Sacramento-based Pacific Ethanol Inc., a producer and marketer of low-carbon renewable fuels, has begun commercial production of corn oil at its Magic Valley plant in Burley, Idaho.
PEI announced in June last year that it planned to get into the corn oil business, installing appropriate technology at its facilities.
In the renewable fuels industry, corn oil can be used to produce biodiesel. It also is used in numerous other products, depending on the separation and production process. Corn oil is used in cooking fluids, animal feed, soap, paint, inks, textiles, drugs and insecticides.
"Corn oil sales at our Magic Valley plant diversifies our revenue streams, providing greater financial stability to the plant, and is expected to contribute as much as $4.5 million or seven cents per gallon of operating income annually," said Neil Koehler, PEI's president and CEO.
Meanwhile, PEI announced today that it is again in compliance with requirements to be listed on the Nasdaq stock market.
PEI recently initiated a reverse stock split plan designed to boost the per-share price. Nasdaq required that the company's common stock have a closing bid price of $1 or more for a minimum of 10 consecutive trading days.
PEI shares have been trading this week at more than $4.50 a share.
Call The Bee's Mark Glover, (916) 321-1184.