Thursday, May 1, 2008

GM takes a stake in Mascoma, partners up for better biofuel

Mascoma Corp. has struck up a partnership with General Motors Corp. to develop cellulosic ethanol to be used as fuel, according to the automaker giant.

Under the deal, GM will make an undisclosed equity investment in the Cambridge-based clean-energy company.

The partnership will include projects to evaluate materials and other fuels for specific engine applications, as well as efforts to expand Mascoma globally, through promotion of increased biofuels distribution.

In February, Mascoma reported it had raised $30 million in equity funding and $20 million in debt funding.

In 2006, the company signed a $20 million contract with the state of New York to build a biomass-to-ethanol demonstration plant in Rochester.

Mascoma was founded in 2005 by Dartmouth professors Lee Lynd and Charles Wyman. The company is developing enzymes for the conversion of organic material to biofuels, such as ethanol.