Filed under: Ethanol
Mascoma scores another $10m, this time from Marathon Oil
Last week, Mascoma and GM announced that the automaker would invest an undisclosed amount in the cellulosic ethanol process being developed by Mascoma Corporation. Perhaps its a sign of the times that Marathon Oil Corporation has also ponied up a $10 million equity investment in research and development for the second-gen biofuel process.
As part of the Marathon deal, Marathon senior vice president Cliff Cook joined the Mascoma Board of Directors. Mascoma has also netted $26m from the Department of Energy and Domestic Fuel says that Mascoma has raised a total of $61m in its third round of funding. Considering that GM's investment was part of that $61m, we can calculate that GM's investment is no larger than $25m. Considering there are other investors that make up that $61m, GM's total is something less than $25m. Earlier this year, GM invested (also an undisclosed amount) in Coskata, another company working on bringing cellulosic ethanol to the masses. [Source: Domestic Fuel]
Reader Comments (Page 1 of 1)
Cervus 8:00PM (5/07/2008)
Starting to talk some real money here. When you see companies like this get tens and hundreds of millions of dollars in venture capital and third party investment, there's something to this. GM especially wouldn't invest their money if they didn't expect a return on it. And this is the second cellulosic ethanol company they've given money to.
Reply
1985 Gripen 8:43PM (5/07/2008)
When is cheap cellulosic ethanol set to hit the commodities market? I would expect to see the price of E85 drop at that point and be more price-competitive with gasoline.
If a gallon of gasoline is around $4 on average in the U.S. in a couple years (I just don't buy the $7 to $8 scares) and the a gallon of E85 can be priced more than 30% less than regular unleaded I can see adoption of E85 booming.
If you own a flex-fuel car and drive to the pump and see regular unleaded for $4 a gallon and E85 for $2.80 or less it'd make fiscal sense to buy the E85, even with its 30% worse fuel economy.
Right now with E85 priced less than 30% cheaper than gasoline it's nuts to buy E85 from a fiscal standpoint. You'd end up paying more per-mile to run E85.
Reply
TG 1:21AM (5/08/2008)
I*m not for any added petro-taxes, but no way can the price be lowered much in our *free enterprise* system.
Everyone gets their cut in the industry and things are booming.
Now Chavez does give it away in his own country for two reasons. First He took it over and Second, low petro prices keeps his economy from tanking out, and so keeps the people from revolting, so keeping him in power.
BTW. . Maz2 reminds us that. .
** Here are the facts. In the last five years, despite the nearly threefold growth of the corn ethanol industry (or actually because of it), the U.S. corn crop grew by 35 percent.
The production of distillers grain (a high-value animal feed made from the protein saved from the corn used for ethanol) quadrupled and the net corn food and feed product of the U.S. increased 26 percent....** [Volume lowers feed costs..eh?]TG
**Not only doesn't ethanol production take food from the world, but it has increased commodity prices and encouraged more production. We are looking at record crops of wheat, and if the weather holds, soybeans.**
chicagotribune.com/news/opinion/chi-oped0506fuelmay06,0,481881.story
=============================
Farmers burn gas and diesel every day in every way . . . foods gotta go up. = TG
Reply
Dad 10:30AM (5/08/2008)
"$10 million equity " is chump change.
Reply
Wise Golden 11:58AM (5/08/2008)
"2. When is cheap cellulosic ethanol set to hit the commodities market? I would expect to see the price of E85 drop at that point and be more price-competitive with gasoline."
Maybe ten years...maybe 20...maybe never if we keep fighting traditional ethanol.
Reply
brian 8:20PM (5/08/2008)
vaporware...i'll believe it when its being pumped into my automobile.
Reply