Chevron to build at least three biofuel plants

By OGJ editors
HOUSTON, Oct. 12 -- A Chevron Corp. subsidiary has agreed to conduct proposal preparation for the development of at least three biofuel production plants for Ethanex Energy Inc., a renewable energy company engaged in low-cost ethanol production.

The agreement calls for Chevron Energy Solutions (CES) to perform engineering, geotechnical studies, and site and civil design work to prepare a detailed proposal for developing and building ethanol plants that use advanced technology to maximize efficiency.

The proposal will include authorization for CES to negotiate contracts to engineer, procure, and build the biofuel plants by 2008.

The plants, which are to be built in Missouri, Illinois, and Kansas, will each produce about 132 million gal/year of fuel-grade ethanol.

Currently, the total production capacity of ethanol facilities in the US is about 5 billion gal/year, Chevron said.

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