Texas, United States [RenewableEnergyWorld.com] Gulf Ethanol Corporation has announced that as a result of rising corn costs the profit margin of the company’s traditional ethanol plants is dropping and that it will begin retrofitting the unprofitable plants to produce fuel using cellulose feedstocks in 2008.
“The failure of corn-based ethanol stocks spotlights the contrast between Gulf Ethanol and it competitors. With corn at $5.64 per bushel, we can get cellulose at $45 per ton,” said JT Cloud, Gulf’s president. “Our feedstock costs will be about $0.45 per gallon while existing producers’ feedstock costs are near $2.00 per gallon. That revolutionizes the economics of ethanol and makes Gulf ethanol a great contrarian play to corn based ethanol stock.”
Officials from Gulf Ethanol will also meet this month with several Central American ethanol producers to negotiate the conversion of existing plants in that region to be compatible with cellulosic feedstocks. Gulf will provide the technology, engineering and installation of cellulosic technology to the plant owners and will share in the profits of each plant.
“The economics of cellulosic ethanol production are compelling,” Cloud said. “As smaller nations seeking energy independence have abundant biomass that can be used to produce cellulosic ethanol. Cellulosic ethanol will reduce fuel costs, support environmental concerns, and reduce energy dependence.”