A federally-funded plant began producing ethanol from corn waste products on Sept. 3 in Emmetsburg, Iowa, as the nation's first cellulosic ethanol plant.

The plant is a joint venture between American biofuel maker POET and Dutch chemical company Royal DSM that's known as Project Liberty, reports The Hill.

The project received about $100 million in investments and research from the U.S. Department of Energy and could produce 25 million gallons of ethanol per year at full capacity. If that happens, the plant would reduce carbon dioxide emissions by 210,000 tons annually.