Joint Venture Planning Ethanol Production Facility

Mascoma Corp., a renewable fuels company, has entered into definitive agreements with Valero Energy Corp., an independent oil refiner and ethanol producer, to develop and operate a 20 million gallon per year, commercial-scale cellulosic ethanol facility in Kinross, Mich.

According to Mascoma, the Kinross plant will use its proprietary consolidated bioprocessing technology platform to convert hardwood pulpwood into ethanol. The cost to construct, commission and start up the facility is expected to be approximately $232 million and includes certain up-front infrastructure costs that will enable the expansion of the facility to 40 million gallons per year, the company adds.

The project is fully funded, with Valero providing the majority of the financing and the remainder resulting from awards by the U.S. Department of Energy and the State of Michigan. Construction is anticipated to start in the next three to six months and be completed by year-end 2013.

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