A cellulosic ethanol company funded by California-based Khosla Ventures is holding a groundbreaking this week for its first planned facility in Georgia.

The Tuesday event at Range Fuels in Soperton, Georgia will include remarks from Georgia Gov. Sonny Perdue, Range Fuels CEO Mitch Mandich and Khosla Ventures founder Vinod Khosla.

The facility has a goal of producing 100 million gallons per year of cellulosic ethanol from wood residues and wood-based energy crops, with a first phase of producing 20 million gallons annually sometime in 2008. Range Fuels is receiving a $76 million grant from the US Department of Energy to help fund the project.