Alternative Energy Sources, Inc. (see previous post) has announced plans to build the first cellulosic ethanol facility in the U.S. with the acquisiting of Flex Fuels USA Inc. of Huntsville, Alabama.

According to a news release, Flex Fuels USA has developed proprietary ethanol production technology methods of producing cellulosic ethanol made from biomass and other types of waste.

Kansas City, Mo.-based Alternative Energy Sources has signed a letter of intent to acquire all the company’s outstanding capital stock and expects to sign a merger agreement by Sept. 15.