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Sweetwater Energy Inc. has landed its fourth multimillion contract to supply a California firm with industrial sugars for the production of cellulosic ethanol. The 15-year deal is estimated to be worth roughly $100 million.
The deal is with Pacific Ethanol Inc., a producer of low carbon fuels. Under the agreement, a cellulosic biorefinery facility capable of producing up to 3.6 million gallons of cellulosic ethanol will be built on the West Coast. There, Sweetwater will covert locally available cellulosic material, such as crop residues, energy crops, and wood waste into a sugar solution, which Pacific Ethanol will ferment into cellulosic ethanol.
“We are very pleased to work with Pacific Ethanol on this project,” said Arunas Chesonis, Sweetwater’s chairman and CEO, in a statement. “We are going to start by supplying up to 6 percent of Pacific Ethanol (Stockton location’s) feedstock requirements and, as our partnership grows we will evaluate increasing the amount.”
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