Earth Biofuels, Inc. (OTCBB:EBOF) announced that its subsidiary Earth Ethanol, Inc. has entered into an agreement with Liquafaction Corp. to construct and operate an ethanol production facility near Moses Lake, Washington.
Earth Ethanol will own 80% of the facility, which is projected to produce 36 million gallons of ethanol per year by the end of 2007. The project is a renovation and expansion of an existing ethanol plant built in 1992 with an original capacity of approximately six million gallons per year. The facility will be upgraded with state-of-the-art processes and controls and will be able to process both corn and barley as feedstock for the ethanol production.
Moses Lake is located in Grant County, the largest corn-producing county in the state of Washington, and is adjacent to the largest barley producing counties in the state. The ability to operate on two grains will help to reduce the exposure to rapidly changing corn or barley prices.
Production at the facility is expected to increase incrementally – from an initial 12 million gallons per year in June of 2007 to 36 million gallons per year by November 2007.
About Earth Biofuels
Earth Biofuels produces and distributes biodiesel fuel through the company’s network of wholesale and retail outlets. The fuel is sold under Willie Nelson’s brand name, “BioWillie®.” Earth Biofuels also produces and markets liquefied natural gas (LNG). The Company is focused on meeting the growing demand for alternative and renewable fuels in the domestic market.
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