The Xethanol Corporation (AMEX:XNL) has announced plans to construct a 50 million gallon per year cellulosic ethanol plant on a site in Augusta, Georgia which would begin producing ethanol by mid-2007. The announcement came as the company confirmed that it has completed its due diligence process on its previously announced acquisition of a Pfizer pharmaceutical manufacturing complex in Augusta and will be closing on the complex within 30 days. 

PRAJ Technology, an India based world leader in bio-ethanol technology will provide detailed engineering services, process design and licensing as well as the supply of vital sections of the process plant. PRAJ was also selected to provide the same services for Xethanol's recently announced new 35 million gallon per year facility at its Blairstown, Iowa site.

The Facility Group of Atlanta, Georgia (www.facilitygroup.com) has been retained by the company to act as EPC (Engineering, Procurement and Construction) contractor for the new plant.

Christopher d'Arnaud-Taylor, Chairman and CEO of Xethanol, commented "Having completed our due diligence on the site, we decided to raise the capacity of this plant to 50 million gallons per year. It is being designed to run on a variety of feedstocks and we are already securing the necessary feedstock streams from the forest products industry to run at capacity when we begin production by mid-2007. By combining Xethanol's proprietary technologies with those of PRAJ, we believe that we will have achieved our goal of being a low-cost producer of fuel ethanol from cellulosic materials. With our recent announcement of expanding our Blairstown, Iowa facility to 41 million gallons per year and bringing Augusta on line with 50 million gallons per year, our stated production goals are within our sights."

Mr. Taylor further went on to say "We have selected two leading companies to facilitate the expeditious construction of the Augusta plant. PRAJ is a world leader in bio-ethanol technology, providing cutting edge design and construction and state-of-the-art engineering for ethanol production from a range of feedstocks. The Facility Group is one on the most highly regarded facilities contractors in the country. We are very pleased to be working with both PRAJ and The Facility Group on this project."

Lucas Rice, Xethanol's VP of Operations stated "This site is a prime example of Xethanol's strategy of exploiting shuttered industrial capacity and converting facilities that already have existing infrastructure to produce ethanol. In doing so, the company is able to save significant time and money in bringing facilities on line. This site, in particular, has millions of dollars in equipment and infrastructure in place and ready to use for ethanol production."