California, United States [RenewableEnergyWorld.com] AE Biofuels Inc., and Pearson Fuels have been awarded a US $6.9 million grant from the U.S. Department of Energy (DOE), through its Clean Cities program. The award calls for the two companies to build and supply 55 public E85 ethanol-fueling stations across California over the next 42 months.
The stations will be located in areas with the highest concentration of flexible-fuel vehicles. DOE estimates that the initiative will help displace approximately 3.5 million gallons of petroleum annually.
Under the terms of the agreement, AE Biofuels will supply Pearson Fuels with cellulosic ethanol and other biofuels for distribution through the E85 filling stations in California. Pearson Fuels will manage the construction and permitting of the new facilities. The Southern California Association of Governments applied for the money through their Clean Cities Coalition.
“California has over 300,000 flexible fuel vehicles already on the road today, but only a handful of E85 pumps at the state’s 9,000 stations. This grant will allow us to bring cellulosic E85 fuel to drivers around the state and meet the demand for carbon reducing fuels,” said Eric McAfee, chairman and CEO of AE Biofuels.
AE Biofuels also announced the company’s wholly-owned subsidiary, Universal Biofuels Pvt. Ltd. has completed a $3 million shipment of biodiesel to a large European customer. The fuel was produced at a 50 million-gallon-per-year biodiesel production facility located in Kakinada, India,
Universal Biofuels completed construction and commissioning of the Kakinada plant in November of 2008, and has been producing and selling biodiesel and glycerin to a variety of customers in India.
