Yesterday another firm expanded its portfolio in ethanol, according to Biofuel Review Xethanol bought an old medium-density fibreboard factory located in Spring Hope, NorthCarolina for $4.0 million in cash, and some pocket change, (1,197,000 shares of Xethanol common stock and warrants to purchase an additional 300,000 shares of Xethanol common stock at $4.00 per share) so what are they going to do with it?
Make ethanol, as Thomas Endres, Xethanol’s Senior Vice President of Operations says in a company release
The plant has existing production infrastructure that can rapidly be adapted. There are powerful digesters on site fed by a large scale, biomass pre-processing module that is in working order. We are planning to start with a five million gallon per year pilot plant fed by one digester that we expect to bring on stream in approximately six months. Once we have proven the technology on a pilot basis, we will be able to increase the rate of ethanolproduction up to a maximum of 35 million gallons per year based on available technology and equipment
More juicy Xethanol information in the firm’s SEC filings here.