In March, Pacific Rim Ethanol unveiled plans to build an ethanol plant capable of producing 40 million gallons a year from barley and wheat in Moses Lake in southeast Washington.

Ritzville Warehouse, a 1,100 member farmers' cooperative has agreed to invest $122 million in the new facility. An additional $15 million will likely be raised from stock offerings. Construction is expected to begin in late summer with ethanol production scheduled for 2001.

The plant location was selected because of its central location between Seattle, Spokane and Portland, its proximity to grain crops and access to inexpensive power. An estimated 60 percent of Washington's barley crop and 4 million bushels of wheat would be used in the plant every year. In addition to the alcohol- and industrial-grade ethanol, wheat gluten and high-grade animal feed would also be produced.

Currently, ethanol is used in gasoline in the Spokane area to reduce carbon monoxide pollution part of the year.