EMMETSBURG A $14.75 million state grant was awarded Wednesday for the construction of a cellulosic ethanol plant near Emmetsburg.

State Senate President Jack Kibbie, D-Emmetsburg, said the new Iowa Power Fund Board awarded the grant to Poet Biorefining on an unanimous vote during its meeting in Mount Vernon.

''It's a huge endeavor and it's one of the first to come with cellulosic operation,'' he said.

Unlike traditional ethanol plants which use corn kernels, the Poet Biorefining facility would use corn cobs and stalks to make the environmentally friendly fuel.

Kibbie said the company expects to break ground next year and start production in 2011.

About 40 to 50 people will work there.

''The salaries will be very good,'' Kibbie said.

He estimated that the total cost of the plant will be about $300 million.

Including Wednesday's grant award, the state government has committed $20 million to the project. The Power Fund grant is the largest piece of that aid.

Kibbie said the federal government has committed $80 million in aid.

Poet Biorefining already has a conventional ethanol plant near Emmetsburg that makes 50 million gallons of fuel a year.

Company officials couldn't be reached for comment on the award Wednesday evening.

Contact Bill Shea at (515) 573-2141 or bshea@messengernews.net