The governor of Pennsylvania has announced the first ethanol plant to be built in the state, as well as a cellulosic pilot plant.

Governor Edward Rendell made the announcement Thursday with representatives from BioEnergy International, LLC and Lukoil Americas, two important partners in the project. According to a news release from the governor’s office, the state is providing $17.4 million in “state investments to support the $250 million project,” which includes a 108 million gallon per year corn-based ethanol plant and a pilot scale cellulose demonstration plant.

The plant will employ conventional corn-based technology and will be among the largest east of the Mississippi River, and one of the nation’s top 10, based on output. The smaller pilot-cellulose plant will use BioEnergy’s groundbreaking technology to produce fuels using locally available organic wastes, such as wood and agricultural residue.