California-based Western Milling, and venture capital firm Khosla Ventures have announced the formation of Cilion, a company that will operate modular, standardized 55 million gallons per year ethanol plants. According to a release, the new company would use a variety of innovations to make plants that are cheaper and greener than standard corn-to-ethanol plants, substantially reducing the need for fossil fuels in ethanol production. Cilion plans to have 8 plant units in production by 2008 for a total of 440 million gallons per year capacity. The first three plants are expected to be in California.