A US$200m plant is planned to be built in Georgia by Range Fuels Inc. It will be sited in Soperton, right at the centre of the state’s timber industry.

The company says it has developed a process which can convert wood chips into ethanol in a commercial operation, with an initial production of 10 million gallons predicted.

Range Fuels uses heat and pressure to convert wood to a hydrogen-rich gas, which is then turned into ethanol.

The company’s chief executive Mitch Mandich said Georgia was chosen for the plant because of its abundant supply of timber, sawmills and wood waste products. He said construction work would start this year.