Pacific Ethanol starts initial construction in Oregon

July 1, 2006

Pacific Ethanol Inc. has started initial dirt work on a 35 MMgy ethanol plant at the Port of Morrow near Boardman, Ore., on the Columbia River. However, a design/builder had not yet been named at press time, according to Plant Manager Joe Winckler.

The company obtained all necessary permits to begin construction, according to a press release. Completing the project is expected to take a year. "This milestone is the latest in our plan to construct five ethanol production facilities to serve the western United States by the end of 2008," said Neil Koehler, Pacific Ethanol's chief executive officer, in a prepared statement.

A 35 MMgy Pacific Ethanol facility is currently under construction in Madera, Calif. That plant is expected to begin production in November 2006.

Pacific Ethanol has been discussing the project with the Port of Morrow for about a year, according to Lisa Mittelsdorf, director of economic developments for the port. The more-than-5,000-acre site is home to many industrial and agricultural businesses, such as food processing, lumber, transportation, and fiber and seed processing facilities. "This project fits in really well to continue to diversify the agricultural community here," Mittelsdorf said of Pacific Ethanol.

The port's industrial center has access to such transportation needs as Columbia River barges, Union Pacific railway service and Interstate 84. "We're at a great location for multi-modal transportation activity," Mittelsdorf said.

Ethanol produced at the Pacific Ethanol facility will be marketed in the Northwest. The distillers grains produced will likely be sold to dairy and feed markets in Oregon and Washington.

Pacific Ethanol, headquartered in Fresno, Calif., works in developing, producing and marketing renewable fuels in the western United States. Kinergy Marketing LLC, a wholly owned subsidiary of Pacific Ethanol, is the largest ethanol marketer based on the West Coast.

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