Chromatin and Pacific Ethanol Sign Multi-Year Agreement for Locally-Grown
Sorghum in Ethanol Production
CHICAGO -- February 18, 2013
Chromatin, Inc., a leading provider of innovative crop breeding technology,
sorghum seed products and feedstocks, and Pacific Ethanol, Inc. (NASDAQ:PEIX)
a leading producer of low-carbon renewable fuels in the Western U.S.,
announced today they have entered into a multi-year agreement to produce,
deliver and use locally grown sorghum in the production of ethanol. The
agreement covers up to 30,000 acres of Chromatin sorghum to be grown over
multiple years and supplied to Pacific Ethanol.
“We are pleased to extend our collaboration with Pacific Ethanol, which
previously confirmed that locally-grown sorghum is well-suited to ethanol
production. We also welcome the opportunity to provide crop producers in
California with a new market for their products by providing sorghum
feedstocks that serve as an economical and energy efficient source of
biofuel,” Chromatin Chief Executive Officer Daphne Preuss said.
“We have taken initiatives to diversify our feedstock base and further reduce
the carbon profile of our ethanol. Our agreement with Chromatin represents one
of these important initiatives and will help California farmers to produce
sorghum for production of low carbon ethanol and high value animal feed,” said
Neil Koehler, CEO of Pacific Ethanol.
Chromatin is currently working with California growers who are attracted to
sorghum as a grain source because it is easy to grow, uses less fertilizer and
water than corn and is tolerant to both heat and drought conditions. It is
also an effective double crop alternative behind wheat or in rotation with
cotton and vegetable crops. In addition, the residue from the harvest of
sorghum grain can be used as high quality animal feed. “As the benefits of
sorghum become more widely known, especially its resiliency, flexibility and
its affordability compared to corn, we are optimistic that it will become the
feedstock of choice in ethanol production,” Preuss said.
Ethanol plants in California have been seeking alternative crops to corn to
reduce feedstock costs, to improve their carbon footprint and to source
feedstock from locally grown energy-efficient crops. California-grown sorghum
has proven to be cost effective and energy efficient, and using sorghum grain
enables ethanol producers to qualify as Advanced Bio-fuel Producers and become
eligible for financial incentives.
About Chromatin, Inc.
Chromatin Inc. develops sorghum for both traditional agriculture and
applications in renewable energy. It provides high quality sorghum seeds to
growers and producers who are attracted to the crop’s rapid maturation,
tolerance to heat, cold and drought and high yields. Chromatin has optimized
its product portfolio to create sorghum feedstocks that serve as ideal
renewable resources for emerging bio-based industries such as liquid
transportation fuels, chemicals, materials and biopower. Today, Chromatin’s
products are sold in the U.S. and in more than 20 countries, where its sorghum
seed is planted on over 4 million acres worldwide. For additional information,
please visit www.chromatininc.com.
John Fulcher, 312-292-5417
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