Biofuels research plant to open

BUTTE, Mont. (AP) -- A little research plant here got a lot of attention Monday. Gov. Brian Schweitzer and the state's full congressional delegation all were on hand to herald the AE Biofuels Inc. ethanol plant as the start of something very big. The company said it will perfect a process for producing cellulosic ethanol, which is made from fiber products such as wheat stocks or corn stalks. More commonly, corn itself is used to make ethanol. The $1.5 million Butte plant has just a few employees focusing on the work. But California-based AE Biofuels says that as early as next year, the company hopes to build a full-scale, $100 million production plant somewhere in the United States. Some day, the new way of making ethanol will be nearly as prolific as production of pure corn ethanol, the company said. AE Biofuels officials said they first expect the cellulosic ethanol process, which uses enzymes to make the alcohol instead of using heat from costly fuels, to work in conjunction with corn ethanol plants by using waste leftover in the traditional process. That means the ethanol industry - recently under fire on allegations it drove up the price of corn-based food - will become more efficient, said Andy Foster, chief operating officer for AE Biofuels.