Earth Biofuels acquires ethanol facility
Earth Biofuels, Inc. announced that, its wholly-owned
subsidiary, Earth Ethanol, Inc., executed an agreement between Earth
Ethanol, Inc., HPS Development, LLC, (HPS), and South Louisiana
Ethanol, LLC, (SLE) to acquire a 50 percent membership interest
in SLE, which owns a former ethanol production facility in Plaquemines
Parish, located approximately nine miles southeast of New Orleans
on the Mississippi.
“Following scheduled reconstruction, we
believe that this state-of-the-art facility will be capable of producing
significant quantities of corn-based ethanol that can be directly
blended with gasoline and thereby extend our nation’s fuel
supply with a resource that is cleaner-burning, renewable, and domestically
produced,” said Dennis McLaughlin, chairman and chief executive
officer of Earth Biofuels, Inc.
Interim funding for necessary renovations has
been provided by Earth Biofuels, Inc., although the Company plans
for the majority of the reconstruction funding to be provided through
a financing spearheaded by Morgan Keegan & Company, Inc. The
reconstruction is expected to be completed in the third quarter
of 2007, and the facility’s production capacity is projected
to be at least 65 million gallons per year.