AUGUSTA, GA-New York City-based biotechnology company Xethanol Corp. is expecting to close in 30 days on the acquisition of a 40-acre pharmaceutical manufacturing complex. The company also is planning to retrofit existing facilities to create a cellulosic ethanol plant that produces 50 million gallons per year.

Xethanol signed a letter of intent in May to purchase the facility from New York City-based pharmaceutical company Pfizer Inc. Its due diligence has been completed on the complex: an 89,100-sf manufacturing plant, 25,000-sf warehouse, 7,300-sf laboratory area and 16,000 sf of offices and conference rooms. Xethanol plans to produce ethanol from cellulosic and other biomass waste streams generated by industrial producers in the surrounding areas.

A Xethanol company spokeswoman tells GlobeSt.com the company originally had planned to retrofit the facility to create a cellulosic ethanol plant that produces 35 million gallons per year, but revised plans after conducting its due diligence. The plan is to begin producing ethanol in mid-2007.

India-based PRAJ Technology will provide detailed engineering services, process design and licensing as well as the supply of vital sections of the process plant. PRAJ also will provide the same services for Xethanol's new 35-million-gallon per year facility that will be constructed in Blairstown, IA. The Facility Group of Atlanta has been retained as engineer, procurement and construction contractor for the new plant.

"By combining Xethanol's proprietary technologies with those of PRAJ, we believe that we will have achieved our goal of being a low-cost producer of fuel ethanol from cellulosic materials," Xethanol chairman and CEO Christopher d'Arnaud-Taylor says in a press release.

When the deal was announced, Augusta's Mayor Deke Copenhaver labeled it "a win-win situation for all companies." Xethanol's acquisition and retooling costs aren't available, but other similar-size ethanol projects in the US are costing more than $80 million to develop.