Mascoma launches IPO

Mascoma, a renewable fuels company, is developing two biofuel production plants that will make ethanol from woody biomass.

In order to fund the development of the two plants, Mascoma is looking to raise $100 million (€73 million) through an initial public offering (IPO).

The first of the two wood-ethanol plants will be built in Kinross, Michigan, US. It will cost $350 million to develop, $50 million of which will be invested by oil company Valero Energy. The plant is scheduled to come online in 2013 and produce 40 million gallon a year.

Additionally, Mascoma will also use a portion of the funds raised to develop its production technology and increase its presence in the corn-based ethanol market.