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GM and Mascoma Partner in the Race to Commercialize Cellulosic Ethanol

General Motors Corp. and Mascoma Corp. recently announced a strategic relationship to develop cellulosic ethanol focused on Mascoma's single-step biochemical conversion of non-grain biomass into low-carbon alternative fuels to help address increasing energy demand.

The relationship, which includes an undisclosed equity investment by GM, complements an earlier investment in a cellulosic ethanol startup that uses a thermo-chemical process to make ethanol from non-grain sources.

"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."

GM leads the auto industry in offering vehicles that can run on either ordinary gasoline or E85 - a blend of 85 percent ethanol and 15 percent gasoline - or any combination of the two. There are more than 7 million flex-fuel vehicles on U.S. roads, 3 million of which are GM cars and trucks.

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, privately held 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."