Business & Real Estate

Pacific Ethanol starts corn oil production at Madera plant

Sacramento’s Pacfiic Ethanol Inc., a producer of low-carbon renewable fuels, said Thursday it has begun commercial production of corn oil at its Madera plant.

In a statement, PEI president and CEO Neil Koehler said the move “further diversifies our plant revenue streams and significantly improves operating income.”

Koehler added that PEI plans to begin producing corn oil at its plant in Boardman, Ore., in this year’s second quarter. Once the Oregon facility begins production, PEI will be processing corn oil at all four of its ethanol-production facilities, including those in Stockton and Burley, Idaho.

In the renewable fuels industry, corn oil can be used to produce biodiesel. It also is used in cooking fluids, animal feed, soap, paint, inks, textiles, drugs and insecticides.

Pacific Ethanol announced its intention to enter the corn oil market in 2012, a move partly designed as a hedge against supply and production uncertainties in the ethanol industry.

Call The Bee’s Mark Glover, (916) 321-1184.