Next generation ethanol company Coskata on Wednesday announced an agreement with ICM Inc. to design and construct a commercial ethanol plant using Coskata’s biological fermentation technology.

Last month, the young company made a splash at the North American international Auto Show in Detroit where a strategic partnership with General Motors was announced.

Bill Roe, president and CEO of Coskata said, “Coskata and ICM will speed the commercialization of a process that will convert biomass into advanced biofuels from a number of renewable materials, at a production cost of less than $1 a gallon.”

According to Dave Vander Griend, president and CEO of ICM Coskata’s thermal biomass conversion process offers promising technology.

“It has always been ICM’s mission to help sustain agriculture through innovation,” Vander Griend said. “Coskata’s production process makes them a valuable ally as we continue to pursue advancements in renewable technology towards the creation of advanced and cellulosic biofuels as directed by the recent Energy Bill.”

The location of the first Coskata plant will be announced at a later date, but officials say they expect the facility to open in 2010.