CUPERTINO, CA --- AE Biofuels Inc., a global biofuels company, said it has signed a strategic agreement with Pearson Fuels to supply cellulosic ethanol to the company's renewable-fuels filling stations in California. 

Pearson Fuels built the first E85 fuel station in California six years ago and has expanded statewide. 

Under the terms of the agreement, AE Biofuels will supply Pearson Fuels with cellulosic ethanol and other biofuels for distribution through renewable-fuels filling stations in California. AE Biofuels and Pearson Fuels will also use available government programs to develop additional renewable fuels filling stations in the state. Under the Renewable Fuels Standard (RFS) of the Energy Independence and Security Act of 2007, 100 million gallons of cellulosic ethanol use is mandated in 2010, increasing to 1 billion gallons per year by 2013. 

"Ethanol from non-food sources will expand rapidly as new mandates take effect in the next year. We are pleased to be working with Pearson Fuels to supply E85 stations throughout California with next-generation, clean, renewable fuel," said Eric McAfee, chairman and CEO of AE Biofuels. 

"AE Biofuels will bring advanced biofuels to both our existing stations and the many we have under development," said Mike Lewis, owner and general manager of Pearson Fuels. "We have been saying for years that cellulosic ethanol will be the next big step for the biofuels industry, and this agreement will go a long way to make that goal a reality."