Oil Company Invests in Cellulosic Ethanol

MarathonMarathon Oil has made a $10 million equity investment in the research and development of cellulosic ethanol at Mascoma Corporation

The investment is part of $61 million raised in Mascoma’s third round of funding. As part of the investment, Marathon Senior Vice President Cliff Cook has joined the Mascoma Board of Directors.

“This investment in Mascoma’s leading-edge technology reflects our commitment to address increasing energy demand by bringing to market environmentally friendly, renewable fuel derived from non-food domestic biomass,” said Clarence P. Cazalot, Jr., Marathon President and CEO.

MascomaIn addition to Marathon, General Motors Corporation and several other investors participated in the third round of financing. During a press conference last week announcing General Motors’ investment, Mascoma Chairman and CEO Bruce Jamerson deferred questions about the company’s financing. “We are not talking today about financing, this is GM’s day,” said Jamerson. “But we will soon.”

With the completion of this round of financing, Mascoma has raised approximately $100 million in equity investment. Mascoma has also received commitments for over $100 million in state and federal grants, including a $26 million grant from the U.S. Department of Energy.