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Gulf Ethanol Corporation Welcomes New Energy Bill

Posted on: Tuesday, 25 September 2007, 12:00 CDT

Gulf Ethanol Corporation (OTC:GFET) CEO JT Cloud asserted today that the New Energy Bill mulled over in Congress will dramatically increase the US Based ethanol market over the next few years, giving a boom to blenders and producers.

Provisions in the bill would increase a federal income tax credit from 30 to 50 percent of the installation costs for retailers to install E85 pumps and make it harder for oil companies to keep E85 pumps out of company branded stations if a station's owner chose to invest in them.

"Critics of corn based ethanol maybe well founded, however non-food stock production such as sweet sorghum is a viable alternative and readily available," JT Cloud said. "The real problem is not how ethanol is being produced, it's how it will make it to the pumps and into someone's car."

Phil Lampert, Executive Director of the National Ethanol Vehicle Coalition said the costs of modifying existing gas stations to offer E85 are coming down, more consumers are becoming educated about it, and proposed energy bills could give the industry a boost.

VeraSun Corp. (NYSE:VSE), one of the largest independent producers of ethanol, has been vocal about the need to expand infrastructure. According to CEO Don Endres, Atlanta alone offers a potential market for about 250 million gallons a year, while California could accept about 650 million gallons.

Greg King, president of Valero Energy Corp. (NYSE:VLO), questions the compatibility of policies that increase the production of petroleum-based gasoline and mandating subsidized biofuels. "If you want to add refining capacity here, how can you have the president advocating reduced consumption?" said Greg King.

However, a significant portion of the infrastructure necessary to make ethanol-blended gasoline now belongs not to refiners but to transport and terminal companies such as Kinder Morgan Energy (NYSE:KMP), Colonial Pipeline Co., NuStar Energy LP (NYSE:NS) and Magellan Midstream Partners LP (NYSE:MMP), that move and store gasoline components.

About Gulf Ethanol Corporation

Gulf Ethanol Corporation, (OTC:GFET), is developing ethanol production strategies along the Gulf Coast committed to using non-food feed stocks for the production of ethanol rather than corn or sugar cane, which have now been shown to be expensive fuel sources that negatively impact food prices. For more information please visit our homepage at: http://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.

Source: Business Wire

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