November 11, 2010
Pacific Ethanol, Inc. announced that its subsidiary, Kinergy Marketing LLC, has signed an exclusive marketing agreement with AE Biofuels, Inc. subsidiary, AE Advanced Fuels Keyes, Inc. (“AE Keyes”) to sell all ethanol produced by the 55 million gallon per year ethanol production facility located in Keyes, California. AE Keyes, operating the facility under lease with Cilion Inc, is in the process of retrofitting the facility and has announced that it expects the facility to be operational by the first quarter of 2011.
Neil Koehler, PEI’s president and CEO, stated, “We are pleased to have AE Keyes as a marketing partner. Kinergy has consolidated a supply portfolio of marketing agreements with the largest California ethanol facilities that are operating or plan to be operating in 2011 when the implementation of California’s Low-Carbon Fuel Standard begins. This brings significant value to Pacific Ethanol and its California marketing partners with the rapidly increasing demand expected for low-carbon ethanol produced in California. Our comprehensive system of supply, distribution and service handles a majority of the low-carbon ethanol produced in California, delivering premium value to our customers. The strength of our position in the market is further supported by recent voting results in California.”
Earlier this month, California voters defeated Proposition 23, which would have suspended California Assembly Bill 32, which requires a reduction in greenhouse gas emission levels in the state. The ethanol produced by each of the California ethanol production facilities within Kinergy’s supply portfolio has the lowest carbon intensity rating of commercially available transportation fuel in the United States, according to the California Air Resources Board. Beginning in January 2011, the California Low-Carbon Fuel Standard will require refineries to reduce the carbon intensity of their fuel by 10% over the next nine years.
See Also :
Pacific Ethanol To Restart Stockton, CA Ethanol Production Facility
AE Biofuels Secures Funding for Operation of 55 Million Gallon Ethanol Plant