BOISE -- A shuttered southern Idaho ethanol refinery could resume fuel production, citing improved market conditions. California-based Pacific Ethanol Inc. filed documents in U.S. Bankruptcy Court in Delaware this week asking for permission to reopen its plant in Burley, Idaho. A court hearing is set for Dec. 14.
In addition to falling corn prices that reduce its raw material costs, Pacific says the market is being buoyed by a pending federal deadline to allow ethanol blends in gasoline to increase from 10 percent to 15 percent.
The company says more favorable market conditions have produced "positive revenues" at its plant in Boardman, Ore., the only one of Pacific's four facilities still operating.
Opening the Burley facility, closed since January, would produce additional revenue to help meet obligations with lenders, the company said.
Pacific's secured debt topped $270 million when the company filed for Chapter 11 bankruptcy protection in May.
