DALLAS -- Panda Ethanol Inc. intends to build a 100-million-gallon-per-year ethanol plant in Lincoln County, Nebraska.

When finished, the facility will refine approximately 38 million bushels of corn annually. The ethanol produced by the Lincoln plant could displace approximately 2.6 million barrels of imported oil a year.

The Lincoln facility is the fifth 100 mgy ethanol project announced by Panda, and the company's first to be located in the state of Nebraska. The plant will be built on a 400-acre site three miles east of the village of Wallace and will be fueled by natural gas.

Lisa Dominisse, executive director of the Development Corporation of North Platte, said, "This plant will definitely enhance the region's economy. It will create an estimated 48 skilled jobs and 133 support jobs. It will also inject more than $200 million of additional goods and services into the area's economy over the next 10 years. This includes $92 million of value added to area agricultural commodities and other materials that will be purchased for Panda's ethanol facility."

Construction of the Lincoln County ethanol plant will take about 18 months. The completion date is dependent upon financing, regulatory approvals and other conditions. Panda has submitted its request for an air permit with the Nebraska Department of Environmental Quality.

Panda Ethanol previously announced that it successfully completed the debt and equity financing on its 100 mgy gallon ethanol plant in Hereford, Texas. The company has begun facility construction on the 380-acre site and anticipates ethanol production to start in the second half of 2007.

The company also announced that it has entered into a merger agreement with Cirracor, a publicly held corporation which trades over the counter. The merger is currently expected to become effective in the fourth quarter of 2006, subject to the satisfaction of certain requirements, and the combined entity will operate under the name of Panda Ethanol Inc.

Panda Ethanol is headquartered in Dallas. The company is currently developing fuel ethanol refineries and biomass facilities in the United States. Panda Ethanol's largest single shareholder is Panda Energy International Inc.

SOURCE: Panda Ethanol Inc. via PR Newswire.