Colorado-based Penford Corporation has announced plans to invest $42 million for approximately 40 million gallons of ethanol production capacity at its Cedar Rapids, Iowa facility. According to a news release, the facility is expected to be producing ethanol by the end of 2007.

“Penford’s entry into ethanol will create value for our shareholders from more complete utilization of existing facilities and resources,” said Tom Malkoski, Penford Corporation President and Chief Executive Officer. “We will be able to process more corn by utilizing existing assets more intensively and plan to convert a portion of our current production to ethanol use. This initiative also provides an attractive entry into this growing market through a lower capital investment and shorter time to market compared with many ethanol projects.”