General Motors (NYSE: GM) is now collaborating with two separate companies working to develop cellulosic ethanol. The automaker announced today a "strategic relationship" with Mascoma Corp., which is developing single-step biochemical conversion of non-grain biomass into ethanol.
In January GM announced a highly publicized partnership with Coskata Inc, which is using a thermo-chemical process to produce ethanol from non-food sources.
Both agreements involved an undisclosed equity investment by GM.
"Taken together, these technologies represent what we see as the best in the cellulosic ethanol future and cover the spectrum in science and commercialization," GM President Fritz Henderson said. "Demonstrating the viability of sustainable non-grain based ethanol is critical to developing the infrastructure to support the flex-fuel vehicle market." Mascoma has raised significant equity from venture capital investments and secured more than $60 million in state and federal grants, including the recent awarding of a $26 million grant from the U.S. Department of Energy.
Mascoma’s single-step cellulose-to-ethanol method, called Consolidated Bioprocessing, or CBP, lowers costs by limiting additives and enzymes used in other biochemical processes.
Based in Boston, Mascoma is using proprietary microorganisms developed at the company’s laboratories in Lebanon, N.H., and is collaborating with research partners globally to identify and patent additional biomass-to-ethanol technologies.
Mascoma is testing its CBP technology and expects to begin producing ethanol later this year at its demonstration plant under construction in Rome, NY. Mascoma also has partnered with The University of Tennessee to develop a switchgrass-to-ethanol pilot facility near Knoxville, TN, and is pursuing opportunities in the state of Michigan.
"Cellulosic biofuels represent next-generation renewable energy, and have the potential to reduce oil dependence, reduce greenhouse gas emissions, and stimulate regional economic development," Mascoma Chairman and CEO Bruce Jamerson said. "Our transformational technology will allow us to combine the affordable non-grain biomass with low-cost conversion techniques to make ethanol more quickly, efficiently and economically than is possible with other biochemical methods."
There are more than 7 million flex-fuel vehicles on U.S. roads that can run on high-ethanol blends of fuel. Three million of these are GM cars and trucks, however the infrastructure is not yet in place to allow many of these vehicles to take advantage of ethanol.
GM’s multi-dimensional involvement with Mascoma will include projects to evaluate materials and other fuels for specific engine applications as well as collaborating on Mascoma’s efforts to expand its commercialization projects globally, including promotion of increased biofuels distribution.
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