Pacific Ethanol (PEIX) Announces U.S. EPA Approval of Registration for Cellulosic Ethanol Production at Stockton, CA

September 12, 2016 9:00 AM EDT

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Pacific Ethanol, Inc. (NASDAQ: PEIX) announced the U.S. Environmental Protection Agency (EPA) has approved its registration for generating cellulosic ethanol and D3 cellulosic renewable identification numbers (RINs) at its Stockton, CA plant from corn fiber using Edeniq, Inc.’s Pathway Technology™. This is the first ever EPA registration incorporating this process.

Neil Koehler, the company’s president and CEO, stated: “The EPA-approved registration for generating cellulosic ethanol and D3 RINs is an important milestone in our strategy to be a leading producer of cellulosic ethanol. This further underscores our continued commitment to improving production yields, and diversifying our technology and feedstocks. We expect to produce over one million gallons per year of cellulosic ethanol at our Stockton facility. With the high-value D3 RINs, the carbon credit under California’s Low Carbon Fuel Standard, and the federal Second Generation Biofuel Producer tax credit, we expect that cellulosic ethanol production will materially contribute to the profitability of our Stockton facility. As we confirm and optimize our cellulosic ethanol production process, we will look toward expanding this to other Pacific Ethanol plants.”

Pacific Ethanol began producing cellulosic ethanol at its 60-million-gallon capacity per year Stockton, CA plant in December 2015 using the Edeniq, Inc. Pathway Technology™, which integrates Edeniq’s Cellunator™ high shear equipment with cellulase enzymes to convert corn kernel fiber to fermentable sugars. The process enables producers to quantify the amount of cellulosic ethanol produced within their plants and comply with the registration, recordkeeping and reporting required by the EPA to generate cellulosic D3 RINs as defined by the federal Renewable Fuel Standard.

Brian Thome, Edeniq’s president and CEO, stated: “This approval is a landmark for the ethanol industry and for Edeniq as it opens the door for low-cost production of cellulosic ethanol from corn kernel fiber in existing fermentation vessels.”

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