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US Sugar, Coskata to explore ethanol plant in Fla.

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CLEWISTON, Fla. (AP) _ U.S. Sugar Corp. will consider building an ethanol facility in the Everglades, a move that might help the nation’s largest producer of cane sugar stay in business.

U.S. Sugar and Illinois-based Coskata Inc. announced Monday the agreement to explore construction of the cellulosic ethanol facility in Clewiston. The plant would convert unused sugar cane material into ethanol.

If the proposal goes through, it could provide a new source of revenue for U.S. Sugar, which has entered a deal with the State of Florida to sell much of its land for Everglades conservation.

The proposed facility would convert cane leaves and other waste into fuel. It is expected to produce 100 million gallons per year, and would be the world’s largest second-generation ethanol facility.

“We are very excited to be formally negotiating with Coskata to deploy their industry leading conversion technology,” U.S. Sugar vice president Robert Coker said in a statement. “We see this technology as a perfect complement to our existing sugar mill, not to mention a win for the environment, the farming community and for our employees.”

U.S. Sugar said it will ask the Florida Energy Office to help fund early engineering on the project and will work with the U.S. Department of Agriculture.

Copyright 2008 The Associated Press.