Stockton port secures ethanol plant
Pacific Ethanol Inc. has confirmed through financial documents that it is planning an ethanol production plant in Stockton.
The Sacramento-based company had previously announced plans for five ethanol plants, including one already built in Madera, two under construction in Idaho and Oregon, one planned in California’s Imperial Valley and one in an undisclosed location. It had not previously publicly disclosed the Stockton location, though Port of Stockton officials have said they have approved construction of a Pacific Ethanol plant on port land. The port, located 75 east of San Francisco Bay, is one of the leading inland bulk ports in the nation.
The New York City branches of the German bank WestLB AG and Japan-based Mizuho Corporate Bank Ltd. have agreed to provide $325 million in construction financing. A loan agreement filed with the Securities and Exchange Commission Monday details construction financing arrangements, including construction financing of a Stockton plant.
Pacific Ethanol use corn to make ethanol. Pacific Ethanol is working to identify and develop other renewable fuel technologies such as cellulose-based ethanol production and biodiesel. Cellulose molecules, like those found in corn stalks and rice straw, are tougher to break down than the starch molecules in grains.
This is the second major construction announcement for the Port of Stockton in the past week. Last Monday, port officials announced a $220 million deal with Chicago, Ill.-based USG Corp. for a 90-acre facility that when completed will be the largest wallboard production plant in the nation.
Stockton port secures ethanol plant
