Submitted by: Williams Companies, Inc.
Posted: Dec 11, 2001 – 11:00 PM EST
Dec. 11 /CSRwire/ - A unit of Williams (NYSE:WMB) announced today that it has entered into an agreement to market all fuel-grade ethanol produced by Pine Lake Corn Processors. The 15 million-gallon-a-year ethanol plant located in Steamboat Rock, Iowa, will begin production in late 2002.
The Pine Lake relationship marks Williams’ tenth ethanol marketing agreement since the beginning of the year, and will bring the amount of ethanol Williams markets to 415 million gallons a year. Financial terms of the Pine Lake agreement, which recently went into effect, were not disclosed.
As the second-largest producer and marketer of ethanol in the United States, Williams currently supplies approximately 300 million gallons of the nation’s ethanol needs through the company’s ethanol plant production, business relationships and marketing agreements. Of that amount, Williams produces 130 million gallons of ethanol per year through its wholly owned facility at Pekin, Ill., and 76 percent-owned Aurora, Neb., facility.
Ron Miller, vice president of Williams Bio-Energy, who leads the company’s ethanol business, said the company plans to extend its ethanol distribution because of the growing demand for ethanol. Large market opportunities for fuel ethanol are developing in California as methyl tertiary butyl ether (MTBE) is being phased out by 2003 as a result of California Clean Burning Gasoline regulations. A decision from the Environmental Protection Agency earlier this year affirmed ethanol’s environmental benefits. Additionally, MTBE in reformulated gasoline is being eliminated in New York and Connecticut by 2004.
"Williams meets this demand growth through expanding relationships to purchase and re-sell ethanol produced by third parties through the company’s extensive distribution system," Miller said. “Our agreements with Pine Lake Corn Processors and other producers help us meet market needs.” Additional producers include Ace Ethanol LLC [Stanley, Wis.], Adkins Energy LLC [Lena, Ill.], U.S. Energy Partners [Russell, Kan.], Northeast Iowa Grain Processors Cooperative [Earlville, Iowa], Tri-State Ethanol Company, LLC [Rosholt, S.D.], Quad County Corn Processors Cooperative [Galva, Iowa], Heartland Grain Fuels [Aberdeen and Huron, S.D.] and Sunrise Energy [Blairstown, Iowa].
Ethanol is a domestic, renewable fuel that is used as a high-quality octane enhancer. As an oxygenate, ethanol is capable of reducing air pollution and improving automobile performance. Ethanol-blended fuels account for more than 12 percent of all automotive fuels sold in the United States.
For more information, contact Mark Luitjens, Williams Bio-Energy, at (605) 725-9101. Information about Williams Bio-Energy can be found at www.williamsbioenergy.com.
About Williams (NYSE: WMB) Williams, through its subsidiaries, connects businesses to energy, delivering innovative, reliable products and services. Williams information is available at www.williams.com.
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