractive option for enhancing ethanol
and corn oil yields and producing high-value cellulosic ethanol
using existing fermentation and distillation equipment. We are
excited to have over 2 billion gallons of ethanol capacity either
already under license or committed to commercial trials for our
Pathway Technology, with additional plants being added each
month.”
Edeniq’s Pathway Technology is a low-cost
solution for producing and measuring cellulosic ethanol from corn
kernel fiber utilizing existing fermenters at corn ethanol plants.
The Cellunator high-shear milling equipment is a leading
yield-enhancement technology that offers the most significant and
consistent increase in ethanol yield and corn oil recovery, and
produces cellulosic ethanol when integrated with Edeniq’s Pathway
Technology. The technology features a proprietary technical
validation process, quantifies the amount of cellulosic ethanol
produced and complies with the registration, recordkeeping, and
reporting required by the EPA to generate cellulosic D3 Renewable
Identification Numbers (RINs) as defined by the Renewable Fuel
Standard.
About Edeniq, Inc.Edeniq has
developed leading processes for producing low-cost cellulosic
sugars and cellulosic ethanol. Edeniq’s capital light and
operationally efficient solutions can be easily integrated into
existing biorefineries that produce ethanol, other biofuels,
biochemicals, and/or bio-based products. Edeniq currently sells or
licenses its technologies to biorefineries in the United States.
Edeniq was founded in 2008 and is headquartered in Visalia,
California with a field office in Omaha, Nebraska. More information
can be found at www.edeniq.com.
About Pacific Ethanol, Inc.Pacific
Ethanol, Inc. (PEIX) is the leading producer and marketer of
low-carbon renewable fuels in the Western United States. With the
addition of four Midwestern ethanol plants in July 2015, Pacific
Ethanol more than doubled the scale of its operations, entered new
markets, and expanded its mission to advance its position as an
industry leader in the production and marketing of low carbon
renewable fuels. Pacific Ethanol owns and operates eight ethanol
production facilities, four in the Western states of California,
Oregon and Idaho, and four in the Midwestern states of Illinois and
Nebraska. The plants have a combined production capacity of 515
million gallons per year, produce over one million tons per year of
ethanol co-products – on a dry matter basis – such as wet and dry
distillers grains, wet and dry corn gluten feed, condensed
distillers solubles, corn gluten meal, corn germ, corn oil,
distillers yeast and CO2. Pacific Ethanol markets and distributes
ethanol and co-products domestically and internationally. Pacific
Ethanol’s subsidiary, Kinergy Marketing LLC, markets all ethanol
for Pacific Ethanol’s plants as well as for third parties,
approaching one billion gallons of ethanol marketed annually based
on historical volumes. Pacific Ethanol’s subsidiary, Pacific Ag.
Products LLC, markets wet and dry distillers grains. For more
information please visit www.pacificethanol.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995Statements and
information contained in this communication that refer to or
include the Pacific Ethanol’s estimated or anticipated future
results or other non-historical expressions of fact are
forward-looking statements that reflect Pacific Ethanol’s current
perspective of existing trends and information as of the date of
the communication. Forward looking statements generally will be
accompanied by words such as “anticipate,” “believe,” “plan,”
“could,” “should,” “estimate,” “expect,” “forecast,” “outlook,”
“guidance,” “intend,” “may,” “might,” “will,” “possible,”
“potential,” “predict,” “project,” or other similar words, phrases
or expressions. Such forward-looking statements include, but are
not limited to, production levels of cellulosic ethanol and
premiums and enhanced profitability from cellulosic ethanol; the
timing of installation of Edeniq’s Pathway process; and Pacific
Ethanol’s other plans, objectives, expectations and intentions. It
is important to note that Pacific Ethanol’s plans, objectives,
expectations and intentions are not predictions of actual
performance. Actual results may differ materially from Pacific
Ethanol’s current expectations depending upon a number of factors
affecting Pacific Ethanol’s business. These factors include, among
others, adverse economic and market conditions, including for
ethanol and its co-products; prices for and premiums attributable
to D3 cellulosic RINs. These factors also include, among others,
the risks and uncertainties normally incident to the installation
of new technologies; and other events, factors and risks previously
and from time to time disclosed in Pacific Ethanol’s filings with
the Securities and Exchange Commission including, specifically,
those factors set forth in the “Risk Factors” section contained in
the Company’s Form 10-Q filed with the Securities and Exchange
Commission on November 8, 2016.
Pacific Ethanol Contacts:
Company IR Contact:
Pacific Ethanol, Inc.
916-403-2755
Investorrelations@pacificethanol.net
IR Agency Contact:
Becky Herrick
LHA
415-433-3777
Media Contact:
Paul Koehler
Pacific Ethanol, Inc.
503-235-8241
paulk@pacificethanol.net
Edeniq Contact:
Michael Russell
559-302-1777
mrussell@edeniq.com
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