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Cellulose efficiency to surpass corn-based ethanol

Recent studies by the United States Department of Agriculture and the University of Nebraska found the cellulose feed stocks can produce up to 540 percent more energy than is consumed by their production.  Growers in Nebraska and the Dakotas participated in the five year study, planting switchgrass and keeping records on fuel and inputs costs.


January 25, 2008
By Gulf Ethanol Corporation

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CELLULOSE EFFICIENCY WILL FAR SURPASS CORN BASED ETHANOL

January 15, 2008 

Recent studies by the U.S. Department of Agriculture (USDA) and the University of Nebraska found that cellulose feed stocks can produce 540% more energy than is consumed in their production. Corn ethanol has been criticized by some as energy inefficient because it produces only 25% more energy than it takes to make it. Cellulose changes the energy equation for ethanol production. A five times energy output to energy input will make ethanol a very efficient renewable fuel.

Farmers in Nebraska and the Dakotas participated in the five-year study by planting switchgrass and carefully recording all costs for fuel, fertilizer, etc. The study concludes that ethanol production would equal 300 gallons per acre. U.S. News and World Report states, "If cellulosic ethanol becomes a widespread fuel, it would be a boon for agricultural regions."

"This study echoes the message we have been communicating to the market since 2007," noted CEO, JT Cloud. "The future of alternative transportation fuels in America must be based on non-food plant feedstocks! Gulf is a pioneer in this important front-line fight for energy independence through its aggressive work with emerging cellulosic technology companies," he concluded.

Alternative biofuels constitute a critical component of America's alternative energy future. Market leaders include agricultural ethanol producers such as ADM (NYSE:ADM), Cargill and soybean processor Bunge Limited (NYSE:BG). As the initial corn-based ethanol plants proved to be inefficient, the market quickly realized that the future of biofuels would depend on the ability to turn non-food biomass into alternative fuels efficiently. With large energy companies such as ConocoPhillips (NYSE:COP) and Exxon Mobil (NYSE:XOM) also launching alternative fuel initiatives, Gulf Ethanol is perfectly positioned in the path of progress.

Gulf Ethanol (OTC:GFET) is an alternative energy company focused on the development of cellulosic ethanol technologies with a particular emphasis on Texas and the Gulf Coast. They hold an exclusive license to a cellulosic feedstock pre-processing technology that they intend to deploy in cooperation with Meridian Biorefining through a joint venture. For more information please visit our homepage at: www.GulfEthanolCorp.com
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