ATCHISON, KAS. — The board of directors at MGP Ingredients Inc. on June 10 approved a capital project designed to enhance alcohol production capabilities while providing environmental benefits at the company’s Atchison distillery operations. MGP Ingredients estimates the project will cost $7.4 million and expects it will be completed in September of 2011. The project will involve a new water cooling system to replace older equipment. The new system will be able to recycle water continuously, which will reduce water use and possibilities for waste throughout the alcohol production system, said Scott Phillips, vice-president of supply chain and operations. MGP Ingredients develops and produces grain-based starches, proteins and food grade alcohol products for the branded packaged goods industry.