By GOSIA WOZNIACKAFIVE POINTS, Calif. (AP) â¿¿ Amid the vast almond orchards and grape fields that surround Five Points in California's Central Valley, a once-dominant crop that has nearly disappeared from the state's farms is making a comeback: sugar beets. But these beets won't be processed into sugar. A dozen farmers, supported by university experts and a $5 million state grant, are set to start construction of a Fresno County demonstration plant that will convert the beets into ethanol. If the demo project in Five Points succeeds, the farmers will build the nation's first commercial-scale bio-refinery in nearby Mendota to turn beets into biofuel. Europe already has more than a dozen such plants, but most ethanol in the U.S. is made from corn. California energy officials say the beet plant is an example of expanding state investment in biofuel production and an innovative way to achieve the state's goal of increasing alternative fuel use over the next decade. "We're trying to reduce greenhouse gas emissions and to shift our transportation fuels to a lower carbon content," said Robert Weisenmiller, chair of the California Energy Commission, which awarded the grant. "The beets have the potential to provide that." The farmers say so-called energy beets can deliver ethanol yields more than twice those of corn per acre. That's because beets have a higher sugar content per ton than corn. And, the farmers say, the bio-refinery would bring jobs and investment to an area that's dealing with water pumping restrictions and overly salty soils. "This project is about rural development. It's about bringing a better tax base to this area and bringing jobs for the people," said John Diener, a grower who farms about 5,000 acres of diverse crops in Five Points and whose ranch will house the demonstration plant. Driven by a federal mandate to reduce dependence on foreign oil, America's ethanol industry has boomed over the past decade. Plants in 28 states now produce more than 13 billion gallons of ethanol each year, according to Geoff Cooper, vice president for research and analysis for the Renewable Fuels Association. Today, nearly all the gasoline sold in the U.S. contains the biofuel, generally at the 10 percent level.