Süd-Chemie is planning to build Germany's largest bioethanol plant with an investment of €28m ($36m).
The proposed plant will be constructed near Straubing and will produce up to 2,000 tonnes of bioethanol a year from agricultural waste such as cereal straw.
The company will adopt sunliquid technology to convert the plant residue into sugar constituents with the aid of enzymes generated using biotechnology.
It said hemicellulose can also be converted into ethanol, which can increase ethanol production by up to 50% compared to the conventional technology.
The plant is expected to be completed by 2011.
