Michigan's second biodiesel plant has been approved, and construction will begin in Bangor before the end of the year. Michigan Biodiesel LLC's new plant will be part of a 12-acre Agricultural Processing Renaissance Zone.

Michigan BioDiesel LLC is a partnership of 50-plus independent investors who raised funds to build the plant for production of fuel from soybean oil. The company will produce the biodiesel fuel on site for sale to petroleum distributors for mixing with diesel fuel.

The Agricultural Processing Renaissance Zone program, administered by the Michigan Economic Development Corporation, was established to encourage agricultural processor expansions and attract new processors to the state. Since its inception in 2000, a total of 19 agricultural processing zones have been established representing private investment of more than $300 million in these zones.

"Michigan is the state that put the nation on wheels and we will be the state that makes the nation independent of foreign oil by investing in alternative energy growth and development," Governor Jennifer Granholm said. "This plant in Bangor is an important step in reaching our goal of becoming the nation's alternative energy hub, strengthening our economy, and creating jobs for Michigan citizens."

The only other biodiesel facility in the state is located in the Upper Peninsula community of Gladstone.

Michigan's second biodiesel plant has been approved, and construction will begin in Bangor before the end of the year. Michigan Biodiesel LLC's new plant will be part of a 12-acre Agricultural Processing Renaissance Zone.