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Looks like Coskata will have to share its automotive sugar daddy with another biofuel firm. General Motors announced a new strategic relationship with ethanol startup Mascoma, along with an undisclosed equity investment in the company, this morning. GM’s partnership and investment could help Mascoma get closer […]

Looks like Coskata will have to share its automotive sugar daddy with another biofuel firm. General Motors announced a new strategic relationship with ethanol startup Mascoma, along with an undisclosed equity investment in the company, this morning. GM’s partnership and investment could help Mascoma get closer to building the nation’s first swtichgrass biorefinery.

Mascoma’s technology centers on what it calls “consolidated bioprocessing,” which is basically a fancy way of saying “converting cellulosic biomass directly into ethanol in one, simple, cheap and energy efficient step, using engineered organisms and enzymes.” At least, that’s the idea. Mascoma’s lead scientist, Lee Lynd, has been working on this problem since the 1970s.

Headquartered in Boston, Mascoma has a lab in Lebanon, N.H., near Dartmouth College, where Lynd is a professor. The company is currently building a pilot plant in Rome, N.Y., and has partnered with the University of Tennessee to develop a switchgrass-to-ethanol pilot facility near Knoxville, Tenn.

Mascoma, like Coskata, is backed by Khosla Ventures, making for two shared investors. Mascoma has raised almost $90 million to date from a number of investors: Khosla, Flagship Ventures, General Catalyst Partners, Kleiner Perkins Caufield & Byers, Vantage Point Venture Partners, Atlas Venture and Pinnacle Ventures.

It’s no surprise that GM is investing more in biofuels. The company says it already has 3 million flex-fuel vehicles on the road in America, and by investing in biofuel startups GM is outsourcing the development of future fuels that will power its vehicles. The costs for this strategy are also attractive: When we visited Coskata for its grand opening, GM reps explained that investments in biofuels take significantly less capital than investments in electric vehicles.

So now the race is really on. And the teams are getting the same sponsors. Coskata’s CEO Bill Roe explained to us at the E2T offices that the startup is now in a speed game to get to market first. Coskata and Mascoma are both speeding to build their pilot plants, and GM stands to win either way.

  1. Rory Gawler Thursday, May 1, 2008

    I’m so glad GM is really on board with this whole situation.

    Developing the hybrid Suburban was a bold move in reducing our consumption of fossil resources.

    Their ads on NPR are highly educative as well. When they say that they have millions of vehicles on the road “running on ethanol”, they nicely demonstrate how easy it is to abuse grammar to greenwash their irresponsibility.

    In the end, I don’t blame them though. It’s like blaming Wal Mart.

    I blame all of us, including myself. I used to own a Suburban… I burned more diesel trying to get it to run on WVO than I would have if I had just bought an old Jetta. I’d hate to think the entire world has to learn this lesson the same way I did:

    You don’t need a big car.

    It’s true. I get more stuff in my matrix than I ever did in my suburban…. no fuel tank in the trunk, no pumps, etc…

    Okay, I’m done.

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  2. [...] 40 million gallon per year plant. The other, Mascoma, has been less visible lately — but just today announced a partnership with General Motors, which also backs Coskata. The round was led by Passport, with participation from a passel of [...]

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  3. [...] General Motors Corp is taking another stake in a company focused on developing ethanol from sources other than corn, the automaker said on Thursday. According to Mascoma, traditional methods used to unlock sugars from cellulosic materials include harsh mechanical or chemical pretreatment. This process opens up the feedstock so that enzymes can be added to finally set the sugars free. Mascoma, like Coskata, is backed by Khosla Ventures, making for two shared investors. [...]

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  4. Great to see GM is investing on biofuels. There should be a social education to wake concience over citizens about these serious issues.

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  5. [...] round of financing that included $10 million from Houston-based Marathon Oil. GM participated as we reported last week in this round as well as previous investors Khosla Ventures, Flagship Ventures, Atlas Venture, [...]

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  6. [...] from mainstream media. The New York Times reports today that companies like DuPont and Genencor, General Motors, Honeywell and BP are investing in waste-to-fuel projects that are planned to come online in the [...]

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  7. [...] the pack in developing partnerships with large multinationals and Washington. Both Coskata and Mascoma have partnerships with General Motors, while Range Fuels received a $76 million grant from the US Department of Energy. All three are [...]

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  8. [...] and would also provide some of its carbon-based waste (think old tires) as a feedstock for Coskata. Also in 2008 GM partnered with ethanol startup Mascoma and took an equity stake in the [...]

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