Public-Private Partnerships Advance Mascoma Cellulosic Ethanol Plant in Michigan

29 June 2008

Mascoma Corporation has entered into a series of strategic relationships to further its efforts to build its first commercial-scale cellulosic ethanol plant based on its consolidated bioprocessing methodology in Michigan’s Upper Peninsula. (Earlier post.)

Agreements with the Michigan Economic Development Corporation (MEDC), JM Longyear, and alliances formed with Michigan State University (MSU) and Michigan Technological University (MTU) will help bring the plant to Chippewa County, south of Sault Ste. Marie, where fuel-grade ethanol will be produced from wood fiber. The agreements build on the decision announced last July to locate in Michigan.

Mascoma chose Michigan for its first commercial-scale facility based on the expanse of sustainable forests and agricultural materials available and the expertise provided by JM Longyear, a natural resource company In addition, Mascoma will collaborate with MSU and MTU to develop and refine processes that utilize Michigan feedstocks for cellulosic ethanol production.

MSU will provide expertise in areas primarily relating to pretreatment technology for cellulosic ethanol production and assistance with renewable energy crops that can be utilized by the biorefinery. MTU will contribute its knowledge of sustainable forestry management practices and access to its automotive engineering laboratories for analysis of the biofuels produced at the project site—part of its “wood to wheels” initiative.

The Michigan Economic Development Corporation (MEDC) has worked with Mascoma to secure one of two locations in Chippewa County. Engineering work is underway to finalize the site that will be secured through a land swap under negotiation with the Michigan Department of Natural Resources.

Mascoma will also be eligible for a $15 million grant to become Michigan’s first Center of Energy Excellence, via legislation passed and enacted last week.

Mascoma and Marquette-based JM Longyear entered into a strategic relationship to combine Mascoma’s technology with JM Longyear’s project development experience, including a recent $1.6 billion Minnesota Steel project and its natural resource experience.

Prior to the announcement of its first commercial-scale production facility in northern Michigan, Mascoma announced a pilot project in Rome, New York, which is now under construction and will be completed by the end of the year, and a 2MMGY pre-commercial scale facility to be run on switchgrass in Tennessee.