Energy-Arizona^1.4

http://www.tcpalm.com/news/2007/aug/23/university-have-ethanol-research-plant-built-palm-/

5:19 p.m., August 23, 2007

The University of Florida has selected Florida Crystals Corp.'s Okeelanta facility in Palm Beach County as the site to build a cellulosic ethanol research and demonstration plant.

The university selection committee chose Florida Crystals in a unanimous vote Tuesday from a list of bidders to construct a cellulosic ethanol plant that will produce 1 million to 2 million gallons of ethanol a year.

The plant is a $20 million project financed through a state grant designed to encourage the development of alternative energy resources.

Technology developed by UF professors will be used to convert sugarcane bagasse and other biomass into ethanol, a clean energy alternative that protects the quality of our water and air.

"This partnership is an important step in developing reliable, clean energy resources for Florida," Gaston Cantens, vice president of Corporate Relations for Florida Crystals, stated in a news release. "We are committed to the development of renewable sources of energy. We are excited about this collaborative project with UF and hopeful that it will help our state move forward in expanding renewable energy alternatives and reduce our dependence on foreign oil."

Florida Crystals partnered with Florida International University earlier this year to do additional cellulosic ethanol research.

A month ago, FPL Energy, a subsidiary of FPL Group (NYSE: FPL), announced their own plans to develop a citrus-peel-to-ethanol plant, which is expected to produce 4 million gallons of ethanol a year.

FPL has signed a letter of intent with Boca Raton-based Citrus Energy on the project, which is expected to go up in Hendry County, on the southwest side of Lake Okeechobee.

FPL Energy envisions the ethanol industry in Florida eventually producing more than 60 million gallons of fuel a year, which could replace about 1 percent of Florida's annual gasoline consumption.