Pacific Ethanol is the leading producer and marketer of low-carbon renewable fuels in the Western United States. We manage and operate four ethanol production facilities located in California, Oregon and Idaho. We own an 96% interest in the four plants. The plants have a combined production capacity of 200 million gallons per year. The Columbia plant in Boardman, Oregon, the Magic Valley plant in Burley, Idaho and the Stockton plant in Stockton, California are currently operating at full capacity. The Madera, California plant is not currently operating.
Pacific Ethanol has a differentiated business plan from the rest of the ethanol industry, which we refer to as our “destination model.” The plants are located in close proximity to our customers. As a result, the plants are able to produce and sell Wet Distillers Grain (WDG), which avoids an expensive drying process. The plants therefore consume less natural gas than most ethanol production facilities. In addition, the cost of transporting fuel and feed to our local customers is lower than for plants located in the Midwest. According to the California Air Resource Board, ethanol produced by our plants has the lowest carbon intensity of any commercially available transportation fuel produced in the United States.
Driven By Demand ®
Ethanol is an integral part of the country’s transportation fuel, currently representing nearly 10% of the overall gasoline supply in the Unites States. Ethanol has many distinct advantages as a component of our transportation fuels. It is made from domestically produced renewable resources and reduces air pollution and carbon dioxide emissions that contribute to global warming. Ethanol also helps consumers by increasing domestic fuel supplies and refining capacity.
The overall demand for ethanol is expected to continue to grow. The Energy Independence and Security Act of 2007 requires an increase in the amount of ethanol and other advanced and cellulosic-based biofuels from the demand in 2010 of 12.5 billion gallons per year to 36 billion gallons per year by 2022.
The Future Is Here
Pacific Ethanol is actively exploring cutting-edge cellulosic technology and alternative grain stocks that lower the carbon footprint and increases manufacturing efficiencies. With the implementation of new Low Carbon Fuel Standard regulations, we are poised to meet an increasing demand as the US looks for new, cleaner fuel sources.