Hereford Announces New Ethanol Plant Hereford EDC  |  21-Dec-2006 The state has issued an air permit for Panda Energy Group to build a 100-million-gallon biomass-fueled ethanol plant east of Hereford. Dallas-based Panda has announced that the Texas Commission on Environmental Quality had approved the permit for the plant, which will be built on land near the municipal wastewater treatment plant. The ethanol plant expects to use about 600,000 gallons of treated wastewater daily. Panda said the Hereford plant is the first ethanol project in the state to receive an air permit under new review procedures. The company has agreements with 18 area feed yards that will supply manure for fueling the plant. It is negotiating with the city to purchase water and with Xcel Energy for electricity. When operational, the Hereford plant will produce enough fuel to replace 2.4 million barrels of gasoline each year, Panda officials said.