O2Diesel to Acquire Ethanol Producer Building 100 Million Gallon Plant

www.greencarcongress.com ^ | 01/18/2007 | Staff

[Red Badger]

O2Diesel Corporation, a developer of ethanol-diesel fuel blends, has entered into a definitive purchase agreement to acquire 80% of ProEco Energy Company, Inc., a privately held company that is developing an ethanol production facility in South Dakota with planned capacity of 100 million gallons per year. O2Diesel expects the acquisition to close during the second quarter of 2007.

Completion date for the first of two 50 million gallon production trains will be twelve months following project commencement. The second 50 million gallon train is scheduled for development and completion in 2008.

The acquisition will expand O2Diesel’s strategy of developing new markets for its ethanol-diesel blended fuel in the US. O2Diesel says that the consolidated company will expand and diversify its revenues, while providing stable and competitive pricing for ethanol supply for the production of O2Diesel for centrally fueled fleets.

By controlling ethanol supply at a competitive price, O2Diesel can offer its proprietary fuel blend at a price lower than regular diesel fuel, leveraging this advantage to gain further market share.

The definitive agreement requires ProEco Energy to complete a number of steps toward completion of the ethanol plant project in order for the closing of the share exchange to occur. At the time of the closing, ProEco Energy must have entered into a definitive engineering, procurement and construction contract with a reputable firm with extensive experience in implementing and completing projects similar to the ethanol plant project and executed marketing agreements for the sale of the production of the ethanol plant.

As a condition to the closing of the ProEco share exchange, O2Diesel is obligated to secure the financing necessary to complete the construction costs to build the ethanol plant. Accordingly, O2Diesel anticipates raising between $120 to $140 million in debt and between $60 to $80 million in equity in two tranches in 2007.

O2Diesel is also developing fuel blends with ethanol and biodiesel components as well as its ethanol-diesel mainstay.

[Red Badger]

Rest In Peace, old friend, your work is finished.......

If you want on or off the DIESEL "KnOcK" LIST just FReepmail me........

This is a fairly HIGH VOLUME ping list on some days......

[Red Badger]

KnOcK!.....

[edcoil]

If we don't have enough corn for food, how are we now suppose to split this limited, non renewing resource between petro and food?

[Red Badger]

Corn (as well as other seed plants) waste, stalks, cobs etc. can be used for both ethanol and biodiesel production......

[DeusExMachina05]

Ethanol from corn...the biggest boondoggle going.
The entire process actually cost more in energy than you get from the end result.

[Battle Axe]

Did you see the spot on Fox where the low income Hispanics are complaining that the cost of corn is too high to make low priced tortillas!!!!!!

[Don Carlos]

Is this blended diesel fuel compatible with the BlueTech and other emissions systems designed for ultra low sulfer diesel?

Its starting to look like diesel may be in my future - again!

[Red Badger]

Holy frijoles!.......

[Red Badger]

COmpatible? I don't see why not..........

[Balding_Eagle]

If we don't have enough corn for food, how are we now suppose to split this limited, non renewing resource between petro and food?

A system to deal with that problem was set up some centuries ago.

It's called capitalism.

[taxcontrol]

Diesel exhaust is going to start to smell like burnt corn chips.

BTW, how does this ethanol/diesel blend work? Is it ok for normal diesel engines or does it require modification? Anyone have a URL to a page that goes into some detail?

[Red Badger]

http://journeytoforever.org/biodiesel_svo.html#problem

[edcoil]

Then why does the government need to tax and mandate ethanol?

If people wanted it, capitalism would provide it.

[org.whodat]

non renewing resource

LOL

[Balding_Eagle]

Exactly, and that's how it should happen, without the 'friendly' government.

My earlier post to you was tongue in cheek.

The only government influence should be in the form of tax breaks or credits.

[org.whodat]

Is it ok for normal diesel engines

Corn for diesel is mostly bunk, diesel made out of rapeseed is about 100 times less costly.

[ClaireSolt]

After 200 years of grain surpluses there are still some who say we don't have enough corn foir food. It will be very interesting to see how much corn farmers plant this year. They are known for shooting themselves in the foot by overproducing.

[taxcontrol]

Isn't soybean oil the most produced oil in the US? Is the bulk rate of soybean oil lower than that of diesel? How does rapeseed oil compare cost wise in bulk.

Sorry for the long list of questions... just trying to be informed.

[JAKraig]

Isn't soybean oil the most produced oil in the US? Is the bulk rate of soybean oil lower than that of diesel? How does rapeseed oil compare cost wise in bulk.

_______________________________________________________

My understanding is that you are correct but that will change, and soon. There are many crops that will produce more oil than soybeans including hemp and sunflower. Eventually we will see successful extraction of high grade vegetable oil from algae. I suspect that the useless desert southwest will turn in to a huge source of "Diesel Oil".

[org.whodat]

Rapeseed oil=Canola oil, lots of it is produced, it is cheaper to grow per acre, and produces more per acre than corn or soybean, the left over and by product is good animal feed. Most farmers that were growing tobacco have not been growing anything but hay for animal feed. Production of rapeseed and are corn or soybean could double and or triple if the farmers think there is a demand. A lot of cotton fields in the south will be growing corn and rapeseed and soybean this year as an alternative to cotton. To make corn into ethanol requires ton's and ton's of sugar and is not cost effective.

However, a professor at Virginia Teck has come up with a new way, he plans , to convert sugar to hydrogen if it works, the energy crises is solved.