WASHINGTON (Bloomberg) ? Bermuda-registered Bunge Ltd., the world's biggest oilseed processor, and Southwest Iowa Renewable Energy LLC have agreed to build and operate a 110-million gallon per-year ethanol plant near Council Bluffs, Iowa.

Under the agreement, SIRE's farmer members will hold a majority of shares in the project, while Bunge will be the largest single shareholder, the two companies said.

SIRE, based in Council Bluffs, was formed in 2005 for the purpose of developing and operating the proposed plant, which is expected to be operational in early 2008.