« Energtek and Confidence Petroleum Sign $23M Pact to Commercialize ANG Technology | Main | Neste Oil Launches 10%+ NExBTL Diesel Blend Commercially in Finland »
Marathon Oil Takes $10M Stake in Mascoma
6 May 2008
Marathon Oil has made a $10-million equity investment in Mascoma Corporation, a developer of cellulosic ethanol based on the single-step biochemical conversion of non-grain biomass into low-carbon alternative fuels. The investment was part of a $61-million financing round, Mascoma’s third.
As part of this new investment, Cliff Cook, Senior Vice President of Supply, Distribution and Planning at Marathon, has joined the Mascoma Board of Directors.
Last week, GM announced that it had entered a strategic relationship with Mascoma which includes an undisclosed equity investment by GM. (Earlier post.)
With the completion of the third round of financing, Mascoma has raised approximately $100 million in equity investment. Mascoma has also received commitments for more than $100 million in state and federal grants, including the recent awarding of a $26 million grant from the US Department of Energy.
Mascoma’s Consolidated Bioprocessing (CBP) technology is designed to lower costs by limiting additives and enzymes used in other biochemical processes. Mascoma has a nationally recognized research effort focused on CBP and is currently testing its CBP technology with the expectation of beginning ethanol production later this year at its demonstration plant under construction in Rome, NY. Mascoma also is pursuing opportunities in the states of Tennessee and Michigan.
Marathon is the fourth-largest United States-based integrated oil and gas company and the nation's fifth largest refiner. The company is a leading ethanol blender, and by mid-2008, Marathon will have the capacity to blend ethanol at the E-10 level throughout its entire distribution system. Marathon also holds an equity interest in two Midwest ethanol manufacturing plants with a combined capacity of 220 million gross gallons per year.
May 6, 2008 in Brief | Permalink | Comments (3) | TrackBack (0)
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/t/trackback/22062/28808310
Listed below are links to weblogs that reference Marathon Oil Takes $10M Stake in Mascoma :
Comments
10mil is nothing, but if 61 is all Mascoma needs then cheers to Marathon.
Posted by: NCyder | May 6, 2008 6:51:49 AM
Smart move on their part. It is many times easier to raise funding when you have already raised funding from big players. Once one group gets on board, more want to. It is getting over that first threshold that is difficult.
Posted by: SJC | May 6, 2008 11:17:37 AM
would like to have you inform me as your progress goes on liquid natual gas.for gasoline driven cars go.
we are in the propane gas business in the dominican republic,with 11 stations.
and would like to distribute your product.
we are open to test station if you are able.
Posted by: robert pasut | Oct 16, 2008 9:39:40 AM
