Coskata, as we know, has partnered up with GM to provide cellulosic ethanol fuel for the test program of GM’s flex-fuel vehicles via Coskata’s demo commercial plant. Bolstered by this pair up, and along with support from Khosla Ventures, Coskata is growing again, looking to rustle up $50 million to open two new ethanol plants. Ethanol plants are expensive to create, as several upstarts have discovered, and for them to have the backing to open up two more commercial facilities by 2011, in addition to their currently-running pilot lab and currently-under-construction demo commercial plant, is a pretty big deal.
Their plans are for one plant to use gas from sugar processing, and the other from wood biomass, and would allow them to significantly up their production levels. With other ethanol companies giving way to costs, there is a bit less competition for Coskata to contend with, however they aren’t taking chances. In addition to the Series C round raising $50 million, Coskata is planning to work with large partners who will lend operating experience and/or feedstock supplies. Recognizing their start-up status, CEO Bill Roe says that they’re all about working with major partners and working seriously towards the success of cellulosic ethanol.
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