BioFuels - BioDiesel - - - BOOM or BOONDOGGLE?

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Pacific Ethanol plants seek bankruptcy protection

By Dale Kasler .. dkasler@sacbee.com
"The Sacramento Bee"
Tuesday, May. 19, 2009

Pacific Ethanol Inc.'s dream of a West Coast biofuels empire has landed in bankruptcy court.
The Sacramento ethanol maker said Monday it has put its four production plants under Chapter 11 bankruptcy protection, the result of low fuel prices and the high cost of corn, ethanol's main ingredient.

Pacific Ethanol lined up new financing and promised to keep operating. But its troubles symbolize the sad state of an industry that was a darling among Wall Street financiers and the venture capital crowd not long ago. Bill Gates once invested $84 million in Pacific Ethanol stock.

The long-term outlook for biofuels remains strong, with federal and state governments ramping up requirements for blending ethanol into gasoline. President Barack Obama is expected to announce tight new standards on greenhouse gases today, paving the way for increased biofuel use.
"The future has to be rosy for the industry," said Dan Sperling, a member of the California Air Resources Board and a transportation fuel expert at UC Davis.

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Pacific Ethanol defaulted on about $250 million in debt and warned in March that it was nearly out of cash and might file for bankruptcy. A week ago it reported a $23.9 million first-quarter loss and a 50 percent drop in revenue.

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Pacific Ethanol was part of an ethanol boom that went overboard. Five major plants have been built in California since 2005, including Pacific Ethanol's. All are closed.

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With ethanol selling for about $1.70 a gallon, producers are losing about 30 cents on the gallon, he said.

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MORE … http://www.sacbee.com/topstories/story/187283...

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BIODIESEL Plant in Orange Cove

Is the City of Orange Cove investment to date (bargain price for land, site land improvements, sewer and water hook-ups, curbs and gutters, etc.)
at Risk?

No logical person wants this venture to fail.

The primary source ingredient specified by the developers of this facility, will be used fryer/restaurant oil (vegetable oil). This is a high demand commodity by both commercial and individuals manufacturing biodiesel. Are there enough fast-food and full-service restaurants in the contiguous communities for an adequate supply?

You can be assured that this is a high-demand commodity when it is being stolen from storage containers behind restaurants and shopping centers. Evidently it is more profitable than stealing copper wire.

There are companies that sell a home/farm based kit to manufacture biodiesel from used vegetable oil, for as little as $3,000 to $4,000. These have been in use in California for many years.

Is the Orange Cove investment to date at risk?

What do you think?

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Economic Development 101
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From what I understand the O.C. bio diesel plant produces so few gallons that they have a hard time finding buyers for so few gallons.
This could also be hear say.

the hell with bio fuel

[QUOTE who="Wha

What wrote:

From what I understand the O.C. bio diesel plant produces so few gallons that they have a hard time finding buyers for so few gallons.
This could also be hear say.

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NO it is not "so few gallons", it is ZERO gallons!

To the best of my knowledge, they did not produce any saleable fuel while they had the testing plant operating in the old Packing House building (remember the BIG fire?).

The City of Orange Cove has "invested" tens of thousands of dollars in "site development" on the Munson Ave site (those are TAXPAYER dollar$ from the OC Redevelopment Agency)... the owners of this new plant have invested ZERO Dollar$ in building the new plant.

Drive by (it is just north of Parlier Ave) and take a look for yourself. That plastic dust screen has been in place and not moved since the contractor finished the site development work several months ago.

LOPEZ and SAITO (one of the partners in the bio-fuels plant) are old buddies -- they sit on some Boards of Directors together.

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