Lincoln Land Rail President Mike Rumbold says construction of the plant will begin next year on 192 acres in Galva, located about 50 miles northwest of Peoria.
Rumbold says the plant will produce 100 million gallons of the corn-derived fuel a year when it's finished by 2008. Big River Resources (based in West Burlington, Iowa) will then take over operations at the facility.
Last fall, Congress passed an energy bill that mandates the doubling of biofuels output by 2012. In January, President Bush gave the industry a further boost with an endorsement in his State of the Union speech.