Fed approval paves way for low-cost cellulosic ethanol production

In a first-of-its-kind ruling, the U.S. Environmental Protection Agency (EPA) has approved Pacific Ethanol’s registration of its Stockton ethanol plant to generate valuable credits by producing cellulosic ethanol with the same equipment the company uses to produce corn-based ethanol. The EPA approval now allows Pacific Ethanol to generate so-called “D3 RINs” (Renewable Identification Numbers) using proprietary technology from one of its partners, Visalia-based Edeniq. “This approval is a landmark for the ethanol industry and our company,” said Brian Thome, president and CEO of Edeniq, which is privately held and focuses on developing biorefining technology for cellulosic ethanol. “This [approval] opens the door for low-cost production of cellulosic ethanol from corn kernel fiber in existing fermentation vessels,” Thome added. “While we have long heard that cellulosic ethanol will be here in five to ten years, Edeniq’s Pathway Technology for profitably producing cellulosic ethanol is here today,” Thome said. “A 120 million-gallon-per-year corn ethanol plant can increase its revenue by up to $10 million or more through integration of Pathway, with very little investment and a less than one-year payback,” Thome added.