Cellulose ethanol company raises another $30 million

By Dave Nilles | October 26, 2006
Another company with plans to commercialize cellulose-to-ethanol technology today announced it has raised $30 million in funding for research and development. It's the second round of venture funding in five months for Cambridge, Mass.-based Mascoma Corp.

The company, which was founded this year, will use the latest funds for "further development of production technologies and processes to make ethanol from cellulosic agricultural and forestry wastes," according to a release. The funding will be used for further research, the development and construction of new demonstration facilities, as well as designing commercial facilities for additional build-out, the release added.

This round of financing was led by General Catalyst Partners, with additional participation from Kleiner Perkins Caufield & Byers, Vantage Point Venture Partners, Atlas Venture and Pinnacle Ventures, as well as existing investors Khosla Ventures and Flagship Ventures.

"We are entering a new and exciting phase," said Mascoma President and Director Dr. Colin South. "With this second round of funding completed, we are focused on further developing our production technologies and processes to make fuel ethanol from cellulose a practical and sustainable reality for consumers."

Mascoma announced its first round of venture funding in July when Khosla Ventures and Flagship Ventures invested $4 million. The initial round of funding was slated for technology development, demonstrations and engineering for commercial-scale ethanol production.

"Mascoma is poised to transform the current model for ethanol production," said Vinod Khosla, founder of California-based Khosla Ventures. "Mascoma's research and innovation in the field have solidified our leadership position in commercializing cellulosic ethanol technology, and we expect a great and positive impact on the industry and consumers alike."

Dave Nilles is Online Editor for Ethanol Producer Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.

Posted: 3:07 p.m. CST Thursday, November 13, 2006