Pacific Ethanol Inc (NASDAQ:PEIX), a leading producer and marketer of low-carbon renewable fuels in the United States, announced the U.S. Environmental Protection Agency (EPA) has approved its registration for generating cellulosic ethanol and D3 cellulosic renewable identification numbers (RINs) at its Stockton, CA plant from corn fiber using Edeniq, Inc.’s Pathway Technology™. This is the first ever EPA registration incorporating this process.
Neil Koehler, the company’s president and CEO, stated: “The EPA-approved registration for generating cellulosic ethanol and D3 RINs is an important milestone in our strategy to be a leading producer of cellulosic ethanol. This further underscores our continued commitment to improving production yields, and diversifying our technology and feedstocks. We expect to produce over one million gallons per year of cellulosic ethanol at our Stockton facility. With the high-value D3 RINs, the carbon credit under California’s Low Carbon Fuel Standard, and the federal Second Generation Biofuel Producer tax credit, we expect that cellulosic ethanol production will materially contribute to the profitability of our Stockton facility. As we confirm and optimize our cellulosic ethanol production process, we will look toward expanding this to other Pacific Ethanol plants.”
Pacific Ethanol began producing cellulosic ethanol at its 60-million-gallon capacity per year Stockton, CA plant in December 2015 using the Edeniq, Inc. Pathway Technology™, which integrates Edeniq’s Cellunator™ high shear equipment with cellulase enzymes to convert corn kernel fiber to fermentable sugars. The process enables producers to quantify the amount of cellulosic ethanol produced within their plants and comply with the registration, recordkeeping and reporting required by the EPA to generate cellulosic D3 RINs as defined by the federal Renewable Fuel Standard.
Brian Thome, Edeniq’s president and CEO, stated: “This approval is a landmark for the ethanol industry and for Edeniq as it opens the door for low-cost production of cellulosic ethanol from corn kernel fiber in existing fermentation vessels.” (Original Source)
Shares of Pacific Ethanol closed last Friday at $6.45, down $0.25 or -3.73%. PEIX has a 1-year high of $7.64 and a 1-year low of $2.41. The stock’s 50-day moving average is $6.64 and its 200-day moving average is $5.42.
On the ratings front, Pacific Ethanol has been the subject of a number of recent research reports. In a report issued on July 29, Roth Capital analyst Craig Irwin reiterated a Buy rating on PEIX, with a price target of $9, which represents a potential upside of 39.5% from where the stock is currently trading. Separately, on May 24, H.C. Wainwright’s Amit Dayal initiated coverage with a Buy rating on the stock and has a price target of $11.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Craig Irwin and Amit Dayal have a total average return of -6.1% and -19.4% respectively. Irwin has a success rate of 34.8% and is ranked #3844 out of 4124 analysts, while Dayal has a success rate of 31.3% and is ranked #3919.
Pacific Ethanol, Inc. produces and markets low-carbon renewable fuels in the Western United States. The company operates through the following segments: Production and Marketing. It produces and markets co-products, including wet and dry corn gluten feed, condensed distillers solubles, corn gluten meals, corn germs, distillers yeast, and CO2.