Earth Biofuels subsidiary to operate new U.S. ethanol production plant

DALLAS, Texas, USA, February 13, 2007 Earth Ethanol Inc, a subsidiary of Earth Biofuels Inc, has signed an agreement with Liquafaction Corporation to build and operate an ethanol production plant near Moses Lake, Washington, USA. 80% of the new facility will be owned by Earth Ethanol. The site is expected to produce around 36 million gallons of ethanol annually by the end of 2007.

An existing ethanol site constructed in 1992 will be renovated, upgraded and expanded to create the new production plant, which will be able to process both corn and barley as feedstock. 

"The estimated production capacity of this facility is in line with our objective of having an annualized ethanol production rate of at least 30 million net gallons by the end of 2007," said Earth Biofuels' Executive Vice President, Kit Chambers. "With the strong ethanol market on the west coast and specifically in Seattle, we believe this is a great opportunity for Earth Ethanol."

Production at the facility is expected to increase incrementally – from an initial 12 million gallons per year in June 2007 to 36 million gallons per year by November 2007.

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