Cellulosic Ethanol Developer Mascoma Gets $46.5 Million In New Plant Grants
By John O'Dell October 7, 2008Cellulosic ethanol pioneer Mascoma Corp. says it has received a $49.5 million cash infusion from the State of Michigan and the federal Energy Department for development of a new plant in Michigan.
Mascoma, one of two cellulosic ethanol companies being backed by General Motors Corp., has developed a process that uses proprietary enzymes to convert wood chips into ethanol fuel.
The grants announced today include $26 million from the federal government and $23.5 million from the state.
Boston-based Mascoma also has a demonstration plant in Rome, N.Y.
While conventional ethanol is made from crops including corn and sugar cane, cellulosic ethanol is made from waste products and non-food crops such as praire grasses.
Production of both types of the alternative fuel has drawbacks -- including potentially increasing heat-trapping carbon dioxide. But conventional ethanol production has been blamed for increasing the cost of grain-based basic foodstuffs.
The goal of cellulosic ethanol backers is to remove the fuel's impacrt on the food chain and, possibly, to reduce the amount of energy required in ethanol production.
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