50 Hottest Companies in Bioenergy candidate profile: Mascoma

Mascoma
Based in: Massachusetts
2008-09 ranking: #8

Business: Mascoma was founded in 2005 with initial funding from Khosla Ventures and Flagship Ventures in early 2006. A Series B round of funding was closed in November of 2006 and a Series C round of funding was closed in May of 2008. Mascoma is aggressively pursuing the development of advanced cellulosic ethanol technologies across a range of cellulosic feedstocks.

Mascoma's pilot cellulosic ethanol plant in Rome, NY

The company’s focus is consolidated bioprocessing — the potential is for the technology to eliminate the cost of added enzymes by having the same organism convert biomass to simple sugars, and thence to ethanol. Mascoma has subsequently received several state and federal grants, including a $14.8MM grant from the State of New York for the establishment of a demonstration plant, a $4.9MM grant from the U.S. Department of Energy for organism development, part of the $125MM U.S. Department of Energy Bioenergy Science Center Grant led by Oak Ridge National Lab, and a $26 million grant from the U.S. Department of Energy for the establishment of a demonstration plant.

Model: Owner-operator and licensor-partner.

Past milestones:

1. Mascoma reported that, in the lab, based on multiple runs with reduced enzyme requirements, it is seeing normalized per gallon operating costs in March 2009 at just under 40 percent of its June 2008 baseline.

2. In February, In New York, Mascoma announced that it has commenced production at its cellulosic ethanol plant in Rome, using non-food cellulosic biomass. The demonstration-scale plant, which was completed in December, has a capacity of 200,000 gallons per year, and was funded in part by grants from the New York State Energy Research and Development Authority (NYSERDA) and the New York State Power Authority (NYPA) provided the funding on the State’s behalf. Research partners at the facility include State University of New York – College of Environmental Science and Forestry, Cornell University and Clarkson University. The plant can utilize multiple cellulosic feedstocks including wood chips, tall grasses, corn stover (residual corn stalks) and sugar cane bagasse, which will be acquired locally.

3. Last October, the Department of Energy and the state of Michigan announced they they will provide $49.5 million towards a proposed woodchip based cellulosic ethanol production plant in Kinross, Michigan. The Department of Energy will provide $26.0 million in funding, and the state of Michigan will add $23.5 million. The proposed facility will produce 40 Mgy and is supported by General Motors and Marathon OIl, which are investors in Mascoma. Michigan State and Michigan Tech Universities will partner with the project to tailor Mascoma’s technology and supply chain options for the specific Michigan feedstocks used in production.

Future milestones:

1. Opening of its 20 Mgy cellulosic ethanol demonstration scale plant in Kinross, Michigan. Start up is targeted for September 2012, depending on meeting its financing timelines. The project could “flip back” to early 2013.

2. Phase 2 of the Kinross project – expansion to the full 80 Mgy nameplate capacity, will commence 6-12 months after the completion of start up of the 20 Mgy phase 1.

3. Will “horizontally expand” after completion of Kinross plant – other projects in parallel, depending on partner timelines and market conditions.

Metrics: Aims for yields of 70-85 gallons per ton from hardwoods, based on 70-85 percent of the theoretical yields of 100 gallons per ton.

Mascoma quotable quotes: “In financing, people perceive projects that are first of a kind as a higher risk. Also, there’s a concern about financial incentives expiring in 2012, and volatility in ethanol prices.

“People definitely see the potential of consolidated bioprocessing to eliminate the cost of added enzymes. They also like the potential we have to expand to other feedstocks, and the ability of the CBP platform to produce hydrocarbon compatible fuels and other chemicals. Also, they like the specific advantages of the hardwood feedstock and the certainty around that business model.”

The Hot 50 for 2009-10 will be released Tuesday, 12/1. Between now and then, you’ll see profiles of potential candidates in the Digest, and you’ll have a chance to vote for your favorites. Reader response will count for 50 percent of a company’s overall score in the preparation of the rankings. The remaining 50 percent is voted by a panel of experts.

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50 Hottest Companies in Bioenergy candidate profile: Mascoma

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