Grain News

Gulf Ethanol Corp Formalizes Cellulosic Ethanol Initiative

Date Posted: November 16, 2007

Houston, TX--Gulf Ethanol Corporation,(OTC:GFET). Gulf Ethanol announced Nov. 15 the formalization of its cellulose based ethanol initiative.

Cellulose ethanol is a renewable, advanced biofuel that can be used in today’s cars.

The primary difference between the two types of ethanol products is that conventional fuel ethanol is derived from grains such as corn and wheat.

Cellulose ethanol is made from the non-food portion of renewable feedstocks such as sorghum, switchgrass and corn stover.

All automotive manufacturers warrant the use of 10% ethanol blends (E10).

These same manufacturers warrant (E5), 5%, blends in Europe. Ethanol blends are sold at retail outlets across Canada, the United States and Europe.

As well, Ford, DaimlerChrysler, General Motors, Mazda and many more vehicle manufacturers, sell cars, trucks and minivans that are flexible fuel vehicles designed to use ethanol in up to 85% (E85) blends.

“Dependence on fossil fuels and corn based ethanol create economic pressures that can be relieved by the use of non-food feedstocks to generate large quantities of renewable fuels,” noted CEO JT Cloud.

“With 60% of America’s oil being imported, it is critical for America to develop efficient, renewable fuel sources.

"Renewable fuels, such as cellulose ethanol represent a low-cost domestic source of energy that generates both environmental and economic benefits to the U.S. economy,” he added.

Gulf Ethanol is aggressively developing its cellulose-based production strategy and expects to become a leader in the alternative fuels industry along side of companies such as ethanol producer MGP Ingredients (MGPI).

Meanwhile, auto companies like Ford (F) and General Motors (GM) are ramping up promotion of flex vehicles that run on E85 -- hoping they will catch on like hybrids that combine the use of electrical power and gasoline.

For more information, call William Carmichael at 713-461-9229.

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