Now why would they do this?
Pacific Ethanol, Inc. (Nasdaq:PEIX), the leading marketer and producer of low-carbon renewable fuels in the Western United States, announced it will install corn oil separation technology at the Pacific Ethanol Magic Valley plant with the intention to further implement corn oil separation at the other Pacific Ethanol Plants by the end of the first quarter of 2013. The company has awarded ICM Inc., a leading provider of innovative technologies, solutions, and services to sustain agriculture and advance renewable energy, with a turn-key installation contract for its patented Advanced Oil Separation System™, which is expected to be installed at the Magic Valley plant by the close of 2012. The company anticipates corn oil separation will begin generating revenue in the first quarter of 2013.
Neil Koehler, the company's president and CEO, stated: "Consistent with our efforts to further diversify our revenue streams and improve plant performance, we will install corn oil separation technology at our Magic Valley plant. We expect to soon award future contracts for the three other Pacific Ethanol plants. Corn oil is a high value product for the Pacific Ethanol plants. The Magic Valley plant is expected to produce approximately 12 million pounds of corn oil per year, which at current prices would contribute as much as $4.5 million, or seven cents per gallon, of operating income annually."
