ICM Inc., based in Colwich, has been awarded a turn-key installation contract to put its patented corn oil separation technology in the Pacific Ethanol Magic Valley Plant in California.
Pacific Ethanol is the leading marketer and producer of low-carbon renewable fuels in the Western United States.
Neil Koehler, the company's president and CEO said Pacific Ethanol expects ICM's Advanced Oil Separation System to be fully operational in the Magic Valley plant by the end of 2012. In addition, the company intends to implement corn oil separation technology at all of its plant by the end of the first quarter of 2013.
Koehler said Pacific Ethanol expects the new technology will begin generating revenue in the first quarter of 2013.
"Consistent with our efforts to further diversify our revenue streams and improve plant performance, we will install corn oil separation technology at our Magic Valley plant," Koehler said. "We expect to soon award future contracts for the three other Pacific Ethanol plants. Corn oil is a high value product for the Pacific Ethanol plants. The Magic Valley plant is expected to produce approximately 12 million pounds of corn oil per year, which at current prices would contribute as much as $4.5 million, or seven cents per gallon, of operating income annually."
Pacific Ethanol also sells co-products, including wet distillers grain, a nutritional animal feed. Serving integrated oil companies and gasoline marketers who blend ethanol into gasoline, Pacific Ethanol provides transportation, storage and delivery of ethanol through third-party service providers in the Western United States, primarily in California, Arizona, Nevada, Utah, Oregon, Colorado, Idaho and Washington.
Pacific Ethanol has a 34% ownership interest in New PE Holdco LLC, the owner of four ethanol production facilities. Pacific Ethanol operates and manages the four ethanol production facilities, which have a combined annual production capacity of 200 million gallons.
ICM has provided the design for 102 ethanol plants in North America and continues to work to provide "bolt-on" improvements that help ethanol producers increase both the amount of ethanol derived from each bushel of corn and the quality of the by-products from the process. Its Advanced Oil Separation System received a patent on June 5.