Kings of ethanol and new GM buddy, Coskata, has announced it has broken ground on an new cellulosic ethanol plant in Pennsylvania that could be churning out the alternative fuel as early as next year. Coskata claims it can produce the two carbon alcohol at a cost of $1 per gallon so unless they aren't interested in getting to step three, expect pricing on the more renewable fuel to be higher than that. Regardless, it will likely beat the hell out of that $5.40 gallon gas bullshit going on in California.

The plant location in question is in Madison, PA, and when complete will be capable of producing 40,000 gallons of ethanol annually. Consider this as just the start for Coskata, as they have even bigger plants planned for 2011. Color us unimpressed at this point, as 40,000 gallons is about enough to get a flexfuel Suburban to the Trader Joe's and back. [CNET]