US Mascoma to raise funds for cellulosic ethanol production via IPO

(SeeNews) – Sep 20, 2011 - US biofuel maker Mascoma Corp said on Monday it was looking to raise USD 100 million (EUR 73m) from an initial public offering (IPO) to expand its cellulosic ethanol production and marketing capabilities.

However, Mascoma did not disclose IPO details such as the number of stock on offer, the expected price and the exchange it would list on.

The company also intends to construct two plants that will produce ethanol from pulpwood.

In early 2011, oil refining firm Valero Energy (NYSE:VLO) pledged to invest USD 50 million in the first plant worth USD 350 million, located in Kinross, Michigan. As part of the transaction, Valero agreed to buy out the plant's ethanol production, which is seen at 40 million gallons (151 million litres) a year. The second plant will be situated in Drayton Valley in Alberta.

Canadian organic food processor SunOpta (TSE:SOY) and US venture capital firm Khosla Ventures are the two largest shareholders of Mascoma with respective stakes of 20.6% and 17.5%.

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