Kirin Brewery Company of Japan reportedly plans to begin experimental production of ethanol using the residue of malt used to make beer as feedstock.

According to an Autochannel.com story, an estimated 300 million yen ($2.5 million) will be invested to construct a pilot plant which will have the capacity to produce 15 kilolitres of ethanol a year.

Production is expected to start later this year.

Kirin, together with Mitsubishi of Japan, is a member of a consortium taking part in a government-backed project to build an ethanol plant in the northern island of Hokkaido.