California Ethanol Producer Pacific Ethanol Stockton Partners with Edeniq to Expand Production

VISALIA, Calif., Jan. 11, 2013

Edeniq's Cellunator™ technology mills corn and other plant materials into 'right-sized' particles of feedstock that can be more efficiently converted into the plant sugars needed to produce biofuels. Beginning this quarter, Edeniq will install Cellunators™ at the Pacific Ethanol plant in Stockton, California.  In addition, Edeniq will deploy OilPlus™ technology at the Stockton plant.  OilPlus™ combines thermal, mechanical, and chemical treatments to improve the recovery of corn oil, a valuable co-product that can be used for feed and other bio-industrial products. 

With four ethanol plants in the Western United States including California, Oregon and Idaho, Pacific Ethanol's facilities have the combined ethanol production capacity of 200 million gallons per year.   The Stockton, California plant was built in 2008 and has the capacity to produce 60 million gallons per year.  Edeniq's technology is expected to increase the facility's ethanol yields by 2-4%.     

"Edeniq's technology will allow us to increase efficiency and create additional value for our customers," said Neil Koehler, CEO of Pacific Ethanol, Inc. (NASDAQ:PEIX).  "Our partnership with Edeniq improves our ability to compete in the marketplace."

Edeniq currently has technology agreements with six ethanol producers across the U.S., and Pacific Ethanol will be the company's second plant partner in California.  In addition, Edeniq owns and operates a demonstration-scale production facility in Visalia, California, which is currently converting a range of cellulosic feedstock into low-cost cellulosic sugars and cellulosic ethanol. 

In June, Edeniq received a $3.9 million grant from the California Energy Commission as part of California's Alternative and Renewable Fuel and Vehicle Technology Program.  The grant was given to Edeniq to help fund further developments and innovative enhancements to Edeniq's proprietary cellulosic ethanol technology, enabling the low capital cost addition of cellulosic ethanol production to corn-based ethanol plants in California. 

"With Pacific Ethanol as a customer, we are continuing our commitment to unlock the sugar conversion process and gain efficiencies each step of the way," said Brian Thome, President and CEO of Edeniq.  "This installation is just the beginning of our work with Pacific Ethanol to scale sustainable fuels."