Pacific Ethanol subsidiary extends ethanol agreement with AE Keyes

In the US, Kinergy Marketing, a subsidiary of renewable fuels producer Pacific Ethanol, and AE Advanced Fuels Keyes, the wholly owned subsidiary of AE Biofuels, have extended their marketing arrangement by two years.

Under the arrangement, which the two companies entered into in November 2010, Kinergy sells the full 55 million gallons of ethanol produced at AE Keyes' plant, located in Keyes, California.

The agreement was formed following the startup of AE Keyes' facility in Q2 2011. Kinergy and AE Keyes signed the amendment to the marketing agreement on 7 September 2011, which extended the term through 31 August 2013.

'AE Keyes and Pacific Ethanol have a strong history of working together in support of the production of ethanol in California and the development of advanced biofuels,' says Andy Foster, president and COO of AE Keyes.