Pacific Ethanol is the leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States.
Pacific Ethanol owns and operates seven production facilities, four in the Western states of California, Oregon and Idaho, and three in the Midwestern state of Illinois. The plants have a combined production capacity of 450 million gallons per year, produce over two million tons per year of ethanol co-products - on a dry matter basis - such as wet and dry distillers grains, wet and dry corn gluten feed, condensed distillers solubles (CDS), corn gluten meal, corn germ, corn oil, distillers yeast and CO2.
We are unique in operating ethanol plants in both the West and Midwest. The four Pacific Ethanol plants in the Western United States are located in close proximity to both feed and ethanol customers and thus enjoy unique advantages in efficiency, logistics and product pricing. These plants produce among the lowest carbon ethanol produced in the United States due to low energy use in production. The three Pacific Ethanol plants in the Midwest are located in the heart of the Corn Belt, and benefit from low-cost and abundant feedstock production and ready access to national and international markets.
The integration of Western and Midwestern operations allows Pacific Ethanol the unique ability to capture value along the supply and distribution chains and to take advantage of regional pricing dislocations that are common to the volatile markets in which we operate.
Kinergy Marketing LLC, the marketing and trading subsidiary of Pacific Ethanol, markets all ethanol and alcohol products for Pacific Ethanol's plants as well as third parties, approaching one billion gallons of ethanol annually based on historical volumes. Kinergy provides its customers in the West excellent logistical service, inventory management and reliable supply of ethanol. With the Midwestern plants, Kinergy has direct access to markets in the South and East, and to international markets by way of the Mississippi River system and rail to Gulf and East Coast ports.
Driven By Demand ®
Ethanol is an integral part of the country's transportation fuel market, representing 10% of the overall gasoline supply in the United States and growing. Ethanol has many advantages as a component of our transportation fuels. It is made from domestically produced renewable resources and reduces air pollution and carbon dioxide emissions that contribute to climate change. With its high octane rating, ethanol adds value to gasoline blends. Ethanol also helps consumers by increasing domestic fuel supplies and refining capacity.
The overall demand for ethanol in the United States is expected to continue to grow to 15% of gasoline supply as blenders and consumers demand low carbon, high octane, and low cost transportation fuel. The international demand for ethanol also continues to grow with annual sales into export markets of 1.8 billion gallons per year.
The Future Is Here
Pacific Ethanol produces value added products at its facilities with the production of cellulosic ethanol, high value alcohol for industrial, hand sanitizer, and beverage markets, and high protein feeds. The Low Carbon Fuel Standard markets create incentives for investment in new clean production technologies like the 5MW solar facility at the Pacific Ethanol Madera plant and production of cellulosic ethanol from corn kernel fiber. Looking forward, Pacific Ethanol expects to expand production of high value alcohol, lower carbon intensity of ethanol, and increase the production of high protein feed products.