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Friday, 17 March 2006. 15:24 (AEDT)Friday, 17 March 2006. 14:24 (ACST)Friday, 17 March 2006. 14:24 (AEST)Friday, 17 March 2006. 15:24 (ACDT)Friday, 17 March 2006. 12:24 (AWST)

Site work will start by the end of next month on a $60 million ethanol distillery near Swan Hill north-west Victoria.

The plant, being built by Australian Ethanol, will use 300,000 tonnes a year of barley, corn, wheat and sorghum to produce ethanol.

Shares in Australian Ethanol were suspended earlier this week, and the company announced today it has raised $12.5 million in a share placement.

Australian Ethanol chief executive Peter Anderton says $9.5 million will be spent on stage one of the Swan Hill project.

"We'll be starting work, we'll be starting earthworks there, we'll be starting a lot of utilities and infrastructure works and getting on with the project," he said.

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