Pacific Ethanol resumes production

By Luke Geiver | January 04, 2010
Posted Jan. 11, 2010

Pacific Ethanol Inc. resumed production at its 60 MMgy Magic Valley facility in Burley, Idaho, in early January. After beginning production operations in April 2008, the Magic Valley plant suspended production in February 2009. Due to unfavorable market conditions, the company's subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in a restructuring effort for the Burley and four other plants. In December 2009, the Company obtained necessary court and lender approvals to resume operations at the Magic Valley facility.

Paul Koehler, vice president of Pacific Ethanol commented on the future of the Magic Valley facility, "The plant is running good and they are moving rapidly to work out the kinks to get back to full capacity." According to Koehler the time frame for full production is one month to six weeks. The other plants to file for Chapter 11 along with Magic Valley are located in Stockton, Calif., Madera, Calif., and Boardman, Ore. Pacific Ethanol also owns a 42 percent share in a Windsor, Colo. plant. Koehler said the Burley location is the only one to reopen at this time.