County Lands World's First Commercial Cellulosic Ethanol Plant

Verenium Corporation announced Thursday it will construct the world's first commercial-scale cellulosic ethanol plant in Highlands County, in cooperation with Lykes Brothers supplying the biomass.

The process to produce cellulosic ethanol, based on technology developed by the University of Florida, uses renewable grasses for fuel production instead of food crops.

The plant, which will provide about 150 full-time jobs in the production of 36 million gallons of ethanol per year, will cost about $250 million to construct on the Lykes Brothers ranch, off State Road 70 east of US 27.

Verenium plans to break ground in the second half of this year and have the plant in full production in 2011, said Tim Eves, vice president for commercial development.

An incentive package of about $15 million from the state was a key factor in the company deciding to build its first plant here, Eves said.

State incentives for the project include a $7 million "farm to fuel" grant from the Florida Department of Agriculture and Consumer Services, plus funding for infrastructure including road improvements, Eves said.

"I think it's a tremendous step for the country as well as the county," said Highlands County Commissioner Don Bates from Tallahassee, where he attended a press conference announcing the project by Verenium, Lykes Brothers and state officials.

Bates said the project "moves us away from being dependant on foreign oil, it will be very supportive of agriculture, and we will have another outlet for agriculture products that will not compete with the food crops."