Tennessee lawmakers approve funding for Vonore biofuels plant
The Associated PressOriginally published: November 19. 2009 3:01AM
Last modified: November 18. 2009 5:24PM
NASHVILLE -- A legislative panel that drew the ire of Gov. Phil Bredesen for delaying approval of a contract to operate a biofuels plant in East Tennessee agreed Wednesday on funding for the project.
Bredesen had warned lawmakers that their hesitance over the pilot project in Vonore could threaten a major commercial investment related to the effort to turn corncobs and switchgrass into ethanol. The governor hasn't identified the company, but has said an announcement could come next month.
The Joint Fiscal Review Committee voted 11-1 to approve the $11 million contract to operate the plant run by the University of Tennessee and DuPont Danisco.
Officials say the plant is scheduled to begin operations in December and it will transition from primarily using corncobs to mostly switchgrass within a year.
The university also announced Wednesday that it has been awarded $2.35 million in federal funding for switchgrass research and fuel production. The school says the money will double switchgrass planting to 2,000 acres.
The award brings the total federal involvement to $163.5 million. The state's initial investment was $70 million.
Copyright 2009 The Associated Press.
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