PEKIN, Ill., Feb. 22, 2007 (PRIME NEWSWIRE) -- Aventine Renewable Energy Holdings, Inc. (NYSE:AVR), a leading producer, marketer and end-to-end supplier of ethanol, today announced it has signed marketing agreements for two additional Panda Ethanol, Inc. plants. The two Panda ethanol refineries will be located in Yuma, Colorado and Haskell County, Kansas.
Each Panda facility will have the capability to produce 105 million nameplate gallons of denatured ethanol annually. Both of these facilities are expected to be completed by the end of the first quarter of 2009. Additionally, the companies also entered into a master agreement that provides for a long-term structure as to how the ethanol produced by these and possibly other Panda plants would be marketed by Aventine.
Ron Miller, Aventine's President and Chief Executive Officer said, "We are pleased to add these additional Panda facilities to our growing marketing alliance. Altogether, we will now be marketing the ethanol for three of Panda's facilities. Panda's new facilities will allow us to expand our marketing presence in the western U.S."
About Aventine
Aventine is a leading producer, marketer and end-to-end distributor of ethanol in the United States. Aventine produces, markets and distributes ethanol to leading energy companies. In addition to ethanol, it is also a producer of distillers grains, corn gluten feed, corn germ and brewers' yeast.
Internet address is www.aventinerei.com.
About Panda Ethanol
Panda Ethanol, Inc. (OTCBB:PDAE) is headquartered in Dallas, Texas. The company is currently developing six 100 million gallon-per-year ethanol projects located in Texas, Colorado, Kansas and Nebraska. Four of these facilities will each generate the steam used in the ethanol manufacturing process by gasifying upwards of 1 billion pounds of cattle manure per year.
Panda is currently constructing its first biomass refinery in Hereford, Texas and anticipates ethanol production to commence during the fourth quarter of 2007. Once complete, the Hereford facility will be one of the most fuel-efficient ethanol refineries in the nation and the largest biomass-fueled ethanol plant in the United States.
Panda Ethanol's founder is Panda Energy International, a privately-held company which has built more than 9,000 MW of electric generation capacity at a cost of $5 billion.
In 2005, Newsweek magazine named Panda one of the 10 most eco-friendly companies in America.
Forward Looking Statements
Certain information included in this press release may be deemed to be "forward looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release, are forward looking statements. Any forward looking statements are not guarantees of Aventine's future performance and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements. Aventine disclaims any duty to update any forward looking statements. Some of the factors that may cause Aventine's actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements include the following:
* Changes in or elimination of laws, tariffs, trade or other
controls or enforcement practices such as:
-- National, state or local energy policy;
-- Federal ethanol tax incentives;
-- Regulation currently proposed and/or under consideration which
may increase the existing renewable fuel standard and other
legislation mandating the usage of ethanol;
-- State and federal regulation restricting or banning the use of
Methyl Tertiary Butyl Ether;
-- Environmental laws and regulations applicable to Aventine's
operations and the enforcement thereof;
* Changes in weather and general economic conditions;
* Overcapacity within the ethanol and petroleum refining industries;
* Total United States consumption of gasoline;
* Availability and costs of products and raw materials, particularly
corn, coal and natural gas;
* Labor relations;
* Fluctuations in petroleum prices;
* The impact on margins from a change in the relationship between
prices received from the sale of co-products and the price paid
for corn;
* Aventine's or its employees' failure to comply with applicable
laws and regulations;
* Aventine's ability to generate free cash flow to invest in its
business and service any indebtedness;
* Limitations and restrictions contained in the instruments and
agreements governing Aventine's indebtedness;
* Aventine's ability to raise additional capital and secure
additional financing, and our ability to service such debt, if
obtained;
* Aventine's ability to retain key employees;
* Liability resulting from actual or potential future litigation;
* Competition;
* Plant shutdowns or disruptions at our plant or plants whose
products we market;
* Availability of rail cars and barges;
* Renewal of alliance partner contracts;
* Our ability to receive and/or renew permits to construct and/or
commence operations of our proposed capacity additions in a timely
manner, or at all; and
* Fluctuations in earnings resulting from increases or decreases in
the value of ethanol inventory