Earth2tech Starts Deathwatch For Pacific Ethanol (PEIX) And Nova Biosource Fuels (NBF)

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08:45:59 am on April 6, 2009 has started a deathwatch for Pacific Ethanol (PEIX) and Nova Biosource Fuels. Pacific Ethanol could be out of cash be the end of the month, and the company may go bankrupt. This shouldn’t be a huge surprise to anyone, as the price of ethanol has plummeted and people have become aware of how inefficient it is to produce ethanol from corn.

Nova Biosource Fuels filed for Chapter 11 last week, and its shares are no longer being traded on the New York Stock Exchange. Nova is not a producer of corn ethanol, and its demise has more to do with the credit crisis and the drop in oil prices, according to Clean2Tech:

While corn has been battered more than most feedstocks since the food-fuel debate erupted and cellulose seized the mantle of next-next-big-thing in biofuels, Nova’s fall reflects more than the tailspin of ethanol derived from corn. It’s also part of the larger credit environment that has many cleantech startups on the ropes, not to mention the drop in oil prices, which has put the squeeze on alternative fuels. The company supplied biodiesel to commercial truck fleets, and relied on more than 25 different vegetable oils, animal fats and greases in an effort to drive down costs. As Cleantech Group reports, the company posted a net loss of $11.1 million in the quarter ending January 31.

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