CHICAGO –Illinois River Energy in Ogle County was awarded a $4 million grant to help build a new $120+ million ethanol production facility in northern Illinois. The new refinery will create 40 jobs for the Northern Stateline region, as well as 120 construction jobs.

The grant comes from the Renewable Fuels Development Program, which is administered through the state’s Department of Commerce and Economic Opportunity.

“By investing in ethanol and other renewable fuels, we are increasing our energy independence, creating jobs and helping to secure Illinois’ future,” said Governor Rod Blagojevich. “This new ethanol plant represents the next generation of ethanol production in Illinois – using less energy while producing less carbon emissions – and will be one of the cleanest and most efficient facilities in the country.”

The new facility will have a 50 million gallon per-year capacity and sit adjacent to the company’s existing 50 million gallon per year ethanol plant. The new facility will use approximately 18 million bushels of corn annually and will incorporate the latest energy conservation technologies and efficiencies to reduce emissions, energy consumption and ethanol production costs. Construction is expected to be complete by September 2009.

“IRE is committed to demonstrating the potential of these innovative technologies in our plant by creating a showcase facility, with the very best available operating practices and products, that will allow the industry to benefit from our adoption and learning,” said Rich Ruebe, CEO, Illinois River Energy LLC.

“Americans are sending $2 billion a day overseas for imported oil, so programs like Illinois’ Renewable Fuels Development Program represent an investment in our rural economy with immediate returns,” said Steve Ruh, chairman, Ethanol Committee, National Corn Growers Association and past president of the Illinois Corn Growers Association.

DCEO also supports ethanol production research through the National Corn to Ethanol Research Center (NCERC) at Southern Illinois University- Edwardsville. These research efforts will result in the commercialization of new technologies to enhance new and innovative technologies to increase production efficiency and reduce production costs. Eventually, through research and development, products manufactured from a bushel of corn will be able to substitute for most of the products currently produced from a barrel of oil.

For more information on Illinois River Energy visit http://www.illinoisriverenergy.com.