Pacific Ethanol and Edeniq entered into a technology licensing and purchase agreement

Neil Koehler, president and CEO Ethanol Pacific, at the company's plant in Stockton
Neil Koehler, president and CEO Pacific Ethanol, at the company’s plant in Stockton (USA)

Pacific Ethanol, Inc. a leading producer and marketer of low-carbon renewable fuels in the United States, and Edeniq, Inc., a biorefining and cellulosic technology company, entered into a technology licensing and purchase agreement to enable the production of cellulosic ethanol at Pacific Ethanol’s Madera, California, plant using Edeniq’s Pathway and Cellunator™ Technologies.

The Madera plant has a total annual production capacity of 40 million gallons, and is expected to produce up to one million gallons per year of cellulosic ethanol with Edeniq’s Pathway process. Installation is expected to be completed in the third quarter of 2017.

“Consistent with our strategy to improve yields and increase production of advanced biofuels at our plants – Neil Koehler, Pacific Ethanol’s president and CEO, stated – we are expanding cellulosic ethanol production to our Madera facility. We began producing cellulosic ethanol using Edeniq’s technology at our Stockton plant in December 2015, and the resulting bottom line contribution is significant. Once commercial scale production is reached at Madera, we expect the technology will increase earnings by over $2 million annually. We will be working with the EPA to qualify this production for generating D3 cellulosic RINs, which provide an important premium, and we expect the approval to be received near or shortly after we begin commercial operations. We are also working with the California Air Resources Board to qualify our cellulosic production at both our Stockton and Madera facilities for additional carbon credit under the California Low Carbon Fuel Standard.”

“We are pleased to expand our relationship with Pacific Ethanol and provide our Pathway and Cellunator Technologies to its second ethanol plant”, Brian Thome, president and CEO of Edeniq, stated. “The low-cost profile of our technologies offers ethanol producers an attractive option for enhancing ethanol and corn oil yields and producing high-value cellulosic ethanol using existing fermentation and distillation equipment. We are excited to have over 2 billion gallons of ethanol capacity either already under license or committed to commercial trials for our Pathway Technology, with additional plants being added each month.”

Edeniq’s Pathway Technology is a low-cost solution for producing and measuring cellulosic ethanol from corn kernel fiber utilizing existing fermenters at corn ethanol plants. The Cellunator high-shear milling equipment is a leading yield-enhancement technology that offers the most significant and consistent increase in ethanol yield and corn oil recovery, and produces cellulosic ethanol when integrated with Edeniq’s Pathway Technology. The technology features a proprietary technical validation process, quantifies the amount of cellulosic ethanol produced and complies with the registration, recordkeeping, and reporting required by the EPA (Environmental Protection Agency) to generate cellulosic D3 Renewable Identification Numbers (RINs) as defined by the Renewable Fuel Standard. Edeniq was founded in 2008 and is headquartered in Visalia, California, with a field office in Omaha, Nebraska.



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