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Dept. of Energy Funding Accelerates Michigan Mascoma Cellulosic Fuel Plant Construction

The US Department of Energy has allowed the Mascoma Coporation to shift $26 million in funding from a proposed site in Tennessee to the Kinross site in Michigan, accelerating construction of the country’s first commercial cellulosic fuel plant that is estimated to bring up to 700 new and spin-off jobs to the UP. A matching grant from the state will bring the total investment to $49.5 million towards making Michigan one of the nation’s leaders in biofuel production.

Mascoma Corporation is receiving $26.0 million in funding from the U.S. Department of Energy (DOE) and $23.5 million from the state of Michigan, which will allow Mascoma to accelerate construction of a cellulosic fuel facility in Kinross, in the Upper Peninsula’s Chippewa County, and scale up its technology process while also paving the pathway to commercial cellulosic fuels production in Michigan.

The announcement was made today by the DOE in Washington D.C. and was followed by a joint press avail in Lansing with company officials, Governor Jennifer M. Granholm, members of the Michigan congressional delegation, and the Michigan Economic Development Corporation (MEDC).

“Michigan is proud to partner with Mascoma as part of our commitment to lead the nation in alternative energy production,” said Granholm. “This company and their partners will create jobs in Michigan as they develop the next generation of cellulosic ethanol that will reduce our dependence on foreign oil and make fuel more affordable for our families.”

Mascoma will produce ethanol from the UP’s abundant, renewable resource of wood by-products. From the original radio address announcing the Mascoma project -

You’ve probably heard the rush to produce billions of gallons of ethanol from corn has been pushing up the price of food, something no one wants. But Mascoma will produce ethanol that can power a vehicle from wood chips and other non-food related materials. This clean energy technology is critical to producing ethanol more quickly, efficiently and economically. And it’s cleaner burning.

Not only will this project bring as much as a quarter billion dollars in investment to the U.P.’s Chippewa County, it will create hundreds of jobs in logging and transportation as well as the construction jobs needed to make the plant a reality. Mascoma is just the latest alternative energy investment that stands to put Michigan at the forefront of renewable, next-generation fuels.

You can read more on the cellulosic ethanol process here.

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