09 December 2011 17:12 [Source: ICIS news]
HOUSTON (ICIS)--US renewable fuels company Mascoma and refining major Valero have agreed to build a 20m gal/year commercial-scale cellulosic ethanol facility in Kinross, Michigan, they said on Friday.
The project, with an estimated cost of $232m (€174m), is expected to be completed by the end of 2013, they said. Capacity may be doubled to 40m gal/year at a later stage.
Valero will provide the bulk of the financing, with the remainder coming from awards by the US Department of Energy (DOE) and the ?xml:namespace>
The plant will run on Mascoma’s proprietary bioprocessing (CBP) technology platform to convert hardwood pulpwood into ethanol.
George Stutzmann, Valero vice president of alternative energy said: “We view this first commercial-scale cellulosic ethanol facility in Kinross and our partnership with Mascoma as an important foundation for potential expansion beyond Kinross.”
The agreement to build the plant comes after Valero's move in January 2011 to invest in Mascoma.
At the time, Valero, Mascoma and Mascoma subsidiary Frontier Renewables Resources signed a non-binding letter of intent to develop a commercial-scale wood-based cellulosic ethanol bio-refinery.
($1 = €0.75)
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