The federal government has awarded nearly $18 million to build a refinery in Alpena that will produce biofuels.
The U.S. Energy Department on Friday announced the grant to American Process Inc. It's among newly chosen projects in 15 states designed to accelerate technologies for commercial-scale development of a U.S. biomass industry.
The biorefinery will convert processed wood from Decorate Panels International, a hardboard manufacturing plant in Alpena, to cellulosic ethanol and potassium acetate. The project will go online in 2011.
Gov. Jennifer Granholm says the refinery will bring 160 jobs to the Alpena area and strengthen Michigan's effort to be a leader in biofuels production.