Vinod Khosla forms Cilion to produce ethanol in California
PRNewswire: Super VC Vinod Khosla who is a big backer of cellulosic ethanol has formed a company called Cilion to produce Ethanol in California. This is something to keep an eye on as they are not going to use Corn to make ethanol and they are claiming that the Ethanol they produce will be cost effective with gasoline even if oil is trading at $40/barrel. It would be interesting to see if they take Cilion public anytime soon to take advantage of the Ethanol boom.
From the news release, Western Milling, California’s largest grain milling company, and Khosla Ventures, a venture assistance and venture capital firm, today announced the formation of Cilion. Cilion will operate modular, standardized 55 million gallons per year ethanol plants.
Highlights:
- Cilion plans to have 8 plant units in production by 2008 for a total of 440 million gallons per year capacity. The first three plants are expected to be in California. The ethanol production, grain handling, logistics and feed expertise of Western Milling combined with the company building and financial expertise of Khosla Ventures will provide Cilion with a unique advantage.
- According to Western Milling President Kevin Kruse, “Our technology and years of experience will allow our plants to have an energy balance
advantage that is 2X that of gasoline. In addition we expect a greater than 90% reduction in petroleum use.
- When fully operational, ethanol produced by Cilion is expected to be price competitive per mile driven with gasoline even if oil prices drop to $40 per barrel, assuming normal gasoline distribution margins.
- California Governor Arnold Schwarzenegger recently issued Executive Order S-06-06 establishing targets for the use and production of biomass
products. The executive order called for California to produce a minimum of twenty percent of its own biofuels by 2010 and forty percent by 2020. Of the 900 million gallons of ethanol currently consumed in California, only five percent is produced in California.
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August 14th, 2006 at 8:42 am
Ret disabled NYC firefighter former XNL investor. I had the bulk of my investment capitol in XNL . Have moved out to AENS would be very interested in staying in Bio ethanol. Would be very interested in this company going public. Will watch for notices of IPO .
August 18th, 2006 at 10:26 am
I would be very interested in knowing more about this company and when they plan to go public.
August 18th, 2006 at 7:54 pm
I need to do some further research into this as well. I will see what I can dig up.
September 22nd, 2006 at 7:35 pm
Would like to know when this company goes public?
September 26th, 2006 at 8:43 am
Please let me know in advance when this company plans to go public. Thanks
October 10th, 2006 at 1:22 pm
Like to know more about this company, and also what involvment will Mr. Richard Branson have.
And also when will they trade on Nasdaq? or any other?
February 12th, 2007 at 4:11 pm
When is Cilion planning their IPO? Does Khosla Ventures have public intentions? I am interested in their entire portfolio. Please notify me if you hear anything.