Cellulosic ethanol plant in Michigan’s Upper Peninsula

[Jeff]

FOR IMMEDIATE RELEASE Contact: Bridget Beckman, MEDC
June 27, 2008 (517) 335-4590
 
Granholm Says Mascoma Agreement Puts Michigan at Forefront of Next Generation Fuels
 
Historic investment set for production facility in U.P.s Chippewa County
 
LANSING Governor Jennifer M. Granholm and Mascoma Corporation CEO Bruce A. Jamerson today announced that the Massachusetts-based company has entered into a series of key strategic relationships to further Mascoma’s efforts to build its first commercial-scale cellulosic ethanol plant in Michigan’s Upper Peninsula.
 
Agreements with the Michigan Economic Development Corporation (MEDC), JM Longyear, and alliances formed with Michigan State University (MSU) and Michigan Technological University (MTU) will help bring the plant to Chippewa County, south of Sault Ste. Marie, where clean-burning, fuel-grade ethanol will be produced from wood fiber. The agreements build on Mascoma’s decision announced last July to locate in Michigan.
 
Long before the current run-up in petroleum prices, we declared Michigan’s intention to lead the nation in alternative energy production and help reduce our dependence on foreign oil, Granholm said. Mascoma’s next generation biomass-to-ethanol technologies are integral to wide-scale ethanol production, and this plant will put Michigan on the leading edge of technology that will create good-paying jobs for Michigan citizens.
 
Mascoma’s single-step cellulose-to-ethanol method, called consolidated bioprocessing, or CBP, uses advanced technologies to make ethanol from non-food based renewable sources such as wood chips and other biomass. The clean-energy technology is critical to producing ethanol more quickly, efficiently and economically.
 
Mascoma chose Michigan for its first commercial-scale facility based on the vast sustainable forests and agricultural materials available and the expertise provided by JM Longyear. In addition, Mascoma will collaborate with MSU and MTU to develop and hone scientific processes that utilize Michigan feedstocks for cellulosic ethanol production.

Working with the state of Michigan, two of its leading universities, and JM Longyear on this significant project brings us closer to commercial scale production of biofuels that can promote energy independence, reduce greenhouse gas emissions, and stimulate regional economic development, Jamerson said.
 
Since becoming governor, Granholm has been an advocate of growing an alternative energy and alternative fuel industry in Michigan. Under her leadership, the Michigan Economic Development Corporation (MEDC), led by President and CEO James C. Epolito, has worked with Mascoma to secure one of two locations in Chippewa County. Engineering work is underway to finalize the site that will be secured through a land swap under negotiation with the Michigan Department of Natural Resources. Yesterday, the Center of Energy Excellence (COEE) legislation was passed through the Michigan Legislature and with the governors signature, Mascoma will be eligible for a $15 million grant to become Michigan’s first Center of Energy Excellence.
 
There are great synergies in Michigan for Mascoma, not only in the ready supply of wood fiber across northern Michigan, but also great research institutions with a long-time focus on this science and our 21st Century Jobs Fund that is tuned to bringing job-creating alternative energy ventures to Michigan, Epolito said.
 
This new facility will mean more jobs in our agriculture, timber, and manufacturing industries while benefiting our environment and energy security as a nation, he said.
 
Mascoma and Marquette-based JM Longyear, a leading natural resource company, entered into a strategic relationship to combine Mascoma’s technology with JM Longyear’s significant project development experience, including its recent $1.6 billion Minnesota Steel project and its deep natural resource experience.
 
Mascoma’s revolutionary technology combined with site integration and innovative supply chain strategies position Michigan to lead the nation in the advancement of new, clean energy production and job creation, said JM Longyear CEO Stephen Hicks.
 
Mascoma is collaborating with research partners globally to identify and patent additional biomass-to-ethanol technologies. MSU will provide expertise in areas primarily relating to pretreatment technology for cellulosic ethanol production and assistance with renewable energy crops that can be utilized by the biorefinery. MTU will contribute its knowledge of sustainable forestry management practices and access to its automotive engineering laboratories for analysis of the biofuels produced at the project site part of its wood to wheels initiative.
 
Prior to the announcement of its first commercial-scale production facility in northern Michigan, Mascoma announced a pilot project in Rome, New York, which is now under construction and will be completed by the end of the year, and a 2MMGY pre-commercial scale facility to be run on switchgrass in Tennessee. Last month, Mascoma announced equity investments by General Motors and Marathon Oil Corporation (NYSE: MRO) as part of a $61 million third round of funding.
 
Sustainable transportation fuels will be part of the infrastructure much sooner than most people expect, said Beth Lowery, GM vice president of environment, energy and safety policy. It is exciting to see these latest moves by Mascoma to make next-generation biofuels a reality.

Collaborative, private-public partnerships such as this initiative on the part of the state of Michigan and Mascoma are integral to our ability to bring next-generation, environmentally friendly renewable fuels derived from non-food feedstocks out of the laboratory and into full-scale commercial production, said Cliff C. Cook, Marathon Petroleum Company senior vice president, supply, distribution and planning.
 
About Mascoma
Mascoma Corporation is a leader in advanced, low-carbon biofuels technology based in Boston, Massachusetts. Using proprietary microorganisms and enzymes developed at the companys laboratories in Lebanon, New Hampshire, Mascoma is collaborating with research partners globally to identify, patent and deploy a new generation of microbes and low-cost processes for producing advanced cellulosic ethanol technologies across a range of non-food feedstocks. Mascoma is developing demonstration and commercial scale production facilities in locations across the United States. For more information, visit www.mascoma.com .
 
About the 21st Century Jobs Fund
The 21st Century Jobs Fund is a $2 billion initiative conceived by Governor Granholm, approved by the Michigan Legislature, and administered by the Michigan Economic Development Corporation to accelerate the diversification of Michigan’s economy. For more information, see the MEDC Web site at www.michigan.org.

[fencerowphil (Phil L.)]

http://en.wikipedia.org/wiki/Cellulosic_ethanol

Jeff,
The site above gives some good overall info on the various processes.  This blurb is about a
similar startup in Georgia:


                      "The American company Range Fuels announced in July 2007 that it was awarded
                       a construction permit from the state of Georgia to build the first commercial-scale
                       100-million-gallon-per-year cellulosic ethanol plant in the United States.Construction
                       began in November, 2007."

A friend of mine was hired to be plant manager and began work September 2007.  They are moving a
lot of dirt down there, but the large site is pretty much hidden by the huge banking of top soil and
excavation going on.  I need to get with him and see what is happening down there.

This one and the one in Michigan may have a better future than the corn-based facilities.

[Wildflower]

Sounds like this plant planned in Michigan might be within easy commute of our property in da U.P. 

[Mooseherder]

Sounds like this plant planned in Michigan might be within easy commute of our property in da U.P. 

 

[Dana]

This spring I was talking to a seed dealer who mentioned that a lot of farm land in the Eastern U.P and Eastern L.P. were being planted into switchgrass as an ethanol plant was being built in that area. I bet that this is the plant they are planning on for that.

[fencerowphil (Phil L.)]

That is probably true, with switch grass being one of the highest rated
sources for that type of plant.

[DanG]

Even after all the talk of switchgrass, I wouldn't recognize it if you switched my britches with it.  Do any of you know anything about it?

[SwampDonkey]

They announced a cellulosic ethanol plant being set up in Maine this spring as well. I don't think it will be operational for a year or so. All good news for energy needs and forestry because of alternative markets besides the obvious.

We don't have many initiatives like this in NB, because they depend too heavily on government hand outs. Not enough private enterprise or wealth from private ventures to put out on the line. The biggest private owned and family run company here is heavily invested in petroleum as the energy source with the largest refinery in the country and another one going up. Government has a wait and see policy of most issues.

[fencerowphil (Phil L.)]

Here is a puzzle for all the organic substitutes for fuel:

ETHANOL/CORN
             "Ah, yes, corn is a cheap medium.  Let's make ethanol from it."
              Demand for the corm makes its price rise.
              Corn then becomes borderline as a medium.

ETHANOL/PINE "WASTE"
             "Ah, yes, pine waste is a cheap medium.  Let's make ethanol from it."
              Competition develops for pine fiber and the price rises.
              Pine becomes borderline.

ETHANOL/SWITCH GRASS
              "Ah, soooo, switchgrass even better.  Let's make ethanol from it."
              Now, we have corn up and fewer acres for several other crops, so they go up.
              Because of that trend, then switchgrass cost goes up....

Each avenue will face the same ultimate limitation, yet each will have its small part in helping.
Nothing can match the help we can achieve via conservation.  I hope these scenarios prove that point.

It is easy to imagine that, in spite of all this flurry of activity, we still end up with tremendously higher
energy costs.  As all these forces (above) combine with lower supplies and higher demand for the
fossil fuels. it gets worse due to the complication of both real and induced higher prices for food and for
all products related to energy in any way (which is most everything). Finally, global political pressure
is already building, but you can bet that it builds even higher because of the cumulative effect on food costs.

[Bro. Noble]

Even after all the talk of switchgrass, I wouldn't recognize it if you switched my britches with it.  Do any of you know anything about it?

Switchgrass that I'm familiar with is a warm season,  native prarie grass, similar to the bluestems and indian grass.  They may be talding about something entirely different, however.

[sharp edge]

We have a plant like that in Park Falls,WI . Been real quiet what is going on thier in the last year. The big oil co.say that technology doesn't work.

sharp E

[DanG]

Thanks Noble.  We ain't got no prairies around here, so I guess we ain't got no switchgrass, too.

I'm also wondering how flexible these ethanol plants are.  For instance, the plant in Soperton, Ga is being set up to use pine, and the one in SW Ga is going to use corn.  I just wonder how hard it would be to convert either of these to utilize a different base resource.  For instance, if I were to grow a bunch of cane and produce a tanker truck of juice, would the ethanol plant be able to use it, or would it require a whole different process?

[fencerowphil (Phil L.)]

From what I have been told about the Pine cellulose process, it is very specific
in relation to process and hardware.  The primary objective is the ethanol, but
there are systems in place along the process chain to collect other useful products.
This fact also increases the complexity and rigidity of the process. 

It may be that corn/sugar processes could "cross-feed" at some point in their
processes, but it might require considerable duplication of equipment in the early
steps of the processing.

[DanG]

"Cross-feed"!  Now that's a good term to describe what I was talking about!  

One thing I was thinking is that adding a squirt of fermented cane juice to the mash might get it working quicker, thereby saving some money.

[SwampDonkey]

I was thinking is that adding a squirt of fermented cane juice to the mash might get it working quicker.

Why not a little tobacco juice as well? 

Sorry DanG, it just struck me funny. We gotta laugh sometimes. 

[farmerdoug]

The thing with the ethanol plants that are built, they are based on cheap feedstocks.  The reason the feedstocks are cheap is because there is little demand for it.  Corn was cheap until they started using it for ethanol and now they complain it is to costly for them to make a profit(outrageous profit).  When these cellulosic ethanol plants come online I see the feedstocks for them to start to rise quickly too.  Then the will lose their high profit margin.  I would be happy to see the wood product value rise for the landowners but I wonder if the companies really think that they live in a vaccuum.

[pineywoods]

Maybe the technology will leak out, and we can brew our own ethanol from our sawdust 

[SwampDonkey]

I know that locally wood residue for electric power generation has not risen in price because there is only one buyer and mostly one supplier of any significant volume coming from a pretty much secure source.

[Fla._Deadheader]

 New job opportunity

  Here in Sweden there's a big project with machines that rip up the stubs from cut down trees (they get up approximately 60% of the tree ordinary left in the ground) and produce ethanol from that. Very interesting since it doesn't interfere with food production and, as I've heard, has a pretty good energy gain compared to, for example, corn.

[SwampDonkey]

Not so bad if they are just ripping up the root ball. Old roots should be left for microrhyzae   (spelling) that benefit some trees/plants to increase root surface area and for improving soil aeration. But, there is a down side, some root rot fungus present in the old roots could infect new planted seedlings or germinants to. 6 of one thing a dozen of another.