I received this from a Sierra Club listserve, these are certainly interesting times.
----- Original Message -----
From: Ernie Rogers
To: [log in to unmask]
Sent: Saturday, September 16, 2006 12:35 PM
Subject: [GWTF] New paradigm for ethanol?
Picked up this story from the Future-fuels-and-vehicles list. This might actually change the ethanol paradigm. Someone should get more information.
Ethanol gets huge investment
Fri Sep 15, 2006 10:39 am (PST)
So here's a company that came up out of nowhere, grabs $200m venture
and proposes to be THE source of ethanol for California in just a few
Alternative Energy is quickly becoming the new bubble, the new Silicon
Valley "thing", the new venture darling. Only Silicon Valley has no
corner on this market. So if we apply a similar thinking to altener as
what occurred to the internet we should see an explosion of small
companies looking to make their technology the next killer app. We
should also see the rise of scams. Alt energy scams will will be tough
to pull off but no doubt we'll be seeing them. We'll then see a
leveling and then a die off as the money dries up and the stars of
altener rise to the top. After that we'll see consolidation where the
oil companies buy up only only the utility companies but all the
winners of the altener race.
Did I miss a step?
Why Archer Daniels Midland and Conagra or Pacific Ethanol haven't been
bought up I couldn't guess. Maybe they're too big. Or maybe it's too
soon. But here's some insight:
Back to Cilion:
"We are still pinning this story down, but we're hearing that Cilion,
the California ethanol comany formed by well-known Silicon Valley
venture capitalist Vinod Khosla (pictured here), has just raised $200
This may be the largest ever alternative energy deal by venture
capitalists. It is also significant because the company is so young;
it was formed barely three months ago. "
According to this press release the new company, Cilion, earlier post,
formed by Western Milling, a California grain company, and and Khosla
Ventures, a venture capital firm to operate modular, standardized 55
million gallons per year ethanol plants has now raised a total of $200
million in three months including $160 million in the latest round of
financing, one of the biggest venture capital investments ever in the
"clean tech'' field.
The company plans to have 8 plant units in production by 2008 for a
total of 440 million gallons per year capacity. By using a variety of
innovations they claim that these plants will be cheaper and greener
than standard corn-to-ethanol plants, substantially reducing the need
for fossil fuels in ethanol production.
They claim the plants will have an energy balance advantage that is 2X
that of gasoline with a greater than 90% reduction in petroleum use.
They also claim that Cilion will be able to produce environmentally
friendlier ethanol in California at a lower cost than ethanol produced
in the traditional Midwest corn ethanol plants and delivered to
California; and that the ethanol produced is expected to be price
competitive per mile driven with gasoline even if oil prices drop to
$40 per barrel.
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