Ethanex Energy and Eco-Energy Sign Ethanol Offtake Agreement
Donnerstag, 4. Januar 2007 14:30:36 (GMT+01:00)
Provided by: Business Wire
BASEHOR, Kan.--(Business Wire)--Ethanex Energy, Inc. (OTCBB: EHNX), a renewable energy company whose mission is to become the ethanol industry's low-cost producer, announced today that it has entered into an agreement with Eco-Energy, Inc. for the marketing of its ethanol production. Under the terms of the agreement Eco-Energy shall purchase Ethanex's entire output of ethanol for a minimum of five years at prevailing market prices as well as provide certain transportation and logistics services.
Eco-Energy is the largest independent ethanol marketer in the United States selling into every blending location in the country. Consistently ranked in the top three ethanol suppliers to the petroleum industry Eco-Energy will provide the marketing services necessary for Ethanex's production facilities to maximize their return on investment.
"Eco-Energy seeks to align itself with companies that bring competitive advantages to the ethanol industry through location, cost or technology to ensure long-term viability and success of the relationship," said Andy Sallee, Chief Operating Officer for Eco-Energy, Inc. "Eco-Energy is pleased to have entered a long-term ethanol marketing agreement with Ethanex Energy, Inc. We believe Ethanex's model will allow them to remain a very competitive, long-term supplier as the ethanol industry continues to grow. Further, these facilities will help Eco-Energy enhance its ability to ship from multiple locations."
"We believe that Eco-Energy's non-pooled marketing program and exceptional access to ethanol end users is the best solution to leverage Ethanex's strategic plant locations," said Al Knapp, President and Chief Executive Officer of Ethanex. "This relationship represents another key building block that we have secured in our first 120 days as a public company. We look forward to an eventful 2007."
About Eco-Energy, Inc.
Eco-Energy, Inc. is a leading energy and chemical marketing and trading company with offices in Franklin, TN and Los Angeles, CA. The company was founded in 1992 and has established an excellent reputation serving clients in the petroleum, renewable fuels and chemicals industries. Eco-Energy's mission is to serve ethanol, bio-fuel, chemical producers and end users. Our goal is to provide producers with reliable outlets at the highest economic values. Our objective with end users is to be dependable, provide supply at competitive market prices and to be creative to meet the customer's demand schedule and logistics requirements.
Ethanol was one of the first commodities Eco-Energy traded and continues to be the largest share of our business. We maintain excellent relationships with ethanol producers and major ethanol end users. We specialize in adding value through freight advantages, trade flexibility and creativity. Eco-Energy services the entire United States maintaining storage in strategic locations for local supply and back-up storage. For more information about Eco-Energy, visit www.eco-energyinc.com.
About Ethanex Energy, Inc.
Ethanex Energy, Inc. is a renewable energy company whose mission is to become the ethanol industry's low-cost producer. The company expects to achieve this industry position through the application of next-generation feedstock technologies and use of alternative energy sources. Ethanex Energy is currently developing three ethanol production facilities located in the mid-west, with a combined production capacity of approximately 400 million gallons of ethanol per year. The Company expects these three plants to be operational in 2008. Ethanex Energy is concentrating its geographic focus in areas that allow access to abundant supplies of corn, alternative energy sources, transportation infrastructure and the potential for expedited permitting. Ethanex Energy's acquisition and brownfield development strategies afford it rapid capacity development with significant operating cost advantages. The Company's senior management has over eighty years of experience in the energy sector including the design, construction and operation of hundreds of power generation facilities. Ethanex Energy is based in Basehor, Kansas with offices in Santa Rosa, California and Charleston, South Carolina. For more information about Ethanex Energy, visit www.ethanexenergy.com.
Forward-Looking Statements
This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, including without limitation those statements regarding the Company's ability to exploit ethanol development and production opportunities. These statements are expressed in good faith and based upon a reasonable basis when made, but there can be no assurance that these expectations will be achieved or accomplished. Although the forward- looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements including, but not limited to, our inability to generate sufficient operating cash flow to construct and adequately maintain our production facilities and service our anticipated debt, commodity pricing, environmental risks and general economic conditions. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including those risks set forth in the Company's Current Report on Form 8-K filed on September 6, 2006, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward- looking statements in order to reflect any event or circumstance that may arise after the date of this release.
Ethanex Energy, Inc.
Chief Operating Officer
Bryan Sherbacow, 843-724-1555
b.sherbacow@ethanexenergy.com
www.ethanexenergy.com
or
Investor Relations:
Strategic Growth International
Jennifer K. Zimmons, Ph.D., 212-838-1444 jzimmons@sgi-ir.com
www.sgi-ir.com
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