Coskata, US Sugar in final negotiations over $400 million, 100 Mgy cellulosic ethanol plqnt in Florida

In Florida, officials from Coskata confirmed that it is negotiating with US Sugar to construct a commercial-scale cellulosic ethanol plant on the US Sugar property in Clewiston, while an unconfirmed source reported that Coskata has indicated that the process was more advanced and that Coskata would in fact proceed with a 100 Mgy Clewiston-based facility using sugar cane bagasse as cellulosic feedstock.

The US Sugar-Coskata deal was aided by a corresponding agreement between US Sugar and the State of Florida whereby the sugar producer would sell 181,000 acres of its land to Florida for $1.35 billion for an Everglades restoration project. The Clewiston plant, in turn, will cost a projected $400 to $500 million, and Coskata has projected a $1 per gallon marginal cost of ethanol production.

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