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      EXCHANGE ACT OF 1934</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      report (Date of earliest event reported):</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>
      April
      7, 2006</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Xethanol
      Corporation
</strong></font>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      Name of Registrant as Specified in Its Charter)</font></div>
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      Other Jurisdiction of Incorporation)</font></div>
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                Avenue of the Americas</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
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      723-4000
</strong></font>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant&#8217;s
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      Name or Former Address, if Changed Since Last Report) </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>see
      </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
      Instruction A.2. below): </font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)</font></div>
            </td>
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    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

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            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font></div>
            </td>
            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
            <td align="justify" valign="middle" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))</font></div>
            </td>
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    <div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font></div>
            </td>
            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
            <td align="left" valign="middle" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))</font></div>
            </td>
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      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
      3 - SECURITES AND TRADING MARKETS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      3.02. Unregistered Sales of Equity Securities</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Sales
      to Crestview Capital Master, Inc. and TOIBB Investment, LLC.</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      14, 2006, Crestview Capital Master, LLC (&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Crestview</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      and
      TOIBB Investment, LLC (&#8220;TOIBB&#8221;) exercised options to acquire 350,000 shares and
      150,000 sharesrespectivelyof the $.001 par value common stock &#8220;Common Stock&#8221;) of
      Xethanol Corporation by exercising the Put Options that were granted to them
      in
      the Investment Agreement among Crestview, TOIBB, Xethanol and H2Diesel, Inc.
      that was reported on Xethanol&#8217;s Current Report on Form 8-K filed with the
      Securities and Exchange Commission on April 20, 2006. That Investment Agreement
      is attached as Exhibit 1.1 to Xethanol&#8217;s April 20, 2006 Current Report on Form
      8-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      the securities specified in the preceding subparagraph 1(a) were sold in
      exchange for interests in H2Diesel that were acquired by Crestview and TOIBB
      pursuant to the Investment Agreement. The interest exchanged represents 25%
      of
      the outstanding equity interests in H2Diesel. No commissions were paid or
      payable with respect to such sales</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exemption
      from registration of the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">securities
      specified in the preceding subparagraph (a) is </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">claimed
      under Section 4(2) of the Securities Act of 1933, as amended (the &#8220;Act&#8221;) and
      Rule 506 promulgated thereunder. Exemption is claimed based, among other things,
      upon the representations made by each of Crestview and TOIBB in the Investment
      Agreement that include, among other things, a representation from each of them
      that it is an Accredited Investor within the meaning of Regulation D promulgated
      under the Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Sales
      to Jeffrey Peterson.</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 44.2pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      17, 2006, Jeffrey Peterson exercised a warrant issued to him by Xethanol on
      August 16, 2004. Pursuant to the exercise of that warrant, he purchased 44,140
      shares of Xethanol Common Stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 44.2pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      the securities specified in the preceding subparagraph 2(a) were sold for cash
      in the amount of $110,350. No commissions were paid or payable with respect
      to
      such sales</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exemption
      from registration of the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">securities
      specified in the preceding subparagraph (a) is </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">claimed
      under Section 4(2) of the Securities Act of 1933, as amended (the &#8220;Act&#8221;) and
      Rule 506 promulgated thereunder. Exemption is claimed based, among other things,
      upon representations made by Mr. Peterson that include, among other things,
      a
      representation that he is an Accredited Investor within the meaning of
      Regulation D promulgated under the Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Issuance
      of Shares and Warrants upon Exercise of Conversion Right by Lucas Energy Total
      Return Master Fund, LTD</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      21, 2006, Lucas Energy Total Return Master Fund, LTD (&#8220;Lucas Fund&#8221;) converted
      certain Senior Secured Royalty Income Notes in the aggregate principal amount
      of
      $5,000,000 issued to it by Xethanol (the &#8220;Fund Notes&#8221;). In connection with such
      conversion, Xethanol issued to Lucas Fund 1,250,000 shares of Common Stock
      and a
      three-year warrant (the &#8220;Fund Warrant&#8221;) to purchase up to 205,800 shares of
      Common Stock at a purchase price of $12.50 per share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      the securities specified in the preceding subparagraph 3(a) were issued in
      exchange for conversion of the Fund Notes. Xethanol did not receive any cash
      in
      that transaction. No commissions were paid or payable with respect to that
      transaction</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exemption
      from registration of the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">securities
      specified in the preceding subparagraph (a) is </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">claimed
      under Section 4(2) of the Securities Act of 1933, as amended (the &#8220;Act&#8221;) and
      Rule 506 promulgated thereunder. Exemption is claimed based, among other things,
      upon representations made by Lucas Fund that include, among other things, a
      representation that it is an Accredited Investor within the meaning of
      Regulation D promulgated under the Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Fund
      Warrant is exercisable until April 22, 2009 to purchase shares up to 205,800
      shares of Common Stock at a purchase price of $12.50 per share. The Fund Warrant
      is attached to this Current Report on Form 8-K as Exhibit 3.1.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Issuance
      of Shares and Warrants upon Exercise of Conversion Right by Lucas Energy Total
      Return Partners, LLC</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      21, 2006, Lucas Energy Total Return Partners, LTD (&#8220;Lucas Partners&#8221;) converted
      certain Senior Secured Royalty Income Notes in the aggregate principal amount
      of
      $1,60,000 issued to it by Xethanol (the &#8220;Partners Notes&#8221;). In connection with
      such conversion, Xethanol issued to Lucas Partners 400,000 shares of Common
      Stock and a three-year warrant (the &#8220;Partners Warrant&#8221;) to purchase 124,200
      shares of Common Stock at a purchase price of $12.50 per share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      the securities specified in the preceding subparagraph 3(a) were issued in
      exchange for conversion of the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Partners</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Notes.
      Xethanol did not receive any cash in that transaction. No commissions were
      paid
      or payable with respect to that transaction</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exemption
      from registration of the securities specified in the preceding subparagraph
      (a)
      is claimed under Section 4(2) of the Securities Act of 1933, as amended (the
      &#8220;Act&#8221;) and Rule 506 promulgated thereunder. Exemption is claimed based, among
      other things, upon representations made by Lucas Partners that include, among
      other things, a representation that it is an Accredited Investor within the
      meaning of Regulation D promulgated under the Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Partners Warrant is exercisable until April 22, 2009 to purchase shares up
      to
      124,200 shares of Common Stock at a purchase price of $12.50 per share of Common
      Stock. The Partners Warrant is attached to this Current Report on Form 8-K
      as
      Exhibit 3.2.</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Sales
      to Fusion Capital Fund II, LLC.</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      7, 10, 11, 12, 13, 17, 18 and 20, 2006, Xethanol exercised its right to require
      Fusion Capital Fund II, LLC (&#8220;Fusion&#8221;) to purchase 934,763 shares of Common
      Stock for an aggregate purchase price of $5,748,005.99, pursuant to a Stock
      Purchase Agreement between Fusion and Xethanol dated October 18, 2005. A copy
      of
      that Stock Purchase Agreement is attached as Exhibit 10.1 to Xethanol&#8217;s Current
      Report on Form 8-K filed with the Securities and Exchange Commission on October
      19, 2005. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      the securities specified in the preceding subparagraph 5(a) were sold for cash.
      No commissions were paid or payable with respect to such sales.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exemption
      from registration of the securities specified in the preceding subparagraph
      (a)
      is claimed under Section 4(2) of the Securities Act of 1933, as amended (the
      &#8220;Act&#8221;) and Rule 506 promulgated thereunder. Exemption is claimed based, among
      other things, upon the representations made by Fusion in the Stock Purchase
      Agreement that include, among other things, a representation that it is an
      Accredited Investor within the meaning of Regulation D promulgated under the
      Act.</font></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25">&#160;</div>
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        </div>
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
      9 - FINANCIAL STATEMENTS AND EXHIBITS </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      9.01. Exhibits</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
      is the Index of Exhibits furnished in accordance with Item 601 of Regulation
      S-K, filed as part of this Current Report on Form 8-K or incorporated by
      reference herewith:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fund
      Warrant dated April 21, 2006 issued to Lucas Energy Total Return Master Fund
      by
      Xethanol Corporation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.2</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Partners
      Warrant dated April 21, 2006 issued to Lucas Energy Total Return Partners,
      LTD
      by Xethanol Corporation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 54pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities and Exchange Act of 1934, the Registrant
      has duly caused this report to be signed on its behalf by the undersigned
      hereunto duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Xethanol
              Corporation</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:
              April 26, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Christopher
              d&#8217;Arnaud-Taylor</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
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            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Christopher
              d&#8217;Arnaud-Taylor</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chairman,
                President and Chief Executive Officer </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(principal
                executive officer)</font></div>
            </td>
          </tr>

      </table></div>
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{"company-data": {"conformed-name": "XETHANOL CORP", "cik": "0001145061", "assigned-sic": "3250", "irs-number": "841169517", "state-of-incorporation": "CO", "fiscal-year-end": "0205"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-50154", "film-number": "06780590"}, "business-address": {"street1": "1185 AVENUE OF THE AMERICAS,", "street2": "20TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10036", "phone": "6467234000"}, "mail-address": {"street1": "1185 AVENUE OF THE AMERICAS,", "street2": "20TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10036"}, "former-company": {"former-conformed-name": "ZEN POTTERY EQUIPMENT INC", "date-changed": "20010717"}}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      DC 20549
FORM
      8-K
CURRENT
      REPORT PURSUANT
TO
      SECTION 13 OR 15(D) OF THE
SECURITIES
      EXCHANGE ACT OF 1934
Date
      of
      report (Date of earliest event reported):
April
      7, 2006
Xethanol
      Corporation
(Exact
      Name of Registrant as Specified in Its Charter)
Delaware
(State
      or
      Other Jurisdiction of Incorporation)
000-50154
84-1169517
(Commission
                File Number)
(IRS
                Employer Identification No.)
1185
                Avenue of the Americas
New
                York, New York
10036
(Address
                of Principal Executive Offices)
(Zip
                Code)
(646)
      723-4000
(Registrant's
      Telephone Number, Including Area Code)
(Former
      Name or Former Address, if Changed Since Last Report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (
see
General
      Instruction A.2. below):
o
Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)
o
Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)
o
Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))
o
Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))
SECTION
      3 - SECURITES AND TRADING MARKETS
ITEM
      3.02. Unregistered Sales of Equity Securities
1.
Sales
      to Crestview Capital Master, Inc. and TOIBB Investment, LLC.
(a)
On
      April
      14, 2006, Crestview Capital Master, LLC ("
Crestview
")
      and
      TOIBB Investment, LLC ("TOIBB") exercised options to acquire 350,000 shares and
      150,000 sharesrespectivelyof the $.001 par value common stock "Common Stock") of
      Xethanol Corporation by exercising the Put Options that were granted to them
      in
      the Investment Agreement among Crestview, TOIBB, Xethanol and H2Diesel, Inc.
      that was reported on Xethanol's Current Report on Form 8-K filed with the
      Securities and Exchange Commission on April 20, 2006. That Investment Agreement
      is attached as Exhibit 1.1 to Xethanol's April 20, 2006 Current Report on Form
      8-K.
(b)
All
      of
      the securities specified in the preceding subparagraph 1(a) were sold in
      exchange for interests in H2Diesel that were acquired by Crestview and TOIBB
      pursuant to the Investment Agreement. The interest exchanged represents 25%
      of
      the outstanding equity interests in H2Diesel. No commissions were paid or
      payable with respect to such sales
.
(c)
Exemption
      from registration of the
securities
      specified in the preceding subparagraph (a) is
claimed
      under Section 4(2) of the Securities Act of 1933, as amended (the "Act") and
      Rule 506 promulgated thereunder. Exemption is claimed based, among other things,
      upon the representations made by each of Crestview and TOIBB in the Investment
      Agreement that include, among other things, a representation from each of them
      that it is an Accredited Investor within the meaning of Regulation D promulgated
      under the Act.
2.
Sales
      to Jeffrey Peterson.
(a)
On
      April
      17, 2006, Jeffrey Peterson exercised a warrant issued to him by Xethanol on
      August 16, 2004. Pursuant to the exercise of that warrant, he purchased 44,140
      shares of Xethanol Common Stock.
(b)
All
      of
      the securities specified in the preceding subparagraph 2(a) were sold for cash
      in the amount of $110,350. No commissions were paid or payable with respect
      to
      such sales
.
(c)
Exemption
      from registration of the
securities
      specified in the preceding subparagraph (a) is
claimed
      under Section 4(2) of the Securities Act of 1933, as amended (the "Act") and
      Rule 506 promulgated thereunder. Exemption is claimed based, among other things,
      upon representations made by Mr. Peterson that include, among other things,
      a
      representation that he is an Accredited Investor within the meaning of
      Regulation D promulgated under the Act.
3.
Issuance
      of Shares and Warrants upon Exercise of Conversion Right by Lucas Energy Total
      Return Master Fund, LTD
.
(a)
On
      April
      21, 2006, Lucas Energy Total Return Master Fund, LTD ("Lucas Fund") converted
      certain Senior Secured Royalty Income Notes in the aggregate principal amount
      of
      $5,000,000 issued to it by Xethanol (the "Fund Notes"). In connection with such
      conversion, Xethanol issued to Lucas Fund 1,250,000 shares of Common Stock
      and a
      three-year warrant (the "Fund Warrant") to purchase up to 205,800 shares of
      Common Stock at a purchase price of $12.50 per share.
(b)
All
      of
      the securities specified in the preceding subparagraph 3(a) were issued in
      exchange for conversion of the Fund Notes. Xethanol did not receive any cash
      in
      that transaction. No commissions were paid or payable with respect to that
      transaction
.
(c)
Exemption
      from registration of the
securities
      specified in the preceding subparagraph (a) is
claimed
      under Section 4(2) of the Securities Act of 1933, as amended (the "Act") and
      Rule 506 promulgated thereunder. Exemption is claimed based, among other things,
      upon representations made by Lucas Fund that include, among other things, a
      representation that it is an Accredited Investor within the meaning of
      Regulation D promulgated under the Act.
(d)
The
      Fund
      Warrant is exercisable until April 22, 2009 to purchase shares up to 205,800
      shares of Common Stock at a purchase price of $12.50 per share. The Fund Warrant
      is attached to this Current Report on Form 8-K as Exhibit 3.1.
4.
Issuance
      of Shares and Warrants upon Exercise of Conversion Right by Lucas Energy Total
      Return Partners, LLC
.
(a)
On
      April
      21, 2006, Lucas Energy Total Return Partners, LTD ("Lucas Partners") converted
      certain Senior Secured Royalty Income Notes in the aggregate principal amount
      of
      $1,60,000 issued to it by Xethanol (the "Partners Notes"). In connection with
      such conversion, Xethanol issued to Lucas Partners 400,000 shares of Common
      Stock and a three-year warrant (the "Partners Warrant") to purchase 124,200
      shares of Common Stock at a purchase price of $12.50 per share.
(b)
All
      of
      the securities specified in the preceding subparagraph 3(a) were issued in
      exchange for conversion of the
Partners
Notes.
      Xethanol did not receive any cash in that transaction. No commissions were
      paid
      or payable with respect to that transaction
.
(c)
Exemption
      from registration of the securities specified in the preceding subparagraph
      (a)
      is claimed under Section 4(2) of the Securities Act of 1933, as amended (the
      "Act") and Rule 506 promulgated thereunder. Exemption is claimed based, among
      other things, upon representations made by Lucas Partners that include, among
      other things, a representation that it is an Accredited Investor within the
      meaning of Regulation D promulgated under the Act.
(d)
The
      Partners Warrant is exercisable until April 22, 2009 to purchase shares up
      to
      124,200 shares of Common Stock at a purchase price of $12.50 per share of Common
      Stock. The Partners Warrant is attached to this Current Report on Form 8-K
      as
      Exhibit 3.2.
5.
Sales
      to Fusion Capital Fund II, LLC.
(a)
On
      April
      7, 10, 11, 12, 13, 17, 18 and 20, 2006, Xethanol exercised its right to require
      Fusion Capital Fund II, LLC ("Fusion") to purchase 934,763 shares of Common
      Stock for an aggregate purchase price of $5,748,005.99, pursuant to a Stock
      Purchase Agreement between Fusion and Xethanol dated October 18, 2005. A copy
      of
      that Stock Purchase Agreement is attached as Exhibit 10.1 to Xethanol's Current
      Report on Form 8-K filed with the Securities and Exchange Commission on October
      19, 2005.
(b)
All
      of
      the securities specified in the preceding subparagraph 5(a) were sold for cash.
      No commissions were paid or payable with respect to such sales.
(c)
Exemption
      from registration of the securities specified in the preceding subparagraph
      (a)
      is claimed under Section 4(2) of the Securities Act of 1933, as amended (the
      "Act") and Rule 506 promulgated thereunder. Exemption is claimed based, among
      other things, upon the representations made by Fusion in the Stock Purchase
      Agreement that include, among other things, a representation that it is an
      Accredited Investor within the meaning of Regulation D promulgated under the
      Act.
SECTION
      9 - FINANCIAL STATEMENTS AND EXHIBITS
ITEM
      9.01. Exhibits
Following
      is the Index of Exhibits furnished in accordance with Item 601 of Regulation
      S-K, filed as part of this Current Report on Form 8-K or incorporated by
      reference herewith:
3.1
Fund
      Warrant dated April 21, 2006 issued to Lucas Energy Total Return Master Fund
      by
      Xethanol Corporation.
3.2
Partners
      Warrant dated April 21, 2006 issued to Lucas Energy Total Return Partners,
      LTD
      by Xethanol Corporation.
SIGNATURES
Pursuant
      to the requirements of the Securities and Exchange Act of 1934, the Registrant
      has duly caused this report to be signed on its behalf by the undersigned
      hereunto duly authorized.
Xethanol
              Corporation
Date:
              April 26, 2006
By:
/s/ Christopher
              d'Arnaud-Taylor
Christopher
              d'Arnaud-Taylor
Chairman,
                President and Chief Executive Officer
(principal
                executive officer)