An Illinois company is planning a mill Magnolia to manufacture wood pellets as an alternative fuel source.

Pellets are made out of compacted sawdust, wood chips or other wood material and look something like rabbit food.

Indeck Energy Services of Buffalo Grove, Illinois, is awaiting permits from the Mississippi Department of Environmental Quality before starting work on the site on U.S. Highway 51 in the Metro-Pike Industrial Park. The project is estimated at $10 to $12 million, and is expected to employ 15 to 20 people.

Officials say Indeck is seeking a permit that will allow it to manufacture 70,000 tons of pellets per year at the Magnolia plant.