Pacific Ethanol is the leading producer and marketer of low-carbon renewable fuels in the Western United States. With the addition of four Midwestern ethanol plants in July 2015, we have expanded our operations and sales footprint, more than doubling our scale, entering new markets, and expanding our mission to become the industry leader in the production and marketing of low carbon renewable fuels.
Pacific Ethanol owns eight ethanol production facilities, four in the Western states of California, Oregon and Idaho, and four in the Midwestern states of Illinois and Nebraska. The plants have a combined production capacity of 515 million gallons per year, produce over 1 million tons per year of ethanol co-products such as wet and dry distiller grains, wet and dry corn gluten feed, condensed distillers solubles (CDS), corn gluten meal, corn germ, corn oil, distillers yeast and CO2.
We are unique in operating ethanol plants in both the West and Midwest. The four Pacific Ethanol plants in the Western United States are located in close proximity to both feed and ethanol customers and thus enjoy unique advantages in efficiency, logistics and product pricing. These plants produce among the lowest carbon ethanol produced in the United States due to low energy use in production. The four Pacific Ethanol plants in the Midwest are located in the heart of the Corn Belt, and benefit from low-cost and abundant feedstock production and ready access to national and international markets.
The integration of Western and Midwestern operations allows Pacific Ethanol the unique ability to capture value along the supply and distribution chains and to take advantage of regional pricing dislocations that are common to the volatile markets in which we operate.
Kinergy Marketing LLC, the marketing and trading subsidiary of Pacific Ethanol, sells all ethanol for the Pacific Ethanol plants as well as third parties and today sells over 800 million gallons of ethanol annually. Kinergy provides its customers in the West excellent logistical service, inventory management and reliable supply of ethanol and biodiesel. With the Midwestern plants, Kinergy has direct access to markets in the South and East, and to international markets by way of the Mississippi River system and rail to Gulf and East Coast ports.
Driven By Demand ®
Ethanol is an integral part of the country's transportation fuel market, currently representing nearly 10% of the overall gasoline supply in the United States. Ethanol has many 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. With its high octane rating, ethanol adds value to gasoline blends. Ethanol also helps consumers by increasing domestic fuel supplies and refining capacity.
The overall demand for ethanol is expected to continue to grow. The US is on a path to increase the amount of renewable biofuels fuels to 36 billion gallons per year by 2022. As of 2014, national blend rates were at 10% and growing. In addition, international demand for ethanol continues to grow. As of 2014, the US ethanol industry was exporting over 850 million gallons of ethanol per year.
The Future Is Here
Pacific Ethanol is actively exploring cutting-edge cellulosic technology and alternative grain stocks that lower the carbon footprint and increase manufacturing efficiencies. With the implementation of Low Carbon Fuel Standard regulations, we are poised to meet the increasing demand as the US looks for new, cleaner fuel sources.