By Christina B. Farnsworth. Michigan may not have oil, but it does have corn and lots of it. Construction has begun on a $50 million plant in Caro, Mich., which will process corn into ethanol. The plant will be capable of turning 15 million bushels of corn into 40 million gallons of the fuel annually. Michigan Ethanol LLC received a $5 million state startup grant. The plant should be producing its first ethanol by fall 2002.