Khosla Backs KiOR’s Plant Expansion

Biofuels maker KiOR says it will double the capacity of its facility in Columbus, Miss., to 26 million gal of cellulosic gasoline, diesel, and fuel oil. The expansion is expected to cost $225 million. Venture capitalist Vinod Khosla, who owns a majority stake in the public company, has committed $50 million in funding—with half coming from Khosla Ventures and half from his personal funds. The firm began shipping fuel from the first phase of the facility in June and has told investors it plans to start up the second facility at the same location by 2015. KiOR also plans to begin construction of a facility in Natchez, Miss., in 2014.