June 23, 2006

Western Milling to produce ethanol the cheap and green way

Western Milling, California's largest grain milling company, and Khosla Ventures, a venture assistance and venture capital firm, Friday (Jun 23) announced the formation of Cilion.

Cilion will operate modular, standardised 55 million gallons per year ethanol plants outfitted with technology that would make it cheaper and greener than standard corn-to-ethanol plants, the company said. A more than 90 percent reduction in petroleum use is expected. 

Cilion plans to have eight plant units in production by 2008 for a total of 440 million gallons a year in capacity with the first three in California.

Cilion would combine the ethanol production, grain handling, logistics and feed expertise of Western Milling with the company building and financial expertise of Khosla Ventures.

The two companies' technology and years of experience would allow the plants to have an energy advantage that is twice that of gasoline, said Kevin Kruse, Western Milling president.

Cilion would be able to produce environmentally friendlier ethanol in California at a lower cost than ethanol produced in the Midwest, the company said.