Gulf Ethanol Corporation, (OTC:GFET) today answered investor questions about its new cellulose feed-stock processing technology.
The process, developed by Meridian Biorefining, converts non-food biomass into a very fine powdered cellulose that a university study confirms produces far better results when processed into ethanol. Gulf ethanol owns the exclusive rights to this breakthrough technology for the processing of ethanol feed-stocks and will partner with Meridian Biorefining for engineering, design and implementation of the technology.
Why Cellulose? Cellulose is the most abundant plant material on earth. Ethanol has emerged as a significant source of alternative transportation fuel worldwide as oil prices continue to rise over the long term. Studies now show that abundant cellulose feed stocks can replace as much as 30 percent of America’s petroleum consumption. Corn and sugar cane prices have risen significantly as they are used increasingly to produce ethanol. Cellulose is more difficult to convert into ethanol but is far cheaper and more abundant as a feed-stock. Gasoline is currently mixed with ten percent ethanol by most oil companies today, including Exxon Mobil Corp. (NYSE:XOM) and Shell (NYSE:RDS-A).
Describe Gulf’s Technology. Cellulose must be broken down and converted into sugar which is then transformed chemically into ethanol. Gulf’s exclusive license with Meridian Biorefining gives it the right to a technology that converts cellulose feed stocks, such as switchgrass, sorghum, wood chips, and bagasse into an extremely fine cellulose powder. Initial scientific analysis indicates that Gulf’s pre-processing increased the amount of ethanol recovered from the feed stock and significantly reduces the time needed to process cellulose into ethanol. Gulf’s process uses very low energy input.
Significance to the Industry. The ethanol industry has recently suffered from increased food-based feed stock prices. The industry has been seeking an effective technology for cellulose processing. The Company believes that this new technology is an important component of turning cheap cellulose feed stocks into mainstream transportation fuels. Ethanol demand is expected to rise. Companies using cheap cellulose feed stocks are expected to be the most profitable. Billions of dollars have been invested in existing ethanol infrastructure. Profits are currently dampened by high corn prices. Gulf believes that existing plants can significantly increase profits by converting to cheaper cellulose feed stocks. The development of alternative transportation fuels has proven difficult. Companies such as Archer Daniels Midland (NYSE:ADM) and Bunge Limited (NYSE:BG) are working on the technological problems of producing ethanol. Food based feed stocks rise in price as production increases which means that the more ethanol made from food-stocks, the less efficient it becomes.
“Everyone knows that cellulose is the future of ethanol,” explained JT Cloud, Gulf’s President. “That future has arrived,” he noted. “As we deploy this exciting new process in the ethanol industry, we expect our profits to be very attractive to investors,” he concluded.
What is Gulf’s Implementation Plan? In December the first commercial processing unit, which has now been completed, will be moved to its permanent location for final testing. Gulf and Meridian will then process multiple feed-stocks using this new technology. The cellulose will then be scientifically tested to verify its efficiency. Gulf expects to enter into agreements in 2008 to retrofit existing corn-based ethanol plants to cellulose to increase their economic efficiency. “We believe our technology will change the economics of the industry and alter the ethanol equation forever,” noted Mr. Cloud.
About Gulf Ethanol Corporation
Gulf Ethanol, (OTC:GFET) is an alternative energy company focused on the development of cellulosic ethanol technologies with a particular emphasis on Texas and the Gulf Coast. For more information please visit our homepage at: www.GulfEthanolCorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
Contacts:
William Carmichael, 713-461-9229
Fax:
713-461-9230
ir@gulfethanolcorp.com
