With new cellulosic ethanol joint venture, POET to decline DOE loan guarantee before drawing funds
POET – DSM Cellulosic Ethanol, LLC makes loan guarantee unnecessary
Monday, January 23, 2012 - Project LIBERTY/Cellulosic Ethanol
WASHINGTON, DC (January 23, 2012) – In light of its joint venture with DSM, POET does not plan to utilize the loan guarantee it was awarded by the U.S. Department of Energy (DOE). POET received a commitment for a $105 million loan guarantee to finance Project LIBERTY on September 23, 2011. Upon the closing of the joint venture, POET will officially decline the guarantee prior to drawing any funds.
“The loan guarantee commitment from the DOE was an important milestone in our quest to commercialize cellulosic ethanol, and we are appreciative of the work they put into the due diligence process,” POET founder and CEO Jeff Broin said. “We believe that the joint venture with DSM positions us well to meet our ambitious cellulosic ethanol production goals, and thus the loan guarantee has become unnecessary.”
Earlier today, POET announced a joint venture with DSM, the global Life Sciences and Materials Sciences company, to commercially demonstrate and license cellulosic ethanol. For more information on Project LIBERTY and the POET – DSM Cellulosic Ethanol joint venture, please visit http://www.poetdsm.com/
POET, one of the world’s largest ethanol producers, is a leader in biorefining through its efficient, vertically integrated approach to production. The 25-year-old company has a production capacity in excess of 1.6 billion gallons of ethanol and 9 billion pounds of high-protein animal feed annually from its network of 27 production facilities. POET also operates a pilot-scale cellulosic bio-ethanol plant, which uses corn cobs, leaves, husk and some stalk as feedstock, and expects to commercialize the process in Emmetsburg, Iowa. For more information, visit http://www.poet.com