Tuscola Economic Development Inc. was awarded a $25,000 grant Thursday for assistance in developing an estimated 50 million-gallon ethanol facility in Douglas County.

Douglas County Farm Bureau and Tuscola Economic Development Inc. recently announced the forming of Illinois Prairie Ethanol.

The Illinois Prairie Ethanol board hopes the new plant will begin construction in 2007 and will be located in the industrial plant west of Tuscola near Lyondell Equistar and Cabot Corp. plants.

It is estimated 35 new jobs will be created, and there will be a demand for more than 18 million bushels of corn, said Phil Lamb, president of Illinois Prairie Ethanol.

Lamb is pleased with the proposed site because it is already an established industrial area, so he doesn’t believe there will be objections from neighbors.

The advantages of that site include purchase of coal fired power from existing plant Synergy; the existing water lines; the close proximity to transportation routes including CSX, Union Pacific and Canadian National and to roads including U.S. 36 and Interstate 57.

Ethanol is a corn-based additive blended with gasoline.

“As a farmer, I see the need to keep developing markets for our commodities,” said Dan Meyer, vice president of Illinois Prairie Ethanol. “Renewable fuels has been something our industry as been working on for years, and I think we have only begun to scratch the service as far as demand and usage.”

The Douglas County Board appropriated $5,000 for the project, and Tuscola Economic Development Inc.and the farm bureau appropriated $7,500 a piece for the project.

“With that $20,000, we were able to receive a grant from the Illinois Corn Marketing Board for a feasibility study from Pro Exporters,” Lamb said. “They are consultants specializing in the ethanol industry.”

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