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BILL GATES GOES GREEN WITH ETHANOL PURCHASE...looks like good
company to be with........
While oil company execs have been given a tongue-lashing by the U.S. Senate for the soaring fuel prices, other firms like IBM, Corning and Cummins have been getting warm welcomes for saving energy while doing business. "In just one year, 2003, IBM cut its energy consumption 7%--and saved $38 million," Sen. Hillary Clinton gushed at a recent clean energy conference. And since it doesn't exactly take fuel to create software (although some of the IBM's first computers certainly looked like they ran on gas), that already puts IBM and other tech giants like Microsoft in a good light with enviros.
Even so, Microsoft co-founder Bill Gates seems to want a piece of the action when it comes to renewable energy. The billionaire's investment company, Cascade Investment, has agreed to invest $84 million in Pacific Ethanol (nasdaq: PEIX - news - people ) which will help it finance construction of several planned fuel-additive plants on the West Coast. Cascade's investment gives Gates a 27% stake in Pacific Ethanol.
Gates will be sharing the company with petroleum distributor SC Fuels, which owns the majority stake in the ethanol producer and is one of its biggest customers. It could be a lucrative investment, since federal law requires that the U.S. nearly doubles the amount of ethanol it uses annually to 7.5 billion in 2012 from 4 billion gallons in 2006.
Pacific Ethanol's President and Chief Executive Officer Neil Koehler said in a statement that he was "excited about the prospect of a long-term partnership with Cascade Investment." "Our mission is to be the leader in renewable fuels in the Western United States. This investment gives us the equity commitment required to quickly implement our plan to build out our first five ethanol plants."
the U.S. Senate for the soaring fuel prices, other firms like IBM, Corning and Cummins have been getting warm welcomes for saving energy while doing business. "In just one year, 2003, IBM cut its energy consumption 7%--and saved $38 million," Sen. Hillary Clinton gushed at a recent clean energy conference. And since it doesn't exactly take fuel to create software (although some of the IBM's first computers certainly looked like they ran on gas), that already puts IBM and other tech giants like Microsoft in a good light with enviros.
Even so, Microsoft co-founder Bill Gates seems to want a piece of the action when it comes to renewable energy. The billionaire's investment company, Cascade Investment, has agreed to invest $84 million in Pacific Ethanol (nasdaq: PEIX - news - people ) which will help it finance construction of several planned fuel-additive plants on the West Coast. Cascade's investment gives Gates a 27% stake in Pacific Ethanol.
Gates will be sharing the company with petroleum distributor SC Fuels, which owns the majority stake in the ethanol producer and is one of its biggest customers. It could be a lucrative investment, since federal law requires that the U.S. nearly doubles the amount of ethanol it uses annually to 7.5 billion in 2012 from 4 billion gallons in 2006.
Pacific Ethanol's President and Chief Executive Officer Neil Koehler said in a statement that he was "excited about the prospect of a long-term partnership with Cascade Investment." "Our mission is to be the leader in renewable fuels in the Western United States. This investment gives us the equity commitment required to quickly implement our plan to build out our first five ethanol plants."
Bill Gates Goes Green
Parmy Olson, 11.17.05, 10:34 AM ET
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While oil company execs have been given a tongue-lashing by the U.S. Senate for the soaring fuel prices, other firms like IBM, Corning and Cummins have been getting warm welcomes for saving energy while doing business. "In just one year, 2003, IBM cut its energy consumption 7%--and saved $38 million," Sen. Hillary Clinton gushed at a recent clean energy conference. And since it doesn't exactly take fuel to create software (although some of the IBM's first computers certainly looked like they ran on gas), that already puts IBM and other tech giants like Microsoft in a good light with enviros.
Even so, Microsoft co-founder Bill Gates seems to want a piece of the action when it comes to renewable energy. The billionaire's investment company, Cascade Investment, has agreed to invest $84 million in Pacific Ethanol (nasdaq: PEIX - news - people ) which will help it finance construction of several planned fuel-additive plants on the West Coast. Cascade's investment gives Gates a 27% stake in Pacific Ethanol.
Gates will be sharing the company with petroleum distributor SC Fuels, which owns the majority stake in the ethanol producer and is one of its biggest customers. It could be a lucrative investment, since federal law requires that the U.S. nearly doubles the amount of ethanol it uses annually to 7.5 billion in 2012 from 4 billion gallons in 2006.
Pacific Ethanol's President and Chief Executive Officer Neil Koehler said in a statement that he was "excited about the prospect of a long-term partnership with Cascade Investment." "Our mission is to be the leader in renewable fuels in the Western United States. This investment gives us the equity commitment required to quickly implement our plan to build out our first five ethanol plants."
More Faces In The News
04-01-05
Editor
Internet Rumor Claims Actor Denzel Washington Made Exorbitant Donation To Fisher House Foundation; Rumor Is False!
A Mount Vernon resident asked us to print a copy of the following email message she received concerning an alleged very large donation made by Denzel Washington:
"Denzel Washington recently visited BAMC (Brookes Army Medical Center, in San Antonio, Texas). This is where soldiers that have been evac'd from Germany come to be hospitalized in the States. They have buildings there called Fisher Houses. The Fisher House is a hotel that soldier's families can stay at, for little or no charge, while their soldier is staying in the hospital. BAMC has quite a few of these houses on base, but as you can imagine, they are almost filled to the brim most of the time. While Denzel Washington was visiting BAMC, they gave him a tour of one of the Fisher Houses. He asked how much one of them would cost to build. He got his check book out and wrote a check out for the full amount right there on the spot. The soldiers overseas were amazed to hear this story and want to get the word out to the American public, because it warmed their hearts to hear it. He has a son who is a Marine in Iraq."
The Mount Vernon Inquirer has investigated the facts surrounding the email and we have concluded that the facts are incorrect. Here is our investigative report:
Fort Sam Houston, which houses the Brooke Army Medical Center (BAMC), also includes on its property a Fisher House within walking distance of the medical center. Fisher Houses are a network of "comfort homes," essentially low-cost hotels built on the grounds of military medical centers in the U.S. and abroad that provide all the amenities of home and enable family members of servicemen to stay close to loved ones who are undergoing medical treatment for illness, disease, or injury. The modest fees charged by Fisher Houses (about $10 per night) make them accessible even to families with tight budgets (a situation common to many military families).
As might be expected with the U.S. military having been engaged in combat operations in Afghanistan and Iraq for the last few years, the demand for space in Fisher Houses at some military facilities has exceeded their capacities.
According to the Fisher House Foundation, when Denzel Washington was at Fort Sam Houston in December 2004, he did visit the Fisher House and learn of their need for additional facilities. At the time he expressed an interest in donating to the Fisher House Foundation, but he did not, as described above, "get out his checkbook" on the spot and write a check for the full amount needed to construct a new building. (Although Fisher House representatives initially told the press that Mr. Washington had already made a donation, they later said that although such a donation on the actor's part might be in the offering, it has not yet actually been made.)
Due to the generosity of the American public, the Fisher House Foundation has already collected enough money to build another house, although it will not necessarily be constructed at the Brooke Army Medical Center. Other possible sites for a new Fisher House include the Michael E. DeBakey Medical Center in Houston, the Haley VA Medical Center in Tampa, the Madigan Army Medical Center in Fort Lewis, Washington, the VA Medical Center in Palo Alto, California, and Fort Campbell, Kentucky.
One version of the Denzel Washington e-mail in circulation concludes, "By the way . . . He has a son who is a Marine in Iraq." Although Denzel Washington does have two sons (and also two daughters), neither of his sons is a Marine or is stationed in Iraq. One son is far too young to be serving in the military (he's only thirteen years old), and Denzel's older son, 21-year-old John David Washington, is currently a student and football star at Morehouse College in Atlanta.
MAYBE THIS NEWS WILL HELP? ARE THEY SPEAKING ABOUT US? MULTI MILLION DOLLAR QUESTION...
Pennsylvania Says Company May Build State's First Ethanol Plant
2006-04-17 16:10 (New York)
By Bruce Blythe
April 17 (Bloomberg) -- An unnamed company may announce
construction of Pennsylvania's first ethanol plant as demand for
the fuel additive increases, a spokesman for the state
environmental department said.
The company is ``looking at'' possible sites in the central
part of Pennsylvania to build the plant, Kurt Knaus, press
secretary for state environmental department secretary Kathleen
McGinty, said in a phone interview today. He declined to specify
which company is involved or when construction would start. Any
decision on the project is ``a few months off,'' Knaus said.
``We have some other companies looking at different parts of
the state as well,'' Knaus said. Pennsylvania is a ``prime
market'' for ethanol production ``because of our position in the
Northeast,'' Knaus said.
Demand for ethanol, used to make gasoline burn more
completely, is increasing because of the phase-out of a MTBE, or
methyl tertiary butyl ether, a rival additive. Ethanol use is
also being advocated by President George W. Bush, who in August
signed an energy bill requiring oil companies to use 7.5 billion
gallons of ethanol in gasoline annually by 2012, up from about 4
billion gallons in 2005.
A ``very substantial'' company is close to announcing
intentions to build a ``massive'' ethanol plant in central
Pennsylvania, McGinty said in an April 14 interview with
Associated Press.
The ethanol plant may be the largest one built east of the
Mississippi River and may be constructed within a year, MiGinty
told Associated Press, declining to name the company.
--Editor: Link.
Story illustration: Click on {ETHCTOTL <Index> GP <GO>} for
the average U.S. price of ethanol during the past year. See
the performance of the Chicago Board of Trade's ethanol
contract, type {DL1 <Cmdty> GPO <GO>}. For top energy news,
see {OTOP <GO>}.
To contact the reporter on this story:
Bruce Blythe in Chicago at (1) (312) 443-5927 or
bblythe@bloomberg.net.
To contact the editor responsible for this story:
Robert Dieterich at (1) (212) 617-4485 or
rdieterich@bloomberg.net.
HOPE UR RIGHT HERO...
looks like peix just got the upper hand in a big way...
PEIX: Pacific Ethanol announces it completes $84 mln equity inv
2006-04-17 09:46 (New York)
[Live In Play]
PEIX: Pacific Ethanol announces it completes $84 mln equity investment by
Cascade Investment (31.10 +1.82)
[Update]
Co announced today that it has completed the offering and sale of 5,250,000
shares of Series A Cumulative Redeemable Convertible Preferred Stock for $84
mln to Cascade Investment, L.L.C. The shares of preferred stock are
convertible into shares of common stock at an initial conversion ratio of two
shares of common stock for each share of preferred stock which, if converted
immediately, would result in the issuance of 10,500,000 shares of common
stock. PEIX also announced today that it has completed a debt financing for up
to a total of approximately $34 mln with Hudson United Bank, a division of TD
BankNorth, and Comerica Bank. A portion of the proceeds from the preferred
stock offering and all of the proceeds from the debt financing will be used to
complete construction of Pacific Ethanol's ethanol production plant in Madera
County, California. This plant is currently under construction and is
scheduled to be completed and begin operations in the 4Q06. The remaining
portion of the proceeds from the preferred stock offering will be used to pay
a portion of the costs of construction of other ethanol plants on the West
Coast. (Also see 8:36 comment related to this)
Briefing.com, Inc.
we ran thru 5mm shares
Congress to Boost Security, Add Detectors at Ports (Update1)
2006-04-05 14:53 (New York)
(Adds Lieberman's comments in sixth paragraph.)
By Jeff Bliss
April 5 (Bloomberg) -- Congress is likely to approve
measures this year to tighten security at U.S. ports, including
requiring the installation of radiation and nuclear detectors,
lawmakers said.
Legislation being considered in both the Senate and House
would also ease customs inspections for importers such as
Bentonville, Arkansas-based Wal-Mart Stores Inc., the world's
largest retailer. In exchange, the companies would be required
to tighten the security of their shipments.
Congressional Republicans, reacting to election-year
political pressures, have put the bipartisan-sponsored measures
on a fast track for committee consideration and passage this
year. The $4 billion, five-year proposals had been languishing
in committee until last month's public outcry over the abortive
effort by a Dubai-owned company to take over terminal operations
at six major U.S. ports.
``If anything positive came out of Dubai ports, it was the
awakening of American people to just how important port security
is,'' House Homeland Security Chairman Peter King, a New York
Republican, said during a Washington hearing yesterday. The
House legislation ``is a very significant step forward.''
Democrats, seeking to overcome Republicans' traditional
advantage with voters on defense and terrorism issues, last week
offered their own national security strategy, which embraces the
increased searches at ports that the legislation would mandate.
`Not Enough'
``Our government still has too little knowledge of the
contents of thousands of multi-ton containers,'' Joseph
Lieberman, a Connecticut Democrat, said today during a Senate
Homeland Security Committee hearing on port security. The Bush
administration's effort to bolster port security to date is
``not enough.''
Democratic Senators Hillary Rodham Clinton of New York and
Robert Menendez of New Jersey want Congress to pass a tougher
measure that would earmark an additional $1 billion for port
security and mandate the inspection of all cargo containers.
They are sponsoring legislation that would bar a foreign-owned
company from running terminal operations at U.S. ports.
The Democrats' push has introduced an element of
competition. ``The Republicans don't want to get beaten to the
punch on this,'' said Michael O'Hanlon, a homeland security
analyst at the Brookings Institution in Washington.
Democrats need to win six seats in the November elections
to capture the 100-seat Senate from Republicans and a gain of 17
seats to take control of the 435-member House.
Rating Slips
A March 16-17 Newsweek poll of registered voters suggested
support for Republicans has slipped. Fifty percent said they
would back Democratic candidates, compared with 39 percent who
supported Republicans. Bush's job performance rating stood at 36
percent, and 44 percent approved of his handling of homeland
security, down from 57 percent a year ago.
House and Senate committees are likely to consider the
port-security measures during the last week of this month. Both
versions of the legislation would enhance programs already
established by the Homeland Security Department.
A congressional audit released March 28 said that, at its
current pace, the department won't meet its goals for installing
monitors to screen cargo at all U.S. ports for nuclear weapons
and other radiological material.
Measures in both houses would require the department to
expand the data it puts into a computerized system used to
detect suspect cargo. A Senate report released on March 30 said
the system has ``significant flaws.''
Homeland Security Deputy Secretary Michael Jackson has said
the department is making improvements.
GreenLane Plan
Under the proposed measures, importers who agree to impose
their own stringent security could speed their shipments through
the customs process. The department would check within a year to
make sure participants in this program, which in the Senate
legislation is called GreenLane, have tight security over their
cargo.
The Senate report found that Customs authorities now spot-
check security on only one of a company's many shipment routes.
The department would need to develop guidelines for
securing containers, as well.
The legislation suggests increased spending for all these
initiatives through 2012. Overall, the legislation would boost
money for some existing programs by about 40 percent and create
new programs as well.
Incentives
Homeland Security spokesman Russ Knocke said that, while
department officials worry that some provisions duplicate their
efforts, they will work with Congress. ``We agree with the
concept that we should provide incentives to encourage security
practices that go beyond mandated law and regulation,'' he said.
Lawmakers, in their rush to pass legislation, must be
careful not to impose new standards and deadlines that will do
more harm than good, said Erik Autor, vice president of the
Washington-based National Retail Federation. ``I'm not sure
members have the time to think through these issues or want
to,'' he said.
Autor said he's concerned that both chambers' measures
would allow third-party firms, not U.S. Customs, to assess
whether companies are putting the tougher security in place.
``It provides no guidance whatsoever on who these third-party
validators would be,'' he said.
In addition, some countries such as China may not allow
Customs officials or a U.S.-based company to check security,
forcing the U.S. to use Chinese companies to do the validation.
The legislation could pass before ``some member of Congress
realizes we've outsourced our security to a foreign company,''
Autor said.
Trade Flow
Stephen Lamar, senior vice president of the American
Apparel and Footwear Association, based in Arlington, Virginia,
said the clothing industry lobbyist hasn't taken a position on
the legislation but would want any measure not to impede trade.
``We have concerns when people are rushing to do things
that aren't grounded in the balance of making commerce secure
and making commerce flow,'' he said.
James Carafano, a national security analyst with the
Washington-based Heritage Foundation, said he worries the
legislation might lull Americans into a false sense of security.
The legislation would do little to protect against land-
based attacks on ports and is too focused on preventing nuclear
weapons from entering U.S. harbors, he said. Terrorists probably
won't send such a valuable asset as a nuclear bomb through the
shipping system, Carafano said.
amazing...see who is on the other side of the trade for some of those shares is goldman sachs....doesnt get bigger than that
Xethanol Raises up to $46 Million in Equity Capital
2006-04-04 08:00 (New York)
NEW YORK--(BUSINESS WIRE)--April 4, 2006
Xethanol Corporation (OTCBB:XTHN), a biotechnology
driven ethanol company, announced today that it has signed definitive
agreements for up to $46 million in two separate equity financing
transactions.
Under the terms of the first transaction, Xethanol will initially
receive approximately $30 million from the issuance of shares of its
common stock to institutional and private investors. Additionally,
over the next three years, Xethanol could receive up to an additional
$10.6 million from the exercise of warrants issued to these investors.
More details and terms of the transaction will be made available in
the Company's upcoming filing of form 8-K with the Securities and
Exchange Commission. As part of this transaction, the company has
agreed to file a resale registration statement on Form SB-2 with the
Securities and Exchange Commission within 30 days following the
closing for the purpose of registering for resale the shares of common
stock sold in the financing.
Under the terms of the second transaction, Xethanol will initially
receive $4 million from the issuance of shares of its common stock to
Goldman Sachs & Co. Additionally, over the next three years, Xethanol
could receive up to an additional $1.4 million from the exercise of
warrants issued to Goldman Sachs. More details and terms of the
transaction will be made available in the Company's upcoming filing of
form 8-K with the Securities and Exchange Commission.
Christopher d'Arnaud-Taylor, Chairman and CEO of Xethanol stated
"We have been steadily building our business opportunities over the
last year in preparation for this significant capital infusion which
will now allow us to execute these plans. They include the expansion
of our existing facilities, new plants in the southeast and northeast
regions, and, most importantly, the integration and commercialization
of our technologies. Having this capital really marks the beginning of
our ability to realize our stated goal of being a leader in the
emerging biomass-to-ethanol industry by employing cutting edge
technologies in the conversion of low-cost biomass and other waste
streams."
Mr. d'Arnaud-Taylor further stated "The Company is extremely
fortunate to gain the support of the investors participating in these
financings. It is gratifying to see our business model validated."
About Xethanol Corporation
Xethanol Corporation's goal is to be the leader in the emerging
biomass-to-ethanol industry. Xethanol's mission is to optimize the use
of biomass in the renewable energy field and convert biomass that is
currently being abandoned or land filled into ethanol and other
valuable co-products, especially xylitol. Xethanol's strategy is to
deploy proprietary biotechnologies that will extract and ferment the
sugars trapped in these biomass waste concentrations. Xethanol's
strategic value proposition is to produce ethanol and valuable
co-products cost effectively with ethanol plants located closer to
biomass sources. In Iowa, Xethanol owns two ethanol production
facilities, where it is deploying these technologies. For more
information about Xethanol, please visit its website at
http://www.xethanol.com.
more money for ethanol....when is our day???
Xethanol Raises up to $46 Million in Equity Capital
2006-04-04 08:00 (New York)
NEW YORK--(BUSINESS WIRE)--April 4, 2006
Xethanol Corporation (OTCBB:XTHN), a biotechnology
driven ethanol company, announced today that it has signed definitive
agreements for up to $46 million in two separate equity financing
transactions.
Under the terms of the first transaction, Xethanol will initially
receive approximately $30 million from the issuance of shares of its
common stock to institutional and private investors. Additionally,
over the next three years, Xethanol could receive up to an additional
$10.6 million from the exercise of warrants issued to these investors.
More details and terms of the transaction will be made available in
the Company's upcoming filing of form 8-K with the Securities and
Exchange Commission. As part of this transaction, the company has
agreed to file a resale registration statement on Form SB-2 with the
Securities and Exchange Commission within 30 days following the
closing for the purpose of registering for resale the shares of common
stock sold in the financing.
Under the terms of the second transaction, Xethanol will initially
receive $4 million from the issuance of shares of its common stock to
Goldman Sachs & Co. Additionally, over the next three years, Xethanol
could receive up to an additional $1.4 million from the exercise of
warrants issued to Goldman Sachs. More details and terms of the
transaction will be made available in the Company's upcoming filing of
form 8-K with the Securities and Exchange Commission.
Christopher d'Arnaud-Taylor, Chairman and CEO of Xethanol stated
"We have been steadily building our business opportunities over the
last year in preparation for this significant capital infusion which
will now allow us to execute these plans. They include the expansion
of our existing facilities, new plants in the southeast and northeast
regions, and, most importantly, the integration and commercialization
of our technologies. Having this capital really marks the beginning of
our ability to realize our stated goal of being a leader in the
emerging biomass-to-ethanol industry by employing cutting edge
technologies in the conversion of low-cost biomass and other waste
streams."
Mr. d'Arnaud-Taylor further stated "The Company is extremely
fortunate to gain the support of the investors participating in these
financings. It is gratifying to see our business model validated."
About Xethanol Corporation
Xethanol Corporation's goal is to be the leader in the emerging
biomass-to-ethanol industry. Xethanol's mission is to optimize the use
of biomass in the renewable energy field and convert biomass that is
currently being abandoned or land filled into ethanol and other
valuable co-products, especially xylitol. Xethanol's strategy is to
deploy proprietary biotechnologies that will extract and ferment the
sugars trapped in these biomass waste concentrations. Xethanol's
strategic value proposition is to produce ethanol and valuable
co-products cost effectively with ethanol plants located closer to
biomass sources. In Iowa, Xethanol owns two ethanol production
facilities, where it is deploying these technologies. For more
information about Xethanol, please visit its website at
http://www.xethanol.com.
Forward-Looking Statements
Certain matters discussed in this press release are
"forward-looking statements." These forward-looking statements can
generally be identified as such because the context of the statement
will include words, such as "expects," "should," "believes,"
"anticipates" or words of similar import. Similarly, statements that
describe Xethanol's future plans, objectives or goals are also
forward-looking statements. Such forward-looking statements are
subject to certain risks and uncertainties, including the financial
performance of Xethanol, as appropriate, which could cause actual
results to differ materially from those currently anticipated.
Although Xethanol believe the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it
cannot give any assurance that their expectations will be attained.
Shareholders, potential investors and other readers are urged to
consider these factors carefully in evaluating any forward-looking
statements. Certain factors could cause results and conditions to
differ materially from those projected in these forward-looking
statements, and some of these factors are discussed below. These
factors are not exhaustive. New factors, risks and uncertainties may
emerge from time to time that may affect the forward-looking
statements made herein. These forward-looking statements are only made
as of the date of this press release and Xethanol does not undertake
any obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
Thu Mar 30, 6:45 AM ET
Gasoline prices will be unusually high and shortages might occur this summer, because the U.S. ethanol industry can't keep up with the demand for fuel-grade alcohol to mix with gasoline, the head of the U.S. Energy Information Administration told a Senate committee Wednesday.
ADVERTISEMENT
Merely "short-term challenges," countered Bob Dinneen, president of the Renewable Fuels Association, the ethanol trade group. Whatever can't be produced here can be imported, he said.
But imported ethanol, mostly from Brazil, carries a 54-cents-per-gallon tariff that would boost fuel prices even more, unless it were waived. (Story: Energy independence spurs Brazil to boost ethanol goals)
Ethanol - grain alcohol made mainly from corn in the USA - is being promoted by the auto and ethanol industries and the government as a substitute for gasoline, usually in a mix called E85 that is 85% ethanol and 15% gasoline.
But the comments Wednesday at the Senate Environment and Public Works Committee underlined how distant a goal that is. The hearing wasn't even about a goal as ambitious as E85. It was to discuss ethanol as a substitute for MTBE, a clean-air additive in gasoline. Replacing it with ethanol would require only about 8% as much ethanol as E85 requires.
Refiners have used MTBE for years and now are discontinuing it because MTBE can taint water supplies and Congress has refused to protect them from MTBE lawsuits. Ethanol is the only ready substitute.
Dinneen pointed out that 33 ethanol plants are under construction and that some of the 97 others already producing are being expanded.
But EIA, in a report last month warning of shortages, said that "new (ethanol) facilities will not start soon enough to meet 2006 demand." That, EIA head Guy Caruso told the committee, "could cause temporary supply dislocations and may cause price volatility."
Ethanol mainly is made in the Midwest. But demand should be heaviest in the Northeast and Texas because of special clean-air fuel requirements there. Shipping alcohol costs more and takes longer because ethanol attaches to any moisture present and could contaminate petroleum pipelines - the cheap, fast way to ship.
EIA has forecast summer gasoline prices averaging about $2.50 per gallon, or 12 cents more than last year. It has not, however, directly blamed ethanol shortages.
EIA reported Wednesday that U.S. inventories of gasoline - though still robust - dropped 5.4 million barrels last week, the biggest drop since the week ended Aug. 22, 2003.
The wholesale price of gasoline for summer-month delivery rose several cents a gallon, to about $1.91.
Ethanol, by contrast, ranged from about $2.49 to $2.52.
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ffi's process on the backend, is any of this process patentable? How does one protect its process from being copied by other plants coming on line?
ceo of peix on cnbc....no news is bad news..
just saw a headline on cnbc that at 3:00 pm today which is 45 minutes they will be talking about the ethanol heavy hitters.
Nymex Gasoline Futures Rise on Ethanol Concern, Gain in Oil
2006-03-23 13:58 (New York)
By Robert Tuttle
March 23 (Bloomberg) -- Gasoline futures rose on concern
that U.S. supplies of the additive ethanol may not be sufficient
to meet rising demand in the months ahead. Prices also rose
following a gain in crude-oil futures.
Refineries are phasing out use of the additive MTBE, or
methyl tertiary butyl ether, and starting to produce gasoline to
be blended with ethanol. Production of ethanol may not rise fast
enough this year to meet demand, according to the U.S. Energy
Department.
``I don't frankly think that all of the additional ethanol
capacity is going to be available for all this blending'' in May
and June, said Andy Lipow, president of Houston consultant Lipow
Oil Associates LLC. ``The way the industry will solve this
problem, some people will go back to blending MTBE gasoline.''
Gasoline for April delivery rose 6.1 cents, or 3.5 percent,
to $1.7975 a gallon as of 1:45 p.m. on the New York Mercantile
Exchange. Prices are up 14 percent from a year ago.
Crude oil for May delivery increased $1.88, or 3 percent,
to $63.65 a barrel in New York. The futures are up 18 percent
from a year ago.
Ethanol will begin to replace MTBE in reformulated gasoline
after the Energy Policy Act of 2005 takes effect in May. The act
removes the requirement that oxygenates like MTBE be added to
gasoline. Many refiners say that requirement has shielded them
from lawsuits relating to MTBE, which has been linked to
groundwater contamination.
Ethanol Demand
Ethanol demand could reach 410,000 barrels a day by the
middle of 2006, Lipow wrote in a March 19 report, citing Energy
Department data. By the end of the year, ethanol production
capacity is expected reach about 400,000 barrels a day, he said.
``Where does that leave us this summer?'' Lipow wrote.
``Imports will fill some of the gap. But the balance between
ethanol supply and demand is really quite tight.''
April gasoline futures covering reformulated fuel to be
blended for use with ethanol, known as RBOB, fell 4.95 cents, or
2.6 percent, to settle at $1.848 a gallon in New York yesterday.
Use of the RBOB contract is rising as trading slows in the
current contract, which covers gasoline containing the additive
MTBE. Since Jan. 23, open interest in the current gasoline
contract has fallen about 22,000 and open interest in the RBOB
contract has risen by about 24,000, according to data compiled
by Bloomberg.
Heating oil futures for April delivery rose 3.74 cents, or
2.1 percent, to $1.7825 a gallon in New York. Prices are 16
percent higher than a year ago.
U.S. `Appears' to Have Adequate Ethanol, Bodman Says (Update3)
2006-03-22 12:16 (New York)
(Adds analyst comments in seventh and eighth paragraphs).
By Tina Seeley
March 22 (Bloomberg) -- The U.S. right now ``appears'' to
have adequate supplies of ethanol, a grain-based gasoline
additive, to meet demand, Energy Secretary Samuel Bodman said.
There are ``a number of people concerned about'' ethanol's
ability to fill the demand for gasoline additives, Bodman told
reporters after a speech in Washington. Concern about ethanol
has grown because use of another additive, MTBE, is being phased
out. MTBE, or methyl tertiary butyl ether, has been linked to
groundwater contamination.
The Energy Information Administration, the statistical arm
of the Energy Department, warned in a report last month that
ethanol production might not rise fast enough to meet demand in
the eastern U.S. and Texas, where there may be some price
volatility.
President George W. Bush included a 65 percent increase in
government spending on research and development of ethanol and
other biofuels in his 2007 budget. The goal is for biofuels to
replace 75 percent of U.S. oil imports from the Middle East by
2025, Bush said in his State of the Union speech on Jan. 31.
Ethanol is blended with gasoline to increase available
gasoline supplies and reduce emissions.
The near-term increase in ethanol demand would result in
``some price gyrations in ethanol markets, I would think, as
MTBE phases out,'' Bodman said. ``New ethanol plants are
starting up at a pretty significant clip right now.''
`Child's play'
Potential problems from companies voluntarily switching
from MTBE to ethanol are ``child's play,'' compared with the
disruptions experienced after two hurricanes hit the Gulf of
Mexico last year, Deborah White, a commodities economist at
Societe Generale SA, said in an interview today.
The government is ``moderately likely'' to issue waivers to
companies that are unable to meet requirements for gasoline
additives, White said. The U.S. Environmental Protection Agency
will ``only issue a waiver at the very last minute if it's clear
that otherwise there would be a major price spike to, say, $3 a
gallon'' for gasoline, she said.
Bodman said he has not heard of any companies that will
request waivers.
There is also concern about the ability to transport
ethanol for use in gasoline sold at retail stations, since the
fuel cannot be combined with gasoline in pipelines.
``We're going to have to be more effective than we have
been in transporting ethanol, and so there may be some
dislocations,'' Bodman said. ``But based on what I can see so
far, there appears to be pretty good response to the
situation.''
--With reporting by Sara Walker and Nick Salter in London.
Editor: Banker.
is our south african office set up yet....
By Antony Sguazzin and Danielle Rossingh
March 16 (Bloomberg) -- South Africa may spend as much as $800
million in developing an ethanol industry as rising oil prices
prompt the government to look for cheaper sources of motor fuel for
the country's 46.9 million people.
The nation is studying developing eight plants able to make 1.1
billion liters of the fuel, equivalent to a 10th of the country's
gasoline, Rian Coetzee, the head of the agro-industries unit of the
state-owned Industrial Development Corp., said in an interview from
Johannesburg today. It is considering producing the fuel from sugar,
sorghum and corn.
U.S., Brazilian and European companies have been investing in
ethanol plants after crude oil prices gained 83 percent over the
past two years. About 40 percent of South Africa's fuel needs are
met by plants run by Sasol Ltd. and state-owned PetroSA Ltd. that
convert coal and natural gas into products such as diesel. The rest
is met through imports of crude.
``The developments taking place in the ethanol industry are
just as important as the invention of the internet,'' Roland Jansen,
the founder of the $1.9 billion fund-management arm at
Liechtensteinische Landesbank in Vaduz, said in an interview today.
``In five years' time, we will be able to go to any gas station
anywhere in the world, and choose between ethanol, gasoline or
biodiesel.''
More Air
Ethanol is a form of alcohol that, when added to gasoline,
increases its oxygen content, causing the fuel to burn more
completely. The South African plants, each costing $60 million to
$100 million, may use sugar to produce the fuel.
``This is an announcement of a national initiative,'' Coetzee
said, adding that talks had begun with agricultural companies on
building the plants. He declined to identify them.
The study will consider introducing sugar-beet farming to
supply plants in Eastern Cape province. It will also look at sugar
cane production in the eastern KwaZulu-Natal province, where Illovo
Sugar Ltd. and Tongaat Hulett Group Ltd. run plantations. Remgro
Ltd.'s Transvaal Sugar Ltd. also produces sugar in South Africa.
The use of sorghum and corn in other parts of the country will
be considered at a later stage, Coetzee said.
The plan is separate from a 7 billion-rand ($1.2 billion)
project announced on Feb. 23 by Sterling Waterford Holdings Ltd. and
Ethanol Africa Ltd. to build corn-to-ethanol plants in the country.
Cheap Corn
While sugar is easier to convert into ethanol than corn, the
grain is cheaper in South Africa, Philip Bouwer, the managing
director of Sterling, said in an interview from Cape Town.
White sugar prices in London rose to $466.20 a metric ton on
Feb. 3, the highest since 1989 and have gained 68 percent over the
last year. While yellow corn, traded in Johannesburg, has risen 65
percent over the last year to 1,012 rand a ton its record is 1,845
rand on Jan. 28, 2002.
``Corn is the way to go in this country,'' Bouwer said. ``It
doesn't help you if you have high efficiencies if its is going to
cost you.''
Sugar prices may more than double to as much as 40 cents a
pound as demand for ethanol rises, Jansen said.
Companies involved in South Africa's corn industry include
Afgri Ltd. and closely held Senwesbel Ltd. Sterling may ask the IDC
to invest in its projects, Bouwer said.
Sasol, South Africa's largest oil company, said on Feb. 9 that
it's studying a plant to produce diesel from soy beans together with
the energy ministry's Central Energy Fund. The fund is the unit
working with the IDC.
South Africa may eventually be able to export ethanol,
Jansen said.
``The Japanese government is preparing legislation which will
allow for 5 percent ethanol being mixed into gasoline,'' He said.
``Importing ethanol from South Africa will be cheaper for them than
Brazil, because it's nearer.''
--Editor: Griffiths (jwc/ldk).
gpre is trading at 48 dollars, they are currently trying to build plants and are still trying to obtain permits?????we are not far behind this company maybe even even with them... 48 dollars for a company still hoping to build a plant...sounds very nice.
looks like each press release keeps fortifying the foundation of this stock. One question does startech own the patents for their plasma converter?
what is the next step we are waiting on for the 84 million bond authorization to come to fruition?
just saw my first e85 commercial on cnbc....go green live yellow. All the yellow gas caps.
question for the group...how is the price of the etahanol that nsol will be producing in the future figured out? From the press release, eco-energy will be taking all the ethanol we hope to produce off our hands and not charge us any fee (FOB) for transportation. The contract states we are in biz together for 10 years. Strictly for arguments sake ffi says they will sell one years production at 5 dollars a barrel and the prevailing rate for that year is 3 dollars a barrel for ethanol....what happens now? ..... obviously making up these prices to get across the question,
where did i say i dont believe in the stock?? But, if you are not concerned that OUR stock has provided nothing but positive news stories over the last few months in a market sector that is screaming and we presently cant break 85 cents???
10 dollars by the end of the year....pass the pipe to the rest of us...reality this stock cant stay above 1 dollar, helllloooo. I own the stock, even i get sick reading some posts. Can we stay above 1 dollar first??? sorry for the cold water.
can u post the website where you saw the cell phone shoot the bullets??
take a look...
By Daniel Enoch
Feb. 9 (Bloomberg) -- Archer Daniels Midland Co., the
world's biggest ethanol producer, said Columbus, Nebraska, will
be the site of one of two new planned corn milling plants as it
expands production of the fuel.
The plant, to be built next to an existing ethanol
production facility in Columbus, will have an initial annual
capacity of 275 million gallons, Decatur, Illinois-based Archer
Daniels said today in statement distributed by PRNewswire.
Construction is expected to be completed in early 2008.
ADM in September announced plans to expand ethanol capacity
by 500 million gallons through the addition of two dry milling
plants at existing company facilities.
--Editor: Enoch
Story illustration: To see ADM's share performance, type
{ADM US <Equity> GP D <GO>}. For more commodity news, see
{CTOP <GO>}.
To contact the reporter on this story:
Daniel Enoch in Washington at (1) (202) 624-1842 or
denoch@bloomberg.net
To contact the editor responsible for this story:
Steve Stroth at (1) (312) 443-5931 or sstroth@bloomberg.net
the article is obviously very positive but fuel efficiency will be an issue out of the shoot, especially with the shortage of available gas stations.
how will our end product of ethanol differ from the cellulose/biomass end product of ethanol thats currently being produced? Will it be exactly the same except we have a cheaper way of producing the end product?
on the publicity front there was a great couple page article in the feb 6 issue of fortune magazine titled the future of fuel. Very positive article, with a full pg interview with richard branson and his bullish outlook for the industry, als o mentions gates, as well as venture capital players getting involved in the game.
coming up next on cnbc...
ethanol debate still to come on cnbc...
can someone explain the positives and negatives comparing the present corn stalk type of ethanol plants that are up and running with the potential waste to ethanol plant that ffi is trying to put together. I understand the corn stalk ethanol has a problem with really cold weather and is expensive to produce, what are ffi type of solution drawbacks/positives.
front page of the wall st journal, panda energy awarded a 120 million dollar contract to build an ethanol plant in hereford texas. The town gave them 382 acres to build the manure to ethanol plant, with more to be built after this one. The race is on with lots of different ways to make ethanol, and money to go after it.
the other seller according to bloomberg was long lane capital which filed to sell 405,000 shares as of dec 16th. Nice article on ethanol in the wall street journal today, maybe helps us out.