Grainnet

LiquidMaize Delays Construction on Lamar, CO Ethanol Plant Due to High Corn Prices and Food vs. Fuel Politics

Denver, CO—Denver-based LiquidMaize provides the following update on the status of its plans to build an ethanol production plant in Lamar, CO:

Construction Schedule

Recent developments in the U.S. ethanol industry and related unfavorable economics have forced LiquidMaize to delay its construction schedule until financial conditions have improved.

The increasingly politicized debate between food vs. fuel, coupled with unprecedented high corn prices have caused Wall Street and other investors to move more cautiously with investments in the ethanol industry.

Equipment On Site

ICM Inc. will remove its equipment from the plant site near the Four States Feeders feedyard to prevent deterioration.

It is LiquidMaize’s intention to re-engage ICM for replacement of fully-warranted equipment as soon as LiquidMaize is in position to begin construction.

Industry Perception

The LiquidMaize short-haul business model, which produces ethanol and wet distiller’s grain for delivery to local gasoline terminals and neighboring feed yards, remains extremely attractive to investors who are currently struggling with multiple challenges facing the ethanol industry.

Permits

All permits relating to the project remain valid, and LiquidMaize continues to pursue completion of permits pertaining to water issues.

An analysis of the wastewater effluent stream by the Colorado Department of Public Health and Environment is imminent, with plans for the effluent to support the growth of alternative feed stocks in the Lamar area.

Alternative Feedstocks

LiquidMaize, in partnership with Colorado State University and the Colorado Agriculture Commission, is examining the utilization of sorghum, millet, and alfalfa hay as part of its local feedstock initiative.

Community Events

LiquidMaize successfully sponsored and supported the Junior Rodeo in Lamar and will do the same for the Sand & Sage Roundup next month, with personal appearances by Paul Orentas, principal of LiquidMaize.

For more information, call 303-410-4971.