Pete Reeves, chief executive officer of the company said that the plant is expected to cost $62.3 million and will create 80 green jobs.

The plant is slated for operation in 2010, Reeves said.

The project will initially produce 30 MMGY of ethanol with expectations to produce 100 MMGY at full capacity by the end of its fourth year of operation.

The plant will process self-generating power for its own use. The excess energy estimated at 15 megawatt will be sold to local utilities as electricity.

Biofuels America said that it has feedstock supply agreements in place and has an off take agreement from CHS to buy and market its ethanol.

Project Tennessee will draw part of its funding from public debt issued by the Industrial Development Board of Marion county in the amount of $20 million.

Reeves also said that the Project Tennessee will use bank debt to finance a substantial portion of its development cost.

Based on expectations, total bank participation needed is $19.7 million.

Currently, Biofuels America is discussing with SunTrust Bank to provide the debt facility. The debt facility will be partially guaranteed under the U.S. Department of Labor Section 9003 Bio-refinery Assistance Program. This program will provide a guaranty to the lending institution of around 80% of the borrower’s indebtedness for development and construction of a bio-refinery or for retrofitting an existing facility that uses eligible technology to develop bio-fuels.

Reeves said, “Our goal is to maintain a public/private funding structure and to partner with one or more equity providers that share our vision of producing alternative fuels and bio-chemicals to expand our business platform and to increase shareholder value. This investment opportunity is not limited just to Project Tennessee. BFA has plans to develop a number of other bio-refineries throughout the United States.

Project plans are already underway for a plant in East St. Louis, Illinois, and another in Mississippi. Future projects will be started once the initial three are brought on stream or are nearing completion.”