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DPG and EPEC Biofuels Holdings LLC Form JV to Finance Sorghum Ethanol and Other Biofuels Projects; Up To $376M for Sorghum Ethanol Project Financing

DPG Investments, LLC has entered into a joint venture with EPEC Biofuels Holdings, Inc., a sweet sorghum ethanol company, to form a platform finance company which will provide project financing for EPEC and select financing initiatives in the biofuels and renewable energy sectors.

According to the joint venture agreement between the parties, DPG and EPEC have created EPEC Finance, LLC which has been granted the exclusive rights to fund up to $376 million of project financing for EPEC. These funds will be utilized by EPEC for the manufacture and deployment of EPEC’s proprietary Ethanol Production Units (EPUs) on select sweet sorghum farms throughout the country.

In addition, the new finance joint venture will also serve as a specialty finance and investment company that will seek to provide financing for various strategic acquisitions, partnerships and investments in the renewable energy and biofuel sectors on a global basis.

EPEC Finance jointly with EPEC Biofuels will seek to identify such biofuel and alternative energy initiatives that can provide a steady and predictable return on capital investments.

EPEC seeks to become one of the world’s largest producers of ethanol by operating a network of proprietary farm-based ethanol production facilities. In addition, EPEC seeks to become a global leader in manufacturing and servicing modular ethanol production equipment. EPEC says that its focus on sweet sorghum, rather than corn, combined with its intellectual property and model for farm-integrated ethanol production allows it to be the lowest cost producer.

Sweet sorghum can grow on marginal land unsuitable for corn, needs substantially less water and fertilizer, is more drought tolerant, and grows to maturity in less than four months. Since sweet sorghum is a sugar rich plant, it requires less energy to produce ethanol, resulting in a net yield of 8 energy units of output for every energy unit input according to EPEC. (Earlier post.)

DPG Investments, LLC is a diverse merchant banking, alternative investment, and advisory firm based in the Western US.

Comments

Henry Gibson

There is not enough land to produce a large fraction of the energy the US needs from any kind of plant.

Food prices in stores are still high. Corn prices are still much higher due to speculation that the world polititians will promote biofuels to pretend that they are doing something about high oil prices and CO2 releases. Forests instead of crops will reduce CO2. ..HG..

HarveyD

Agro-fuel, as a replacement for fossil fuel, is not a sustainable solution. It may even contribute to an extension of our addiction to inefficient ICE machines and delay transition to electrified vehicles.

However, a limited production may be required for our PHEVs for one to two decades and for the plastic and chemical industries and the post fossil fuel era.

sulleny

This is correct harvey. But there will remain a need for liquid fuels for very heavy lifting and aerospace. To that end the sooner we are refining biodiesel and jet fuel - the sooner we import less fossil. This is as important politically as it is environmentally and economically.

SJC

We can make biomethanol and reform that to hydrogen on the car for a fuel cell. Promoting biofuels is not prolonging the use of internal combustion. If you are an avid fan of BEVs, then project 50 million of them on the highways in the next 10 years, you would be WAY off.

Engineer-Poet

To the extent that sweet sorghum displaces corn in marginal areas, this could be a plus.  The sweet sap is fermented to alcohol, and the crushed stalks plus the leftover yeast becomes animal food.  Lower fertilizer requirements would raise the EROEI.  Anything to get away from corn raised on depleting groundwater and fossil-derived nitrogen.

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