AMERICAN ETHANOL FACTS

Why Ethanol production near Santa Maria?

  • Mandated and desired replacement for MTBE.
  • California demand is expected to grow from about 1 billion gallons per year to 2-3 BNGY. Only about 80 million were produced in 2007 with the rest imported, sending dollars out of state and country.
  • Cheaper to ship corn from Midwest than ethanol and the cattle feed made from it to the California markets, the world’s largest for ethanol and cattle feed (except for the entire USA).
  • About 19% of the US corn crop is used for ethanol.
  • About 50% is used for US cattle feed.
  • About 10% is used as direct human food.
  • The rest is exported.
  • Santa Barbara County at all levels, supports renewable fuels and the Santa Maria project. Ethanol is here and now and already in your gas tanks (up to 10% of your gasoline currently is ethanol)
  • AE is located close to LA and Bay Area markets by rail and truck.
  • Old Sugar Beet industry infrastructure is available.
  • Ethanol has a California Premium of about $.20 per gallon.
  • California can technically produce the all the corn and other grains needed.
  • Moderate weather boosts our plant production and shortens construction times.
  • Our site has surplus water, thus avoiding the “water wars” afflicting some other locations. AE will be using very clean, SB county waste water.
  • Oil and Gas transferable skills are available in the area.
  • California and the Central Coast have a good CO2 market.
  • California is serious about moving from laggard to leader in renewable fuels.

“From Idea to Profitable Operating Plant”:

  • More than $1.5 billion in ethanol pre-sold to Noble Americas, the CBOT market maker for ethanol.
  • DG sales in negotiation.
  • Excellent site with rail, power, surplus water and natural gas.
  • Financing for up to 65% of plant cost offered by major international banks.
  • Corn contracts with Noble offers to invest $1 million plus advance a credit line of up to $7 million for working capital.
  • Four excellent partner teams:
    • Praj…….The world’s largest ethanol technology provider with more than 350 plants in operation, more than 3X the total US number. Praj has three California plants under contract.
    • CJ Schneider,….. more than 20 plants engineered.
    • OLA………..International civil and project engineers also under contract with Shell for the world’s largest wind farm, working to expand Humbolt Bay, built the last LA power plant, contracted with Cal Trans, Port of Oakland and others.
    • MSW, advisors, built the first Californian ethanol plant for 30% less than the industry average.
  • More than $3 million capital has been raised for the project.