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]

General Motors today announced their second equity investment in a developer of cellulosic ethanol technology in recent months. The automaker is buying into Mascoma Corp. Mascoma has developed a single-step cellulose to ethanol process that apparently requires fewer enzymes and other additives. Mascoma has proprietary microbes that are used in its Consolidated Bioprocessing (CBP) technology. The CBP process can convert most forms of biomass such as straw, wood, paper pulp, and agricultural waste into liquid fuel. So far, Mascoma has received more than $60 million in federal and state grants for their work. To date Mascoma has been testing their technology in the lab with a demonstration plant due to come on line later this year in Rome, NY. GM President Fritz Henderson is not disclosing how much the automaker is investing. Earlier this year GM invested in Illinois-based Coskata. GM is holding a conference call later this afternoon where we will hopefully get more details. We do know that Mascoma has been trying for a while to have the first cellulosic ethanol plant up and running, with projects announced in Tennessee, New York state and Michigan.

[Source: General Motors]

The magical cost of $1 per gallon of cellulosic ethanol is certainly a hot calling card these days, and one of the most well-known purveyors of this story is Coskata. Coskata splashed onto the scene in January with the big GM announcement, and has stayed in the news by announcing a partnership with ICM and, later this month, will disclose the location of its 40,000 gallons a year demonstration facility.

Bill Roe, the Coskata CEO, gave C-Net's Michael Kanellos an explanation yesterday of just how his company will be able to make this greener ethanol for that low a price. The short version is that Coskata's plan to license it's technology to bigger companies (companies that already know how to effectively build large ethanol plants), it's ability to use pretty much any carbon-containing item as a source for the fuel and it's mixed approach (one that contains both biological and thermochemical processes) to making ethanol all add up to a plan that, at this point, makes cheap cellulosic ethanol seem reasonable. Read the full details over on C-Net.

[Source: C-Net]