Yesterday the Mascoma Corporation announced a deal that would result in the country’s first commercial cellulosic ethanol plant. Cellulosic ethanol is ethanol derived from wood scraps and non-usable crops, and can be used as an alternative automotive fuel.
The new plant will be located in Kinross, Michigan, and is expected to be open in 2013. Overall it will cost an estimated $350 million, $50 million of which is being supplied by Valero, the largest oil refiner in the United States. General Motors is also chipping in an undisclosed amount.
The commercial production of cellulosic ethanol is important because of a new rule put in place by the Environmental Protection Agency, which requires gas companies to blend in at least six million gallons of cellulosic ethanol with their gasoline each year.
Via the New York Times
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