Alto Ingredients Inc (ALTO)

[kel3]

Compiled Information that DIRECTLY Affects PEIX

Key Info from Aemetis/PEIX PR

import costs for grain sorghum (as of Q4 2012) from Argentina – feasible for ethanol plants with access to deepwater ports – is running $0.90 per bushel less than corn.

Potential winners for now? The Aemetis project; Pacific Ethanol (60 mgy ethanol plant located in Stockton, CA); we also like the Pacific Ethanol plant in Boardman

Advanced Biofuels RINs

those RINs are worth $0.40 each, compared to a nominal $0.03 for a corn ethanol RIN. For a reference sized (100 million gallon) ethanol plant, the difference in value is around $37 million, or $0.37 per gallon.

60 mgy corn ethanol plant which imported milo from Argentina in Q4 2012 at a cost savings of about
$0.90 per bushel under corn. We require approximately 22 million bushels per year at capacity, so the milo savings are more than $18 million per year.

Add $18 million to the $24 million per year AB RIN’s, subtract about $8 million for the increased cost of biogas, and the net increase in cash flow is about $34 million per year for the 60 mgy (former) corn ethanol plant

http://www.biofuelsdigest.com/bioinvest/the-milo-naires-corn-and-the-invisible-hand-of-the-biofuels-market/

Gov. Ethanol Incentives from Fiscal Cliff Legislation

1. $1.01-per-gallon tax credit for cellulosic ethanol made from corn plants, grasses, algae and sources
other than corn kernels

(Milo/Sorghum Would Be Included)

2. Owners of a renewable energy facility that start construction before the end of 2013 to get a full ten years worth of tax credits

(This Would Include Newly Referbished and Started Madera In 2013)

3. tax credits for biodiesel and renewable diesel have been reinstated for 2012 and 2013

(This Will Affect Corn Oil Extraction at All 4 Plants)

4. Gas stations that want to install pumps capable of distributing E85, which is 85 percent ethanol and 15 percent gasoline or those who add 15 percent ethanol —or E15 — pumps also can get a tax credit
under the bill.

5. Biorefinery Assistance program

6. Biobased Markets Program

7. Bioenergy Program for Advanced Biofuels and Biodiesel Fuel Education Program are extended through 2013

8. Biomass Research and Development program

9. Feedstock Flexibility Program for Bioenergy Producers

10. Biomass Crop Assistance Program

11. Forest Biomass for Energy and Community Wood Energy Program through the end of the year.