The dry-mill ethanol plant in the northeast of the United States will have a capacity of 108 million gallons per year (409,000 cubic meters). During the first stage of the project, ethanol will be produced using corn as raw material, and subsequently using bio-waste. Ethanol production is expected to begin in the third quarter of 2008.
Pennsylvania Governor Edward G. Rendell said the project will receive $17.4 million in government investment.
Lukoil Americas has agreed to buy all of the plant's output, and will market gasoline blended with ethanol throughout its marketing network, which covers the northeast and mid-Atlantic regions of the U.S., the BioEnergy news release said.
The companies are considering several sites for the plant in Clearfield County, Pennsylvania. BioEnergy has selected Delta-T Corporation to design the plant. The facility will employ the same design that BioEnergy is using for its first plant in Lake Providence, Louisiana.
BioEnergy International is a private biotechnology company developing bio-refineries and technologies to produce specialty chemicals and renewable fuels from feedstocks and cellulose.
LUKoil owns 779 filling stations in New Jersey and Pennsylvania, which it bought in late spring 2004 from Conoco through its 100%-owned subsidiary Getty Petroleum Marketing Inc.