SOURCE: Gulf Ethanol Corp.

July 07, 2008 11:03 ET

Gulf Ethanol -- Understanding the Cellulosic Ethanol Fit -- Part 2

HOUSTON, TX--(Marketwire - July 7, 2008) - Gulf Ethanol Corporation (PINKSHEETS: GFET) is working to provide an alternative to corn-based ethanol and address the high cost of biofuel production.

Plants contain the cellulosic materials cellulose and hemicellulose. These complex polymers form the structure of plant stalks, leaves, trunks, branches, and husks. They are also in products made from plants, such as paper. Cellulosic feedstocks contain sugars within their cellulose and hemicellulose, but they are more difficult to biochemically convert into ethanol than starch- and sugar-based feedstocks, such as corn. Cellulose resists being broken down into its component sugars. Hemicellulose is easier to break down, but the resulting sugars are difficult to ferment. The plant compound lignin also resists biochemical conversion.

Cellulosic feedstocks suited to ethanol production include the following:

--  Sorghum
--  Agricultural residue -- crop residues such as wheat straw and corn stalks,
    leaves, and husks
--  Forestry residue -- logging and mill residues such as wood chips, sawdust,
    and pulping liquor
--  Grasses -- hardy, fast-growing grasses such as switchgrass grown
    specifically for ethanol production
--  Municipal and other wastes -- plant-derived wastes such as household
    garbage, paper products, paper pulp, and food-processing waste
--  Trees -- fast-growing trees such as poplar and willow grown specifically
    for ethanol production

GFET is developing a preprocessing system to aid in breaking down these components of biomass economically. During the next month Gulf will be testing its system and will have the results tested by several well known, third party labs to determine the net ethanol yield increase. Our projections lead us to believe that we will be able to gain significant increases in ethanol yield with economical energy expenditures.

About Gulf Ethanol Corporation

Gulf Ethanol is an alternative energy company focused on the development of the cellulosic ethanol industry with a particular emphasis on Texas and the Gulf Coast.

For more information please visit our homepage at:

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.

Contact Information

    William Carmichael
    1240 Blalock Road, Ste. 200
    Houston, Texas 77055
    Office: 713-461-9229
    Email Contact