Edeniq and Pacific Ag, have announced today a five-year exclusive collaboration agreement to assist existing corn-based ethanol production facilities to add cellulosic ethanol production. The technology will help corn-based ethanol plants diversify their feedstock sources and enhance long-term production margins. In addition, the cellulosic ethanol produced will qualify for as “cellulosic” fuels under the Renewable Fuel Standard (RFS).

“This collaboration holds the potential to enhance the commercial viability of cellulosic ethanol production in the US,” said Brian Thome, the President and CEO of Edeniq. “By combining Edeniq’s bolt-on production technologies for corn ethanol plants with Pacific Ag’s agricultural biomass supply capabilities, we will provide the best turnkey solution for today’s producers to economically integrate cellulosic production into their existing facilities.”

Today there are about 200 operating ethanol plants in the U.S. in 28 states. They produce nearly 14 billion gallons annually representing approximately 10 percent of all gasoline sold. The majority of these plants use corn as their primary feedstock, a commodity grain that has been subject to wide fluctuations in price and supply over the past decade, driven by competing end uses, market speculation and weather.

In an effort to diversify the feedstock pool, the Department of Energy issued its “billion ton” study in 2005. That study determined that U.S. agriculture and forest resources have the capability to produce at least one billion dry tons of biomass annually in a sustainable manner, enough to produce biofuels to meet more than one-third of the current demand for transportation fuels. Yet today, only a small amount of biofuels are produced using biomass and much more is needed.

“This collaboration agreement brings together two companies at the forefront of solving a big risk factor to commercial production of cellulosic ethanol: getting biomass from the field to the plant with maximum reliability and efficiency and successfully converting that biomass at a low per gallon capital investment for existing production facilities,” added Bill Levy, founder and CEO of Pacific Ag. “For Pacific Ag, this potential market represents a key additional sector in our strategy to maximize the role of ag biomass in the nation’s energy supply.”