Grainnet

Gulf Ethanol Corp. and DM Energy Consultants to Develop Alternative Energy Projects

Houston, TX--Gulf Ethanol Corporation (OTC:GFET) announced the engagement of DM Energy Consultants to develop viable alternative energy projects and valuating potential takeover candidates.

“A recent energy bill mulled over in Washington D.C. has the potential to drastically increase the U.S. based ethanol market over the next few years, giving a boom to blenders and producers,” JT Cloud, CEO of Gulf Ethanol explained.

“We see projects every week not living up to the inherit potential, we plan on capitalizing on that potential.”

Provisions in the bill would increase a federal income tax credit from 30 to 50 percent of the installation costs for retailers to install E85 pumps and make it harder for oil companies to keep E85 pumps out of company branded stations if a station’s owner chose to invest in them.

DM Energy’s President, David Mordekhay characterized the alternative energy marketplace as the perfect convergence of technology and opportunity that may produce historical growth potential over the next few years.

“Thousands of alternative solutions will not be delivered to market without the commitment to renewable energy from companies like Gulf Ethanol,” Mr. Mordekhay said.

DM Energy is an alternative energy-consulting group with experience in international trade and negotiations.

Phil Lampert, Executive Director of the National Ethanol Vehicle Coalition said the costs of modifying existing gas stations to offer E85 are coming down, more consumers are becoming educated about it and proposed energy bills could give the industry a boost.

David Mordekhay continued, “Recent statements made by our president George Bush and pending legislation in Washington D.C. sends a clear message to our nation, ‘Renewable Energy is not a fashion statement’, but the stem face of a brighter future.”

VeraSun Corp. (VSE), the largest independent producer of ethanol, has been vocal about the need to expand infrastructure. Greg King, president of Valero Energy Corp. (VLO), questions the compatibility of policies that increase the production of petroleum-based gasoline and mandating subsidized biofuels.

However, a significant portion of the infrastructure necessary to make ethanol blended gasoline now belongs not to refiners, but to transport and terminal companies such as Kinder Morgan Energy (KMP), Colonial Pipeline Co., NuStar Energy LP (NS) and Magellan Midstream Partners LP (MMP), that move and store gasoline components.

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