Timemedia, Goldwater to build cellulosic ethanol factory in Bosnia

The energy ministry will provide full support to the project for the factory, which is to be located in Bosnia's northeastern region of Semberija, it said in a statement following the signing ceremony on Monday.

"We are committed to pursuing a policy that offers numerous incentives to investors and will support the implementation of this important project that encourages investments in the energy sector and the development of economic entities in the Serb Republic," energy minister Petar Djokic is quoted saying.

Cellulosic ethanol is produced from vegetation unsuitable for human consumption such as wood, grass and algae and is used as biofuel.

The Serb Republic is one of two entities that make up Bosnia and Herzegovina. The other is the Federation.