Plans are on track to build a $250 million plant to make ethanol fuel from wood chips at Kinross, according to Boston-based Mascoma Corporation. The company hopes to break ground at Kinross by the end of this year, and plans to be fully operational by early 2012.

The plans are not affected by speculation that falling gasoline prices may cut demand for alternative fuels, company spokesperson Kate Casolaro told The St. Ignace News Thursday, February 19.

"We are looking at long term energy plans," she said, pointing out that gasoline prices do not affect the company's plans. "Everyone realizes that energy prices will continue to be volatile over the coming decades."

The plant will make automo- bile fuel from hardwood chips and grasses, rather than food products such as corn, which impact food markets.

The Kinross facility is expected to create 50 direct jobs, 150 construction jobs, and hundreds of spin-off jobs in forestry and transportation. It was announced in July 2008. The company will tap into convenient access to the Upper Peninsula's timber resources and $49.5 million in state and federal funding, announced in October 2008, to bring the project to the Upper Peninsula.