Joint venture for cellulosic ethanol production

Dec. 16, 2011, Kinross, MI – Mascoma Corporation announced an agreement
with Valero Energy Corporation to develop and operate a unique 20
million gallon
per year commercial-scale cellulosic ethanol facility.

According to TheBioenergySite, the facility is expected to cost approximately $232 million, but will allow expansion to the plant generating
40 million gallons of cellulosic ethanol per year. Construction is set to begin within the first quarter of 2012 with completion by end-of-year 2013.

The Kinross facility will use Mascoma’s proprietary consolidated
bioprocessing (CBP) technology platform to convert hardwood pulpwood into
ethanol. Hardwood pulpwood is a selectively harvested, naturally
regenerated feedstock and is an underutilised, abundant resource in the
surrounding area.

“Valero’s substantial financial commitment to the Kinross facility
demonstrates Mascoma’s technology leadership, as well as our ability to
attract the significant investment that has posed a key challenge to
advanced biofuels production in this country,” stated Bill Brady,
President and CEO of Mascoma. “Our partnership with Valero to develop
and operate the Kinross cellulosic ethanol facility, and facilities
beyond Kinross, is a major step forward in our goal to provide a
low-cost, more sustainable alternative to petroleum-based products.”