BUDAPEST, July 20 (Xinhua) -- The Swiss firm United Bio Fuels will operate a bioethanol plant in the southern Hungarian city of Mohacs, said local media on Thursday.

    The construction of the plant, which is designed to have a production capacity of 100,000 cubic meters and employ 80 personnel, is expected to be completed by the end of 2007, said Mohacs' mayor Jozsef Szako.

    The plant's construction is being carried out by Duna Fejlesztesi, a Hungary-Austria joint venture.

    Duna Fejlesztesi is also participating in building seven other bioethanol plants in Hungary.

    The Hungarian government is seeking to use up the country's huge grain surplus as biofuel within three years.

    Bioenergy, generated by agricultural products, was expected to provide for as much as 40 percent of Hungary's energy consumption in the near future, said an expert from the ruling Socialist Party. Enditem.