Valero Invests in Mascoma, Signs Cellulosic Ethanol Offtake Agreement; Inks LOI for up to $50M in Equity
by Jim Lane (Biofuels Digest) In New Hampshire, Mascoma announced that Valero Energy has joined as an investor in the company.
Further, Mascoma, Valero, and Mascoma’s operating subsidiary, Frontier Renewable Resources, (jointly owned with J.M. Longyear) have signed a non-binding letter of intent to support the construction of Mascoma’s 40 million gallon cellulosic ethanol plant in Kinross, Michigan. Groundbreaking on the project is slated for later this year.
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. As further support of the project, Valero will provide project development and construction oversight services. READ MORE and MORE (Mascoma) and MORE (Wall Street Journal) and MORE (GreenTechMedia)