Pacific Ethanol (PEIX) Shares Pop on Ethanol Deal with AE Keyes
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Pacific Ethanol, Inc. (Nasdaq: PEIX) shares have jumped today, though off of day's highs, following news that their subsidiary, Kinergy Marketing LLC, signed to sell all ethanol produced by AE Advanced Fuels Keyes' California facility. Shares jumped as much as 12.5%, but are currently up about 9.3% to $0.87.
AE Advanced's Keyes, California facility is expected to come online in Q111 and produce 55 million gallons of ethanol per year.
Pacific Ethanol's President and CEO, Neil Koehler, commented, "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 announcement comes on the heels of California voters defeating Proposition 23, which would have suspended California Assembly Bill 32, which requires a reduction in greenhouse gas emission levels in the state, earlier in the month.
With each of Kinergy's facilities producing ethanol with the lowest carbon intensity rating of commercially available transportation fuel in the U.S., they are well-positioned when, 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.
AE Advanced's Keyes, California facility is expected to come online in Q111 and produce 55 million gallons of ethanol per year.
Pacific Ethanol's President and CEO, Neil Koehler, commented, "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 announcement comes on the heels of California voters defeating Proposition 23, which would have suspended California Assembly Bill 32, which requires a reduction in greenhouse gas emission levels in the state, earlier in the month.
With each of Kinergy's facilities producing ethanol with the lowest carbon intensity rating of commercially available transportation fuel in the U.S., they are well-positioned when, 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.
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