Coskata moving forward with next-gen ethanol

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 pairing 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 Coskata to have the backing to open up two more commercial facilities by 2011, in addition to its current pilot lab and under-construction demo commercial plant, is a pretty big deal.

Coskata's plans are for one plant to use gas from sugar processing and the other from wood biomass. This would allow the company to significantly up its production levels. With other ethanol companies giving way to costs, there is a bit less competition for Coskata to contend with, however it isn’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 its start-up status, CEO Bill Roe says that it's all about working with major partners and working seriously towards the success of cellulosic ethanol.

Via Earth2Tech