The funding will support the development of two different pilot systems. One is for Shell Hydrogen for the production of hydrogen from byproducts created by processing soybeans and animal fats into diesel fuel. (Earlier post.) The other will make propylene glycol, also from biodiesel byproducts.

But Virent’s biggest project is producing gasoline directly from sugars such as corn syrup and sugar cane, said Eric Apfelbach, chief executive and president.

Stark Investments, of Milwaukee, and Venture Investors, of Madison, led the round.