In the midst of a slowing ethanol market, Pacific Ethanol, Inc. (Nasdaq GM: PEIX) today announced that it has suspended construction of its Imperial Valley project near Calipatria, California until market conditions improve.
Neil Koehler CEO of Pacific Ethanol said, "We remain committed to completing our ethanol project in Imperial Valley. However, given current ethanol market conditions, we feel it is prudent and strategic to suspend construction until the market improves."
He added, "Our Stockton and Magic Valley plants remain under construction, and in addition to our existing production capacity, we remain on target to attain our production capacity goal of 220 million gallons in 2008."
About Pacific Ethanol, Inc.
Pacific Ethanol has ethanol plants in Madera, California, and in Boardman, Oregon, and has two additional plants under construction in Burley, Idaho, and in Stockton, California. Pacific Ethanol also owns a 42% interest in Front Range Energy, LLC which owns an ethanol plant in Windsor, Colorado. Central to Pacific Ethanol’s growth strategy is its destination business model, whereby each respective ethanol plant achieves lower process and transportation costs by servicing local markets for both fuel and feed. Pacific Ethanol’s goal is to achieve 220 million gallons per year of ethanol production capacity in 2008 and to increase total production capacity to 420 million gallons per year in 2010. In addition, Pacific Ethanol is working to identify and develop other renewable fuel technologies, such as cellulose-based ethanol production and bio-diesel.
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