Yesterday, AE Biofuels, Inc. announced that their wholly-owned advanced ethanol subsidiary AE Advanced Fuels Keyes, Inc. (AE Keyes) closed a $3.5 million financing with Third Eye Capital Corporation. They will use the funds to restart and operate a 55 million gallon per year ethanol plant located in Keyes, California. In November 2010, AE Keyes received $4.5 million from Third Eye Capital to complete the repair and retrofit of the Keyes facility.
AE Keyes expects to restart the Keyes plant and be fully operational by late April 2011. They took possession of the facility under a project agreement with Cilion, Inc. in 2010. The revised project agreement extends the original lease from three to five years. The agreement includes an early termination right at three years.
The Keyes plant is a leader in environmentally responsible ethanol production. The plant has a 2.6:1 positive energy balance and near zero water discharge. Furthermore, the plant’s natural gas and steam powered turbine cogeneration unit generates almost all of the operating electric needs of the plant (4.3 megawatts). Therefore, this eliminates dependence on the state’s electrical grid.
AE Advanced Fuels Keyes also announced that they signed a grain supply and services contract with J.D. Heiskell & Co. AE Keyes will market their wet distillers grains (WDG) via an agreement with A.L. Gilbert. The Company previously announced their ethanol marketing agreement with Kinergy Marketing LLC.
AE Biofuels, Inc. intends to introduce their patent-pending enzyme-based cellulosic ethanol technology at the Keyes facility and other California ethanol plants in 2011.
Headquartered in Cupertino, California, AE Biofuels, Inc. is a global vertically integrated biofuels company developing sustainable solutions to address the world’s renewable energy needs. The Company is working to commercialize their patent-pending next-generation cellulosic ethanol technology. This technology enables the production of biofuels from both non-food and traditional feedstocks. The Company’s wholly-owned Universal Biofuels subsidiary built and operates a nameplate 50 million gallon per year biodiesel production facility on the east coast of India.
For more information visit: www.aebiofuels.com