Pacific Ethanol Inc. announced Monday it would install a $12 million co-generation system at its Stockton ethanol plant, providing electrical power and steam heat, while at the same time burning waste gases and reducing smog-producing emissions from the facility.
The 3.5 megawatt co-generation system, expected to be completed by mid-2016, will give the plant among the lowest air emissions in the ethanol industry, company officials said.
“The Stockton co-generation system will replace most of the electricity we currently purchase from the grid and will reduce our energy costs by an estimated three to four million dollars per year,” said Neil Koehler, the company’s president and CEO. “Rather than destroying waste gases, we will reuse them as a source of process energy, reducing costs and improving profitability.”
PEI was founded in 2003 in Fresno by an investment group led by Bill Jones, former California Secretary of State and a Fresno County rancher. It has several production plants including one in Madera County on Avenue 12.