Mich. officials chip in on wood-to-ethanol plant

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By Beth Boehne

Story Created: Jun 27, 2008 at 9:28 AM EDT

Story Updated: Jun 27, 2008 at 12:29 PM EDT

DETROIT (AP) — Michigan's Upper Peninsula is expected to be the host of a plant that would turn wood chips into fuel.

Gov. Jennifer Granholm and Boston-based Mascoma Corp. announced some details of the project Friday. The $250 million facility will be built at one of two sites under consideration in Chippewa County with the help of a $15 million grant from the state.

The facility could have more than 50 jobs when it hits full production in 2012. Hundreds of jobs could be created in its forest-based supply chain.

Investors in the project include General Motors Corp. and Marathon Oil Corp.

The ethanol plant is part of the state's strategy to help reduce dependence on oil.

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