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Michigan, Washington fund northern Michigan ethanol plant

A proposed Michigan ethanol plant to be built across the border from Sault Ste. Marie, Ontario is receiving almost $50 million in funding from the state and federal government. The U.S.

A proposed Michigan ethanol plant to be built across the border from Sault Ste. Marie, Ontario is receiving almost $50 million in funding from the state and federal government.

The U.S. Department of Energy is contributing $26 million toward Mascoma Corporation's proposal to develop a cellulosic fuel facility to produce ethanol from timber and grasses. The State of Michigan is contributing $23.5 million.

The plant, located in Chippewa Country at Kinross, will use timber fibre from forest to create cellulosic ethanol. The development is expected to create new jobs but also spur forestry, transportation and other related industries.

Congressman Bart Stupak, who made the announcement Oct. 7, said the plant will "the first of its kind in the nation to produce ethanol from timber" and will put Michigan at the forefront of this developing technology that will create hundreds of jobs.