USDA provided funding support through its Biorefinery Assistance Program, and the biorefinery plant will be built by Fiberight based in Blairstown, Iowa.
The 55,000sq ft biorefinery facility will produce cellulosic ethanol by converting municipal solid waste and other industrial pulps into advanced biofuels, as well as using conventional renewable biofuel derived from seed corn waste.
When operational, the facility is expected to produce about 3.6 million gallons of cellulosic ethanol per year.
The process will use a cellulosic microbe to produce about 15% more ethanol than traditional fermentation technology, and reduce energy inputs in the fermentation and distillation process.
Fiberight also received a $2.5m grant from the Iowa Power Fund in 2010.
The company will work with the Benton County landfill to supply a portion of the feedstock for the project, and the total project cost is estimated at $59.5m.
