Bioenergy

Update on Southridge Ethanol Plant in El Salvador

Southridge Enterprises Inc. has announced that it is ahead of schedule in the completion of its El Salvador-based ethanol production facility. Announced in December 2007, the new plant will have a maximum annual capacity of 20 million-gallons-per-year (MGY). Southridge is also developing ethanol plants in Mississippi, Texas and Brazil.

In addition the company has recently signed several purchase agreements with major local sugar cane growers to supply the feedstock necessary to operate the facility. The company expects to replace the local grower’s supply of sugarcane with the harvest of the company’s proprietary land.

The plant’s first phase will have the capacity to dry up to 15 MGY of hydrous ethanol to be imported into the United States. The second phase will be to build the plant capable of producing 5 MGY of ethanol using sugar cane as feedstock. Bagasse, the fibrous material that remains from sugar cane, will be burned as fuel and cut down our energy costs by 60 percent.

Southridge also announced that it has entered into an ethanol sales agreement with Hong Kong based Jinsung Ho Trading Group (JHTG) for the supply of 20 million gallons of ethanol per year. Deliveries are expected to begin in October 2008. The ethanol is being sourced from Petrozilian Energia SA (PES) from Brazil.