Green VC

MIT/Stanford Venture Lab to Present "Biofuels 2.0: Sustainable Startups - from Garage to Gargantuan" on February 16

On February 16, the MIT/Stanford Venture Lab will present a program entitled Biofuels 2.0: Sustainable Startups - from Garage to Gargantuan. This program is co-sponsored by BayBIO.org and will aim to address a number of topics, including:

• Sustainable business models, scalability, and environmental impacts
• Opportunities for small, bootstrap startups in the biofuels value chain
• How failures in biofuels 1.0 are creating new opportunities in 2.0
• What do VCs think about Biofuels 2.0?

This program will feature the following:

• Jack Oswald - CEO of SynGest
• Eric McAfee - CEO AE Biofuels
• David Berry, MD, PhD - Partner, Flagship Ventures
• Paul Bryan, PhD - Biofuels VP-Tech, Chevron Energy Technology Co.
• Leandro Vetcher - Co-founder & VP BD, Green Pacific Biologicals
• Jim Lane - Editor/Publisher of the BioFuels Digest (Moderator)

This event will take place from 6:00 - 8:30 pm at Arbuckle Lounge and Bishop Auditorium at Stanford Business School, Stanford, CA.  Additional program information and registration is available here.

"Next Generation Biofuels: The Prospects and the Challenges of Non Food Crop Energy" Program to Take Place on January 28

Next Generation Biofuels: The Prospects and the Challenges of Non Food Crop Energy is the second program in a six-part panel discussion series from VC Taskforce and Morrison & Foerster entitled "Maximizing Returns in Emerging Cleantech Sectors: The Interplay of Regulation, Intellectual Property and Investment."  The goals of this series are:

• To provide an in-depth view into emerging sectors of the Cleantech economy
• To elaborate areas for VC consideration in due-diligence with regard to each sector
• To highlight areas for business planning/strategy development for emerging companies in the space

This program will take place on January 28 from 6:00 - 9:00 pm at Trader Vic's at Dinah's Garden Hotel, 4269 El Camino Real, Palo Alto, CA, 94306 and will feature the following panelists:

• Michael Ward - Partner, Morrison & Foerster (moderator)
• Jim Mullen - Partner, Morrison & Foerster
• Michael Burnside - President & CEO, Catchlight Energy
• Will Coleman - Partner, Mohr Davidow Ventures
• Neal Gutterson - President & CEO, Mendel Biotechnology

For more information:

• Next Generation Biofuels: The Prospects and the Challenges of Non Food Crop Energy - Program Information
• VC Taskforce - Home page

Astia and SDForum to Present Panel on Next Generation Biofuel Feedstock on October 21 (2008 Clean Tech Breakfast Series)

On October 21, Astia and SDForum will present the final program in the 2008 Clean Tech Breakfast Series.  This program is entitled "Next Generation Biofuel Feedstock" and will feature a panel that will share their insights into the current state of algae-related technology and commercialization efforts.  The panel will also discuss alternatives to algae in the biofuels sector. The panelists for this program are:

• David Blume - Biofuels Expert
• Will Coleman - Partner, MDV
• James Horn - Managing Director, Noventi
• Matt Jones - Partner, Nth Power
• Derek Dowsett - Partner, Moss Adams (moderator)

This event will take place from 8:00 am - 10:00 am at the Cabaña Hotel & Resort (Palo Alto), 4290 El Camino Real, Palo Alto, CA 94306. The cost for SDForum members is $25 and $30 for non-members.  Further program information and registration can be found here.

Mascoma Receives $49.5 Million from the U.S Department of Energy and the State of Michigan

Mascoma Corporation, a Boston, Massachusetts-based company involved in the development and deployment of cellulosic ethanol technologies, announced ealier this week that it received a $49.5 million -- $26 million from the U.S. Department of Energy and $23.5 million from the State of Michigan.  The funds will be used for the development of a cellulosic fuel production facility in Kinross in Chippewa County, Michigan that uses non-food biomass to convert woodchips into fuel. Mascoma investors General Motors Corporation and Marathon Oil Corporation are also providing support for this project.

Mascoma will be working on this project with Marquette, Michigan-based JM Longyear.  This partnership will involve the creation of a new company, Frontier Renewable Resources, which will own the project. Mascoma will also be working with Michigan State University and Michigan Technological University to adapt Mascoma’s technology and supply chain options for the Michigan feedstocks used in production.  The Kinross facility will use sustainably harvested mixed hardwood chips and other non-food biomass materials as the raw material for the production of cellulosic fuel.  The facility is expected to eventually produce 40 million gallons of ethanol and other fuel products annually.

"Michigan is proud to partner with Mascoma as a part of our commitment to lead the nation in alternative energy production," said Governor 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."

"We've targeted industries like alternative energy to diversify Michigan’s economy and create new jobs," Michigan Economic Development Corporation President and CEO James C. Epolito said. "Innovative tools combined with effective partnerships are enabling us to attract high-tech companies like Mascoma and accelerate Michigan’s transformation."

"Mascoma is pleased and honored to receive this important funding from the DOE and the State of Michigan," said Bruce A. Jamerson, Chairman and CEO of Mascoma Corporation. "This funding will allow us to accelerate commercial production of low cost, low carbon fuel that will reduce greenhouse gas emissions and promote energy independence," Jamerson continued.

"I applaud the decision by the Department of Energy and the state of Michigan to provide the incentives Mascoma needed to scale up the technology and accelerate construction of this facility here in Michigan," said Senator Carl Levin. "This investment in cutting-edge biofuel technology will create jobs in Michigan, and the incredible natural resources of the Upper Peninsula will help Mascoma to efficiently produce the next generation of fuels."

"Mascoma Corporation’s cellulosic fuel facility is a prime example of how Michigan continues to lead the way in solving our nation's energy crisis while creating new jobs in a green economy," said Senator Debbie Stabenow. "I am pleased to work with the rest of the delegation and the State of Michigan to support Mascoma in their mission to develop low-carbon biofuels and reduce our dependence on foreign oil."

"Mascoma and the Department of Energy recognize the potential northern Michigan and our workforce hold for developing alternative energy sources," Congressman Bart Stupak said. "Mascoma's proposed cellulosic fuels facility will be the first of its kind in the nation to produce ethanol from timber. This important federal-state-private partnership will put northern Michigan on the forefront of this developing technology, create hundreds of jobs in our community and the potential for many more. I am pleased to have played a role in helping to bring this significant investment to Chippewa County."

Masoma was founded in 2005 and has received approximately $100 million in equity investments thusfar.  Investors include Flagship Ventures, Khosla Ventures, Atlas Venture, General Catalyst Partners, Kleiner Perkins Caufield & Byers, Pinnacle Ventures, VantagePoint Venture Partners, General Motors, and Marathon Oil.

For more information:

• Mascoma - Home page
• Mascoma Corporation Announces $49.5 Million in DOE and State of Michigan Funding for Cellulosic Fuel Facility (October 7, 2008)
• Mascoma Corporation Raises $61 Million In Third Round of Funding (May 6, 2008)
• Mascoma Corporation Raises $30 Million in Series B Funding Led By General Catalyst Partners (November 13, 2006)
• Mascoma Corporation Secures Series A Funding from Flagship Ventures and Khosla Ventures for Ethanol Production Effort (July, 19, 2006)

U.S. Department of Energy to Provide up to $40 Million for Small-Scale Biorefinery Projects in Wisconsin and Louisiana

On Monday, July 14, the U.S. Department of Energy (DOE) announced the selection of two small-scale cellulosic biorefinery projects in Park Falls, Wisconsin and Jennings, Louisiana for federal funding of up to $40 million over five years.

Cellulosic ethanol is an alternative fuel made from a wide variety of plant materials or non-food based feedstocks, including agricultural wastes such as corn stover; forest wastes such as saw dust and forest thinnings; and energy crops, such as switchgrass. In studies conducted by scientist at DOE’s Argonne National Laboratory, compared with conventional gasoline, ethanol produced from cellulosic materials requires as much as 90 percent less fossil energy to produce and has the potential to reduce greenhouse gas emissions by more than 86 percent over the lifecycle.

Negotiations between the following companies and DOE will begin immediately to determine final project plans and funding levels:

Flambeau River Biofuels (FRB), LLC (Park Falls, Wisconsin)
The proposed biorefinery will be installed in an existing pulp and paper mill in Park Falls, Wis., and will produce liquid fuels from abundant and renewable cellulosic (wood) biomass. The biorefinery will not be dependent on any food-based feedstock materials, but rather on by-product or residuals from forest and agricultural sources. When completed, the facility will produce at least 1 trillion BTUs of renewable energy for the host mill and 6 million gallons of transportation (sulfur-free diesel) fuels per year.

FRB participants/investors include: ANL Consultants, Auburn University, Brigham Young University, Citigroup Global Markets, CleanTech Partners, Emerging Fuels Technology, Flambeau River Papers, Johnson Timber, National Renewable Energy Lab, Michigan Technological University, NC State University, Oak Ridge National Laboratory, ThermoChem Recovery International, University of Wisconsin, and the USDA Forest Products Laboratory.

Verenium Biofuels Corporation (Jennings, Louisiana)
Construction of Verenium’s 1.5 million gallon per year demonstration-scale cellulosic ethanol facility is underway and is scheduled to be complete in late 2008.  The project is moving rapidly to commercialize its proprietary technology for the production of ethanol from a wide array of biomass feedstocks, including sugarcane bagasse, agricultural byproducts, waste wood products, and other non-food based energy crops. 

The Jennings, Louisiana demonstration plant is operated by Verenium Corporation, which was formed in 2007 through a merger of Celunol Corp, and Diversa Corporation.

These two projects are the final round of selections for DOE’s competitive small-scale biorefinery solicitation.  A total of nine projects have been selected by DOE to receive up to a total of $240 million in DOE funding over the next five fiscal years, subject to appropriations.  Including industry cost share, more than $735 million will be invested in these projects over the next four to five years.

This news is part of more than $1 billion in investments that DOE has announced for multi-year biofuels research and development projects; these other announcements include:

• DOE Selects 3 Small-Scale Biorefinery Projects for up to $86 Million of Federal Funding in Maine, Tennessee and Kentucky (April 18, 2008)
• U.S. Department of Energy to Invest up to $33.8 Million to Further Development of Commercially Viable Renewable Fuels (February 26, 2008)
• U.S. Department of Energy Selects First Round of Small-Scale Biorefinery Projects for Up to $114 Million in Federal Funding (January 29, 2008)
• DOE Provides $30 Million to Jump Start Bioenergy Research Centers (October 1, 2007)
• Energy Department Selects Three Bioenergy Research Centers for $375 Million in Federal Funding (June 26, 2007)
• DOE Selects Six Cellulosic Ethanol Plants for Up to $385 Million in Federal Funding (February 27, 2007)

For more information on the July 14th announcement:

• DOE to Provide up to $40 Million in Funding for Small-Scale Biorefinery Projects in Wisconsin and Louisiana (July 14, 2008)
• DOE Energy Efficiency and Renewable Energy: Biomass Program
• DOE Bioenergy Research Centers

U.S. Department of Energy to Invest up to $33.8 Million to Support Development of Biofuels

Last week, U.S. Department of Energy (DOE) Assistant Secretary for Energy Efficiency and Renewable Energy Andy Karsner announced that DOE will invest up to $33.8 million over four years for four projects (listed below) that will focus on addressing key technical hurdles associated with mass production of clean, renewable fuels, such as cellulosic ethanol.  Specifically, these projects will work on developing improved enzyme systems to convert cellulosic material into sugars suitable for production of biofuels.

Cellulosic ethanol is a renewable fuel made from a wide variety of non-food materials, including agricultural wastes such as corn stover and cereal straws, industrial plant waste like saw dust and paper pulp, and energy crops such as switchgrass, specifically for fuel production.  By relying on a variety of feedstocks, cellulosic ethanol can be produced in nearly every region of the country, using material grown locally.  Though it requires a more complex refining process, cellulosic ethanol contains more net energy and results in lower greenhouse emissions than traditional corn-based ethanol.

In addition to the DOE funding for these projects (which is subject to Congressional appropriation) there will be also be a minimum 50% cost share from industry.  Including the industry cost share, the total funding for these projects will be up to $70 million.  The selected companies and projects are:

DSM Innovation Center Inc.
Development of a Commercial Enzymes System for Lignocellulosic Biomass Saccharification
This project will employ DSM’s internal, proprietary fungal systems to develop new approaches to improve enzymes for the conversion of pre-treated lignocellulosic biomass into sugars suitable for fermentation into cellulosic ethanol.  Team members -- Abengoa Bioenergy New Technologies (Nebraska); and DOE’s Los Alamos and Sandia National Laboratories (New Mexico).

Genencor - a Division of Danisco, USA, Inc.
Enhancing Cellulase Commercial Performance for the Lignocellulosic Biomass Industry
This project plans to reduce the enzyme-dose level required for biomass saccharification by improving the specific performance of the Trichoderma Reesei mix of fungal-based cellulases to facilitate production of cellulosic ethanol from sugars produced by the saccharification process. Team members - DOE’s National Renewable Energy Laboratory (Colorado)

Novozymes, Inc.
Project Decrease - Development of a Commercial-Ready Enzyme Application System for Ethanol
This project aims to improve performance of Novozymes’ most advanced enzyme system by decreasing the dosage of enzyme required to hydrolyze biomass into fermentable sugars suitable for cellulosic ethanol production.  Team Members: Novozymes North America (North Carolina); Novozymes A/S (Denmark); Novozymes (China) Investment Co. Ltd; DOE’s Pacific Northwest National Laboratory (Washington) and the National Renewable Energy Laboratory (Colorado); the Centre National de la Recherche Scientifique University (France); and Cornell University (New York).

Verenium Corporation
Commercialization of Customized Cellulase Solutions for Biomass Saccharification
This project will leverage Verenium’s advanced enzyme development capabilities to commercialize a cellulase enzyme system to produce a more cost-effective enzyme solution for biomass saccharification processes that will also tolerate conditions that enable more efficient process economics in producing ethanol from cellulosics.

In commenting on this announcement, DOE Assistant Secretary Karsner said:

Success of these projects will play a pivotal role in the rapid development and deployment of renewable fuels to reduce emissions and dependence on foreign oil, and fundamentally change how we power our vehicles ... In the interest of the environment, and energy, economic and national security, biofuels must continue to play a significant role as we work to diversify our nation’s energy sources and provide a balanced portfolio of science and technology solutions to help meet the rapidly growing demand for energy worldwide.

This news is part of over $1 billion that DOE has announced within the last year for multi-year biofuels research and development projects; these other announcements include:

• U.S. Department of Energy Selects First Round of Small-Scale Biorefinery Projects for Up to $114 Million in Federal Funding (January 29, 2008)
• DOE Provides $30 Million to Jump Start Bioenergy Research Centers (October 1, 2007)
• Energy Department Selects Three Bioenergy Research Centers for $375 Million in Federal Funding (June 26, 2007)
• DOE Selects Six Cellulosic Ethanol Plants for Up to $385 Million in Federal Funding (February 27, 2007)

For more information:

• U.S. Department of Energy to Invest up to $33.8 Million to Further Development of Commercially Viable Renewable Fuels (February 26, 2008)
• DOE Energy Efficiency and Renewable Energy: Biomass Program
• DOE Bioenergy Research Centers