Struggling ethanol makers diversify to corn oil

Reuters
Thu Jun 21, 2012 12:56pm EDT
By Carey Gillam


* California company adds corn oil to ethanol business
* US ethanol producers make 4.69 mln lbs of corn oil daily
* Diversification needed to offset weak ethanol margins

June 21 (Reuters) - Another U.S. ethanol maker is moving to diversify its revenue stream as the industry continues to suffer depressed margins as costly corn supplies dwindle.

On Thursday, California-based Pacific Ethanol Inc said it was installing corn oil separation technology at one of its plants and planned to include its three other plants by the first quarter of 2013. The company said its corn oil business should start generating revenue in the first quarter of 2013.

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