U.S Fuel Corp. (fka USFF)

[tom8oes]

http://www.ethanolmarketplace.com/030706_news1.asp

Over $5 Billion Needed for Construction of Ethanol Plants to Meet 2012 Energy Act Deadline


03.07.06 -- New York, NY--Conflict in oil producing countries abroad and the signing of the Energy Act at home are creating an increasing demand for ethanol in the United States, and those who can effectively create production capacity appear poised to reap the benefits.

These were among the topics discussed Mar. 7 at the first "Investing in Ethanol Production" breakfast briefing for the press, hosted by investment bank WestLB.

Panelists provided background information and answered questions on the financing, regulatory and strategic development challenges facing aspiring ethanol producers.

"The recently enacted Energy Act requires the blending of 7.5 billion gallons of ethanol and biodiesel into motor fuel by 2012, and currently we only have the capacity to produce half that amount," said Tom Murray, panelist and Co-Head of the Loan & Debt Capital Markets Group at WestLB.

"Add to that a national desire to decrease dependence on foreign petroleum, and we expect that ethanol production facilities will be a significant growth market through the end of the decade," he said.

Joining Tom on the panel were Tod McGreevy, senior consultant with energy advisory firm Muse-Stancil, Rohit Chaudhry, partner with the law firm Chadbourne & Parke, and David Black, chief operating officer of ASAlliances Biofuels.

Other topics included the appeal of ethanol in capital markets, hurdles in ethanol project financing, ethanol supply and demand outlook for 2006 and beyond, and recent legislative developments for the ethanol sector.

The briefing follows WestLB's successful closing last month of a $275 million senior secured credit facility for the construction of the largest ethanol production facilities in the country, to be built by ASAlliances.

The unprecedented financing structure for the 300 million gallon facility reflected the complexities of expanding the national ethanol production market.