Ethanex Energy Inc, a renewable energy company said on Wednesday it has formed an alliance with the Industrial Investment Council, an investment agency funded by the German government. The IIC will work with the energy company to establish bio-ethanol facilities in Germany.
Following U.S. lawmakersâ€™ approval of the Renewable Fuels Act of 2005, which set the standard of producing 8 billion gallons of renewable fuels by 2012, the European Union released similar legislation. The IIC will work together with Ethanex to selec t potential sites in Germany to set up ethanol production plants, develop further strategic partnerships and determine project economics. Ethanol is typically produced from the starch contained in grains such as corn. It can also be produced from cellulose.
â€œTo meet the new bio-ethanol requirements for direct blending European capacity has to more than triple by 2010. These growth dynamics provide Ethanex the opportunity to quickly establish itself as a global leader in the production of ethanol,â€ said Al Knapp, President and Chief Executive Officer of Ethanex.
The IIC is funded by the Federal Government of Germany, five eastern German States and Berlin whose board includes the former CEO of Siemens Corporation, President of General Motors Europe, and Director of BASF.