The company has been operating a prototype plant in New Zealand capable of generating 16, 000 gallons of carbon monoxide ethanol a year.

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In a statement, Michaud said AVEtec successfully tested a 13-foot-wide power plant prototype in 2009 and that the startup would use the Breakout Labs grant to build a bigger version in collaboration with Lambton College in Sarnia, Ontario.

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The prototype system is run by a set of computer codes, rather than plant personnel.

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