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Gulf Ethanol to Negotiate Cellulosic Retrofit of Ethanol Plants in Central America

Posted on: Tuesday, 11 March 2008, 09:01 CDT

Gulf Ethanol Corporation (OTC:GFET) will meet this month with several Central American ethanol producers to negotiate the conversion of existing plants to cellulosic feedstocks. Demand for cellulosic ethanol is high in these countries. Gulf will provide the technology, engineering and installation of cellulosic technology to the plant owners and will share in the profits of each plant.

"The economics of cellulosic ethanol production are compelling," noted JT Cloud, Gulf's President. "As smaller nations seeking energy independence have abundant biomass that can be used to produce cellulosic ethanol. Cellulosic ethanol will reduce fuel costs, support environmental concerns, and reduce energy dependence," he concluded.

These ethanol plants were originally built to produce ethanol from food based feestocks such as corn and sugar cane. As a result, the price of feedstocks and of food have gone up, placing stress on the plants profitability. Companies such as Archer Daniels Midland [NYSE: ADM] and Bunge Limited [NYSE: BG] have led in the development of traditional feed-stocks. Chevron Corp. [NYSE: CVX] recently announced a joint venture with Weyerhaeuser Co. [NYSE: WY] to develop cellulosic feedstocks from wood products. "The industry has taken a sharp turn toward cellulosic feedstocks for ethanol," stated Mr. Cloud. "We expect to be a leader in this sector," he added.

About Gulf Ethanol Corporation

Gulf Ethanol is an alternative energy company focused on the development of the cellulosic ethanol industry 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.

Source: Business Wire

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