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Cellulosic ethanol firm Mascoma buys SunOpta for USD51m
Massachusetts biofuel startup Mascoma is paying USD51m to acquire SunOpta BioProcess (SBI). The Ontario-based firm, a subsidiary of natural and organic foods firm SunOpta, has developed steam explosion technology for use in fibre pretreatment systems. Mascoma will own around 73% of the company, with SunOpta retaining a stake of around 18% and other shareholders holding the remaining 9%. SBI will operate as Mascoma Canada.
Deal Details
- Status completed
- Amount US$51m
- Buyer Mascoma
- Seller SunOpta BioProcess
Founded in 2005, Mascoma has developed bioprocessing technology for producing ethanol from cellulose-based biomass feedstock such as switchgrass and woodchips. The firm says its one-step processing technology removes the need for enzymes and additives in the production process.
Mascoma has an operational demonstration-scale facility in Rome, New York, and is developing a commercial-scale plant in Michigan. The USD250m Michigan project will have an annual production capacity of 20m gallons and is scheduled for completion in 2012. The facility will incorporate SBI’s pretreatment technology.
To date, the firm has raised more than USD100m in funding from investors including Atlas Venture, Flagship Ventures, General Catalyst Partners, General Motors, Kleiner Perkins Caufield & Byers, Khosla Ventures, Marathon Oil and VantagePoint Venture Partners.
In July, Mascoma teamed up with Stellenbosch Biomass Technologies (SBMT) to further develop its biofuel technology. SBMT plans to commercialise the technology in South Africa, and is hoping to build a demonstration-scale plant within the next two years.
At the start of the year, SBI secured a USD6m contract to supply its equipment to an undisclosed company in China. The client, said to be one of the largest operators in China’s corn, biochemical processing and new energy sectors, will use the pretreatment equipment in a demonstration cellulosic ethanol plant scheduled for completion by year end.
