LANSING – State Representative Gary McDowell (D-Rudyard) today announced that Mascoma, a leader in low-carbon biofuels technology, will build one of the nation's first commercial-scale cellulosic ethanol plants in Chippewa County, creating 500-700 jobs in the Upper Peninsula and investing $450 million in the community.
"I have always said that Michigan has the potential to become a powerhouse in renewable energy production, and Mascoma's decision to invest in the Upper Peninsula will turn that potential into real results," McDowell said. "Mascoma's cellulosic ethanol plant will create good-paying jobs for our workers, help reduce our dependence on foreign oil and produce clean, affordable energy. This is a very exciting announcement for our community and our state."
Mascoma CEO Bruce Jamerson said the facility would be located at one of two potential locations in Chippewa County. The site will be secured through a land swap with the Michigan Department of Natural Resources.
The facility is expected to be at full production by 2012 and produce 40 million gallons of wood-based ethanol annually. Because ethanol is blended at 10 percent, that would translate to 400 million gallons of ethanol-based fuel, which is currently sold at an average of $2.90 per gallon, Jamerson said.
The facility is estimated to create 50 direct jobs and 150 construction jobs, plus hundreds of spin-off jobs in forest harvesting, transportation and other areas.
Mascoma chose Michigan for its vast sustainable forests, agricultural materials and the expertise provided by JM Longyear, a natural resource company based in Marquette. Mascoma will also work with Michigan Technological University in Houghton and Michigan State University to better utilize Michigan feedstocks for cellulosic ethanol production.
"Working with the state of Michigan, two of its leading universities, and JM Longyear on this significant project brings us closer to commercial scale production of biofuels that can promote energy independence, reduce greenhouse gas emissions, and stimulate regional economic development," Jamerson said.
Mascoma's single-step cellulose-to-ethanol method, called consolidated bioprocessing, uses advanced technology to make ethanol from non-food based renewable sources such as wood chips and other biomass.
"Mascoma's cutting-edge technology creates ethanol more quickly, efficiently and economically, and won't push up the price of food like corn-based ethanol does," McDowell said. "The Chippewa County facility will diversify our economy and keep our air clean and healthy. This plan capitalizes on Michigan's strengths and ensures that renewable energy will power Michigan's progress into the 21st century and beyond."