Summary of XETHANOL CORP - Yahoo! Finance

Item 8.01 Other Events.

On December 18, 2007, Xethanol Corporation ("Xethanol"), the registrant, previously announced in a press release that its subsidiary Southeast Biofuels LLC filed a grant application with the Florida Department of Agriculture and Consumer Services to expand the company's work on converting waste to energy, using citrus waste as the raw material and converting it into ethanol. On January 22, 2008, the Florida Department of Agriculture and Consumer Services approved a $500,000 grant to Southeast Biofuels. A copy of the press release issued by Xethanol on January 25, 2008 announcing the approval of a $500,000 grant to Southeast Biofuels is attached to this Current Report on Form 8-K as Exhibit 99.1.

Xethanol intends to build a demonstration plant for converting citrus peel waste into ethanol. Xethanol is negotiating an agreement to locate the plant at an existing citrus facility in Florida owned by one of the largest citrus processors in the state. The planned cost for the two-year build-out of the demonstration plant is approximately $5,900,000.

The Xethanol citrus-to-ethanol project began with a Cooperative Research and Development Agreement with the U.S. Department of Agriculture's Agricultural Research Service (ARS) in 2004 at the USDA-ARS Citrus and Subtropical Products Laboratory in Winter Haven, Florida. The agreement is under the supervision of research chemist Dr. Bill Widmer of the USDA-ARS Citrus Lab. The results of citrus research done by the USDA were transferred to Southeast Biofuels LLC, by Renewable Spirits of Delray Beach, Florida. Renewable Spirits owns 20% of Southeast Biofuels.

All statements in this Current Report on Form 8-K that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Xethanol's current expectations and include known and unknown risks, uncertainties and other factors, many of which the company is unable to predict or control, that may cause the company's actual results or performance to differ materially from any future results or performance expressed or implied by such forward-looking statements. These statements involve risks and uncertainties, including risks and uncertainties associated with building a demonstration plant for converting citrus peel waste into ethanol, such as construction costs and delays and the implementation of new technology on a larger scale in a pilot plant. These risks and uncertainties are in addition to other factors detailed from time to time in the company's filings with the SEC, including the section entitled "Risk Factors" in its annual report on Form 10-KSB for the year ended December 31, 2006, as amended.