Gulf Ethanol Initiates Negotiations for Plant Site
Posted on: Thursday, 21 June 2007, 12:00 CDT
Gulf Ethanol Corp. (OTC:GFET), a Houston-based bio-fuels company announced today that it is initiating negotiations to acquire a plant site in East Texas. Based on its program of developing ethanol production along the Gulf Coast using non-food fuel sources, such as sorghum instead of corn, the Company is seeking a site in the Golden Triangle area of Texas. The Company feels that this region has ideal characteristics including available agricultural acreage, adequate water supplies and access to transportation and refining.
Prices for fuel stocks used to produce bio-fuels, such as corn and soybeans, have risen sharply due to alternative energy initiatives in the U.S. This has produced a negative ripple effect on food and feed costs. Gulf Ethanol, believes the better long-term strategy is to develop ethanol using renewable non-food feedstocks which can be raised along the gulf coast.
In the Midwest, ethanol production has increased the demand for corn from companies like Archer Daniels-Midland (NYSE: ADM), Aventine Renewable Energy (NYSE: AVR) and Pacific Ethanol, Inc. (NASDAQ: PEIX). As a result, corn prices have nearly doubled which will reduce margins for companies using these feedstocks.
"Gulf Ethanol is dedicated to developing Gulf Coast ethanol production based on fuel stocks that can be acquired at predictable prices. We expect to avoid the pricing pressures experienced by plants in the mid-west who must depend on corn and other food stocks for fuel," stated Gulf's President JT Cloud.
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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