SAULT STE. MARIE – Construction of corn-fed ethanol plants were all the rage a few years ago in the drive to diversify the nation’s energy producing capabilities.

Now comes cellulosic ethanol, which is created through a process that utilizes enzyme-secreting micro-organisms to convert hardwood pulp material into ethanol. And if all goes according to (an optimistic) plan, Michigan will be the home to the first cellulosic ethanol plant in the nation.

The plan was laid out Aug. 4 at the 49^th convention of the Michigan Building and Construction Trades Council. According to Stephen Hicks, president and CEO of J.M. Longyear LLC, a $300 million plant – “the first of its kind” – is proposed to be constructed on an old airbase in the Upper Peninsula’s Kinross Twp., about 15 miles from the Soo. He said Michigan is the fifth largest forested state in the nation, and the proposed plant site would have plenty of potential fuel, as it’s surrounded by 8.3 million acres of timberland.

The land, he said, has access to: rail and highways, a deepwater port, natural gas and power lines, as well as a skilled workforce. “You can’t find that combination in many places in the world,” Hicks told delegates. “It’s a great site.”

Design and engineering on the project are complete, Hicks said. The owner has filed a Department of Environmental Quality permit with the state. The plant, he said, will give off a chocolate smell when it’s under operation. He admitted that the project faces “a challenging capital market” –the owner has talked to 165 banks in an effort to secure credit. In a “best case” scenario, he said, the deal would be finalized next year and construction would start in 2012.

Hicks said the owner is already in talks with local unions about the use of a project labor agreement during the work. Construction would employ about 150, and up to 50 workers would be employed full time at the plant. Perhaps 500 additional spin-off jobs would be created in the logging, transportation and manufacturing sectors.

The plan is being put forth by partners JM Longyear LLC (25 percent) and Mascoma Corp. (75 percent), under the name Frontier Renewable Energies.

How does the technology work? Get out your science textbooks. Theirs is a patented technology called Consolidated Bio-Processing (CPB), which uses natural ethanol fermenting and cellulose-using microbes to rapidly break down components of cellulosic biomass, converting a range of sugars to ethanol.

The process would at first use hardwood, Hicks said, and then later softwood grasses could be used to make the fuel.

Mascoma announced an improvement in the process this spring.

According to information about Mascoma’s process in the May 11 publication CheckBioTech: “This is a true breakthrough that takes us much, much closer to billions of gallons of low cost cellulosic biofuels,” said Michigan State University’s Dr. Bruce Dale, who is also Editor of the journal Biofuels, Bioproducts and Biorefineries. “Many had thought that CBP was years or even decades away, but the future just arrived. Mascoma has permanently changed the biofuels landscape from here on.”

The publication reported that in February 2009, Mascoma announced that its pilot facility in Rome, NY had begun producing cellulosic ethanol. The plant has the flexibility to run on a variety of feedstock, including wood chips, tall grass and corn stalks. The small scale facility will provide information for the efficient operation of the Kinross plant.

The state of Michigan kicked in $23.5 million last October to help build the plant.

“Michigan is proud to partner with Mascoma as a part of our commitment to lead the nation in alternative energy production,” said Gov. Jennifer Granholm. “This company, and their partners, will create jobs in Michigan as they develop the next generation of cellulosic ethanol that will reduce our dependence on foreign oil and make fuel more affordable for our families.”

Said Bruce Jamerson, chairman and CEO of Mascoma Corp.: “This funding will allow us to accelerate commercial production of low cost, low carbon fuel that will reduce greenhouse gas emissions and promote energy independence.”