Japanese company JGC aims to establish a partnership with US-based Arkenol by the end of 2006.
The venture, which would start production in 2009, is intended to have an annual capacity of 30,000kl.
JGC, which is seeking funding to help finance the project, will supply technology for the construction and design of the plant, while Arkenol holds patents on technology to produce bioethanol from waste wood.
The bioethanol is designed for use in cars.
