Univ. of Tenn. to build cellulosic ethanol plant

The University of Tennessee said today it plans to build a $40 million "grassoline" plant to create ethanol from switchgrass and other plants.

UT said it's partnering with Cambridge, Mass.-based Mascoma to construct the 5 million gallon per year refinery in Monroe County.

"This partnership is a critical element in the Tennessee Biofuels Initiative, which has the potential to establish Tennessee as a national leader in ethanol production from cellulosic biomass," said UT Exec. VP David Millhorn.

The university said the biorefinery will be about one-tenth the size of a commercial production facility, but will allow researchers to create a system that can be expanded to larger plants across the state in coming years.

Millhorn said the project "should lead to new business and economic development opportunities for our farmers throughout the state."

When operating at full capacity, the facility is expected to require 170 tons per day of switchgrass and other agricultural and forest biomass.

Mascoma said an $8 million farmer incentive program is under development to encourage local production of switchgrass.

Construction is scheduled to begin by the end of the year, with the plant expected to be be operational in 2009.