British Sugar is building a �20m plant to produce 70m litres of green fuel at Wissington, Downham Market in Norfolk.

Baroness Gillian Shephard of Northwold will attend a ceremony before foundations are laid at the site.

Norfolk, Cambridgeshire and Suffolk farmers will grow the beet for the plant - which is designed to be operational in 2007.

British Sugar chief executive Mark Carr said government backing for "renewable" transport fuels was crucial to the firm going-ahead with the unit.

"This is the UK's first bioethanol production facility - the beginning of an exciting new industry," he said.

"It is a clear demonstration of our innovative approach to the changing business environment in which we operate."

Bioethanol is a biofuel - or green fuel - that can produce up to 70% fewer carbon emissions than petrol.