Sweetwater teams up with Ace Ethanol on cellulosic ethanol production

Jan 7, 2013 - US cellulosic sugar producer Sweetwater Energy Inc said Friday it had signed a partnership agreement with biofuels group Ace Ethanol to launch production of cellulosic ethanol at Ace’s facility in Wisconsin.

Under the terms of the up to 16-year agreement, Sweetwater will be responsible for the processing of locally available cellulosic, non-food biomass into sugar, which will be used by Ace to produce ethanol.

The contract’s potential value exceeds USD 100 million (EUR 76m) and will require a minimal capital investment by Ace Ethanol.

Neal Kemmet, president of Ace Ethanol, said that the agreement would allow the company to diversify its ethanol production from 100% corn to a combination of corn starch and 7% cellulosic sugar as feedstocks.

The partnership agreement allows Sweetwater to install one of its cellulosic facilities next to Ace Ethanol’s site, and delivering enough refined sugar for the production of up to 3.6 million gallons (13.6m litres) of ethanol annually during the initial phase of the partnership.

(USD 1 = EUR 0.765)

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