Mascoma Gets Offtake AgreementMascoma was founded and is run by Colin South, a leader in this field.
Colin joined our BOD in October of 2010.
When it comes to offtake agreements, we are in good hands
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Mascoma, Frontier Renewable Resources and Valero Ink Deal to
Develop Commercial Cellulosic Ethanol Biorefinery
Valero invests in Mascoma and signs a letter of intent to help pave way for Kinross, Michiganbased
biorefinery.
Lebanon, NH – January 13, 2011: Mascoma Corporation, an innovative biofuels company,
today announced that Valero Energy Corporation, the nation’s largest independent oil
refiner, has invested in Mascoma Corporation.
Further, Mascoma, Valero, and Mascoma’s operating subsidiary, Frontier Renewable Resources LLC, jointly owned with natural resource management company, J.M. Longyear LLC, have signed a non-binding letter of intent to support the construction of one of the world’s first commercial scale wood-based cellulosic ethanol
biorefineries, slated to break ground in 2011 in Kinross Charter Township, Michigan. Under the
terms of the letter of intent, Valero would potentially invest up to $50 million of the equity
required to finance the project through Frontier Kinross LLC, a subsidiary of Frontier, and would
enter into an off-take agreement for the project’s ethanol production.
Valero’s participation in the project strengthens the financing package for the Kinross
biorefinery, complemented with funds from the State of Michigan, through the Michigan
Economic Development Corporation (MEDC) and the U.S. Department of Energy (DOE).
As further support of the project, Valero would provide project development and construction
oversight services. The biorefinery is planned to have an annual production of 40 million
gallons of low-carbon cellulosic ethanol, to be covered by the off-take arrangement with Valero.
Frontier will use hardwood pulpwood, which is selectively harvested, naturally regenerated, and
is an underutilized, abundant resource in the area surrounding the Kinross biorefinery.
Mascoma’s 200,000 gallons of cellulosic ethanol per year demonstration facility in Rome, New
York, has demonstrated the viability of the technology over the past two years and sets the
stage for the commercial facility.
“Valero’s proposed investment in our first commercial-scale production facility proves the
economic practicality of Mascoma’s technology for the conversion of woody biomass into
ethanol,” said Bill Brady, Chief Executive Officer of Mascoma. “We are also thrilled to have
Valero as a shareholder in Mascoma Corporation as there are many synergies even beyond the
Kinross facility, where the technologies we have developed could be helpful to Valero’s
business.”
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