Mascoma Corp. has signed a cooperative agreement with the U.S. Department of Energy to assist in the design, construction and operation of a commercial-scale hardwood cellulosic ethanol facility in Kinross, Michigan. The cooperative agreement provides for up to USD 80 million in DOE funding, in addition to USD 20 million in funding previously awarded by the DOE related to research and development for this project.
This agreement includes a cost-sharing arrangement under which the DOE will contribute to the costs for construction of the Kinross facility, and the balance of the construction costs will be funded by Valero Energy Corp. and a grant from the State of Michigan.
This agreement includes a cost-sharing arrangement under which the DOE will contribute to the costs for construction of the Kinross facility, and the balance of the construction costs will be funded by Valero Energy Corp. and a grant from the State of Michigan.
The Kinross facility will use Mascoma’s proprietary CBP technology platform, which has been developed by Mascoma over the past five years, to convert hardwood pulpwood into ethanol. Construction of the Kinross facility is anticipated to start in the next three to six months and is expected to be completed by year-end 2013.