NewGen Fuel advances despite partner's bankruptcy

By Erin Voegele | February 04, 2009
Web exclusive posted Feb. 12, 2009, at 4:34 p.m. CST

Less than one month after wholesale fuel distributor Crescent Oil Co. formed the joint venture NewGen Fuels with ICM Inc. and Poet LLC, it has filed for Chapter 11 bankruptcy.

ICM, an ethanol design and engineering firm, and ethanol producer Poet, along with Crescent Oil, announced Jan. 26 that the companies were forming NewGen Fuel, with the mission to install ethanol blender pumps at retail locations throughout the U.S. (Read "ICM, Poet, Crescent Oil form NewGen Fuel.")

While the goals of NewGen have not changed, Alan Goodnight, NewGen Fuel's president, said scope and timing of those goals may be affected. "NewGen Fuel is its own business entity," Goodnight said. "The unfortunate news from Crescent in no way impacts the viability of NewGen Fuel."

While Crescent Oil's financial difficulty does not deter NewGen Fuel's mission and objective of increasing retail distribution of ethanol through blender pumps, Goodnight said it may affect NewGen Fuel's timing and the locations at which the blender pumps are installed. The initial sites NewGen Fuel had selected are locations served exclusively by Crescent Oil.

Goodnight said NewGen Fuel currently has no plans to replace Crescent Oil. "However, if it became obvious that Crescent Oil could no longer supply the hydrocarbon fuel to NewGen, we would of course need to find another supplier," he said.