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U.S. Department of Agriculture planned to announce the grant to MinnErgy this morning in Eyota.
Minnesota City cattle farmer Ron Scherbring and Winona businessman Chris Arnold announced plans in December 2006 to build a $100-plus million plant in the area. The proposed plant would produce 55 million gallons of corn-based fuel a year.
MinnErgy CEO Scherbring said Tuesday that plans are moving forward on the Eyota site. He expects to have permits in hand and begin construction in the spring.
Scherbring said the company will offer residents in Minnesota, Wisconsin and Iowa a chance to buy stock, pending approval from the Securities Exchange Commission.
Some Eyota residents expressed fears about possible pollution and increased traffic from the plant, which backers say could bring up to 40 jobs to the area.
Sixteen Minnesota plants produced about 550 million gallons of ethanol in 2006, according to the state Department of Agriculture. That was an increase of more than 30 percent from the previous year.
Production is expected to nearly double by 2008, according to ag department estimates.
