Pacific Ethanol Continues to Diversify Feedstock by Purchasing Additional
SACRAMENTO, Calif., Nov. 25, 2013 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc.
(Nasdaq:PEIX), the leading marketer and producer of low-carbon renewable fuels
in the Western United States, secured 103 million pounds of additional beet
sugar in a second agreement with the Commodity Credit Corporation, a division
of the USDA.
Combined with the company's October purchase, the total 270 million pounds of
sugar represents feedstock to produce approximately 20 million gallons of
ethanol. Both purchases have been priced at a substantial discount to current
and expected costs of a comparable amount of delivered corn.
Neil Koehler, the company's president and CEO, stated, "We are pleased to have
finalized a second agreement with the USDA to purchase sugar for biofuel
production. This transaction is consistent with our goals of diversifying our
feedstock, lowering production costs and producing low-carbon ethanol. This
week we began blending sugar with corn at our Magic Valley facility and plan
to expand this program to both our Columbia and Stockton facilities over the
next two months."
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (Nasdaq:PEIX) is the leading marketer and producer of
low-carbon renewable fuels in the Western United States. Pacific Ethanol also
sells co-products, including wet distillers grain ("WDG"), a nutritious animal
feed. Serving integrated oil companies and gasoline marketers who blend
ethanol into gasoline, Pacific Ethanol provides transportation, storage and
delivery of ethanol through third-party service providers in the Western
United States, primarily in California, Arizona, Nevada, Utah, Oregon,
Colorado, Idaho and Washington. Pacific Ethanol has an 85% ownership interest
in New PE Holdco LLC, the owner of four ethanol production facilities. Pacific
Ethanol operates and manages the four ethanol production facilities, which
have a combined annual production capacity of 200 million gallons. The
facilities in operation are located in Boardman, Oregon, Burley, Idaho and
Stockton, California, and one idled facility is located in Madera, California.
The facilities are near their respective fuel and feed customers, offering
significant timing, transportation cost and logistical advantages. Pacific
Ethanol's subsidiary, Kinergy Marketing LLC, markets ethanol from Pacific
Ethanol's managed plants and from other third-party production facilities, and
another subsidiary, Pacific Ag. Products, LLC, markets WDG. For more
information please visit www.pacificethanol.net.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
With the exception of historical information, the matters discussed in this
press release including, without limitation, the ability of Pacific Ethanol to
continue as the leading marketer and producer of low-carbon renewable fuels in
the Western United States; Pacific Ethanol's anticipated ethanol yields from
the purchased sugar; the effects of the purchased sugar on feedstock and
production costs; and the timing of blending sugar with corn at Pacific
Ethanol's production facilities are forward-looking statements and
considerations that involve a number of risks and uncertainties. The actual
future results of Pacific Ethanol could differ from those statements. Factors
that could cause or contribute to such differences include, but are not
limited to, adverse economic and market conditions; changes in governmental
regulations and policies; 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 Pacific Ethanol's Form 10-K filed with
the Securities and Exchange Commission on April 1, 2013.
CONTACT: Company IR Contact:
Pacific Ethanol, Inc.
IR Agency Contact:
Pacific Ethanol, Inc.
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