Tuesday, May 6, 2008

Mascoma caps third venture round at $61M

By Mass High Tech

Executives at Cambridge cellulosic ethanol developer Mascoma Corp. say the firm has closed its third round of funding, bringing in a total of $61 million over the past few months.

The most recent addition, Marathon Oil Corp., added $10 million to the pool, following $45 million provided in March from a syndicate of investors including Cambridge firms General Catalyst Partners and Flagship Ventures, Waltham-based Atlas Venture and California-based Khosla Ventures.

As part of the new investment, Cliff Cook, senior vice president of supply, distribution and planning at Texas-based Marathon, has joined the Mascoma board of directors.

Also in March, the company pulled in $20 million in venture debt, according to documents from the U.S. Securities and Exchange Commission.

The latest funding will be used to advance the company's cellulosic ethanol production research, as well as the construction of operating facilities, according to the company.

Earlier this month, Mascoma landed an equity investment for an undisclosed amount -- and a technology partnership to help develop its cellulosic ethanol -- with automaker General Motors Corp.

In 2006, Mascoma signed a $20 million deal with the state of New York to build a biomass-to-ethanol demonstration plant in Rochester. The project was moved to Rome, N.Y. the following year, and according to recent statements from executives, the plant is expected to be up and running as early as June.

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.