Mascoma Corporation has announced that it intends to establish the country’s first operating facility producing cellulosic ethanol utilizing switchgrass as feedstock. The project represents one of the largest commitments of capital yet made in support of the cellulosic biofuels industry.

Mascoma and The University of Tennessee plan to jointly build and operate the five million gallon per year cellulosic biorefinery. Construction is expected to begin by the end of 2007 and the facility will be operational in 2009. The business partnership and plans for the facility are a result of Tennessee Governor Bredesen’s Biofuels Initiative, a research and business model designed to reduce dependence on foreign oil and provide significant economic and environmental benefits for Tennessee’s farmers and communities. It includes a $40 million investment in facility construction and $27 million for research and development activities, including incentives for farmers to grow switchgrass funded by the State and The University of Tennessee. The large-scale demonstration facility will be located in Monroe County, Tennessee.

The University of Tennessee’s Institute of Agriculture will support the establishment of switchgrass as an energy crop. Initial research conducted by the University of Tennessee’s Institute of Agriculture indicates that Tennessee is capable of generating over one billion gallons of cellulosic ethanol from switchgrass alone.