Colusa Biomass Energy Corporation (CLME) announced that it had received the much awaited preliminary engineering study for its first rice straw to ethanol bio-refinery in Colusa, California, located in the heart of the state's rice growing area.

Tom Bowers, Colusa Biomass Energy Corporation's CEO, said, "This preliminary engineering study in an important step on our path to commercializing our proprietary rice straw conversion to ethanol process. Our engineering consultants, the Harris Group, is a highly respected engineering firm with extensive experience in developing cellulosic ethanol processes and who have conducted studies for National Renewable Energy Laboratory (NREL) among others.

This preliminary report establishes the validity and viability of our proprietary process in scientific and engineering terms and provides a first-order estimate of the operating and capital costs. Based on this study, Harris Group has advised us to proceed with full engineering development and construction of our first plant."