Archives

Visitor Counter

322597
Visit Today : 68
Visit Yesterday : 165
This Month : 1610
This Year : 9900
Total Visit : 322597
Hits Today : 80
Total Hits : 1071613
Who's Online : 5
Your IP Address: 54.242.191.214
Server Time: 24-03-29

Pacific Ethanol CEO responds to EPA proposed rules for 2014 RFS targets ; Stock Rises

Pacific Ethanol idled plant in Madera

Pacific Ethanol idled plant in Madera

Sacramento: Pacific Ethanol issued the following statement from Neil Koehler, CEO, in response to the EPA recently proposed reductions to the 2014 Renewable Fuel Standard , or RFS, targets:After the release the company stock – under pressure in recent weeks – was up 7%.

“The RFS is the single most effective energy policy this country has ever had to reduce our dependence on foreign oil, develop renewable fuels as a meaningful alternative to fossil fuels, and reduce carbon emissions from transportation while boosting the economy and lowering the cost of gasoline to consumers. Importantly, the policy is spurring innovation in new advanced biofuels as substitutes for both gasoline and diesel. The renewable fuels industry, with its existing infrastructure, stands ready to deliver the levels of renewable fuels in 2014 set by the RFS. The EPA proposes to use what we view as questionable regulatory discretion to lower the 2014 renewable fuels targets. We believe that the EPA’s proposed ruling is incompatible with the already achievable objectives of the RFS and will squander the opportunity to optimize the environmental, energy and economic benefits of this valuable policy. The market for renewable fuels is ready for continued growth. 70% of the vehicles on the road today have been approved by the EPA for the use of up to fifteen percent ethanol blends. Additionally, over 15M E85 vehicles are on the road today with over 3,000 fueling stations offering E85 across the country. We and other stakeholders will emphasize these points to the EPA during the comment period. We hope the final rule will be revised to better reflect the intentions and the promise of the RFS. The ethanol industry remains on strong footing. A record corn harvest and lower corn prices support the economics of ethanol production and blending. Ethanol is the lowest cost transportation fuel in the world. Domestic demand is strong and exports have increased significantly in recent weeks. Ethanol production margins are currently at their highest levels for all of 2013.

We believe, regardless of the final EPA ruling, that the demand for ethanol will remain strong in 2014 as the compelling economics of ethanol blending will support a tight supply and demand balance, sustaining strong industry margins. Pacific Ethanol has made significant strides this year: we strengthened our balance sheet; reduced and extended all maturing debt and retired all but $250K of our convertible debt financing; we increased our ownership position in our production facilities, which enabled us to benefit from what are currently the year’s best production margins and produce positive operating margins for the past two quarters; we introduced alternative, lower-cost feedstocks such as beet sugar and sorghum, and created additional revenue streams through corn oil production; and the LCFS is supporting technology innovation in our plants, further advancing our competitive position. We remain very optimistic about the company’s future.”

Leave a Reply

Your email address will not be published. Required fields are marked *