Mascoma, a developer of renewable fuels, has entered into a cooperative agreement with the US Department of Energy (DOE) to financially support the design, building and functioning of a business-scale hardwood cellulosic ethanol plant in Kinross, Michigan.
According to the cooperative agreement, in addition to the contribution of $20 million, the US DOE will fund about $80 million to the development and research of the Kinross ethanol plant. Valero Energy and the State of Michigan will grant the balance fund, which is required for completing this project.
Bill Brady, Mascoma’s Chief Executive Officer and President, stated that the financial support from US DOE for the development and building of the 20 Mgal/d cellulosic ethanol plant in Kinross creates a significant milestone to the company and biofuels market. Brady added that the company is delighted to deploy the consolidated bioprocessing (CBP) technology solution to manufacture cellulosic ethanol, which serves as a less-expense, sustainable alternative to the petroleum products.
The company’s Kinross plant will employ its CBP technology solution for producing the cellulosic ethanol from the hardwood pulpwood, which is a naturally regenerated feedstock. The development and building of the project is expected to commence in the next 3 to 6 months, so that it will be completed by the end of 2013. The Kinross ethanol plant will be developed and functioned by a joint venture, Kinross Cellulosic Ethanol LLC created by Valero and Mascoma.
Valerie Reed, US DOE Office of Energy Efficiency and Renewable Energy’s Acting Biomass Program Manager, stated that in addition to the reduction of the foreign oil demands, the biofuels having increased potential ensuring new economic opportunities and jobs for rural communities in America. Reed added that cooperative agreement between the DOE and Mascoma for the development of the Kinross ethanol plant using CBP techniques will satisfy the energy demand in America with the sustainable bioprocesses.
Source: http://www.mascoma.com