Mascoma And Valero Plan Ethanol Plant

Biofuels firm Mascoma and partner Valero Energy have formed a joint venture to build and operate a 20 million-gal-per-year cellulosic ethanol facility in Kinross, Mich. Valero will provide most of the funds for the $232 million plant and will hold a majority stake. Mascoma will contribute proceeds from an $80 million Department of Energy cost-sharing agreement and a $23.5 million grant from the state of Michigan. Mascoma’s genetically modified yeast and bacteria hydrolyze biomass and then ferment it into ethanol. Construction of the plant, to be based on hardwood feedstocks, is expected by late 2013.