KANSAS CITY -- Kansas City-based Alternative Energy Sources Inc. today announced that the company is being awarded grant money totaling $994,500 that will push forward the company's plans to build its proposed 110-million-gallon ethanol plants in Kankakee, Ill., and near Ogden, Iowa.

In Illinois the Kankakee County Board recently voted to approve an $850,000 grant for road improvements for the Kankakee Regional Industrial Park, the proposed site for the plant AENS plans to have in operation by fall 2008. "We're especially pleased with the board's vote because it clearly shows the county's confidence in our ability to develop our plant in Kankakee," stated Lee Blank, AENS's executive vice president.

Added Joe Franco, chairman of Kankakee County Economic Development Association: "This was not just another ethanol plant. Their technology was outstanding, and you could see this was something special." He was quoted in a Dec. 13 article about the project printed in The Daily Journal of Kankakee.

In Iowa the Department of Transportation has approved a total award of $239,000, including a grant of $144,500 and a loan of $94,500, both to be used for Union Pacific railroad infrastructure. "This is especially significant because 11 bio-energy projects were vying for grants, and ours is one of only two that were awarded," said Mark Beemer, AENS president and CEO. "Getting the grant is also noteworthy because it puts the stamp of the state of Iowa on our project." Both Beemer and Blank are former executives of Archer Daniels Midland, the nation's No. 1 ethanol producer.

AENS plans to start construction on both plants by late spring and have them in operation by fall 2008.

About Alternative Energy Sources Inc.: The company is developing "greenfield" sites, including constructing, owning and operating fuel-grade ethanol plants. The management team has extensive experience in agricultural processing, grain trading, railroad negotiations, logistical economics, construction, acquisitions and operating as a public company. The founders have extensive management and leadership experience, including serving in executive management positions with agri-processing giant Archer Daniels Midland Co., the largest producer of ethanol. For more information go to http://www.aensi.com.