Coskata raises $19.5 million
March 10, 2008
BY Sarah Smith
Web exclusive posted March 21, 2008 at 3:55 p.m. CST
According to a regulatory filing in early March, investors eager to capitalize on cellulosic ethanol's promising technology have pledged $19.5 million to Coskata Inc., an Illinois upstart that promises to produce waste-based fuel for $1 per gallon.
Coskata's second round of funding attracted venture capital from initial investors and some new ones. The new capital came from Globespan Capital Partners, General Motors Corp., Capital Partners, Khosla Ventures, GreatPoint Ventures and Advanced Technology Ventures. Coskata was formed in 2006 with backing from Khosla Ventures, Advanced Technology Ventures and GreatPoint Ventures.
"Coming off of General Motors making an undisclosed strategic investment in Coskata, we are happy to have closed our Series B round and be in an excellent financial position to move forward," said Wes Bolsen, Coskata chief marketing officer of business development. "We look forward to continuing our work with the investment community as we rapidly commercialize Coskata's technology."
In January, the fledgling company announced a partnership with GM to commercialize the production of cellulosic ethanol, using gasification technology and bacteria developed at the University of Oklahoma, to generate 99.7 percent pure ethanol, plus water. The process uses most organic waste, including garbage, old tires and wood waste. According to the companies, GM cars will test the fuel later this year.
A 40,000-gallon pilot plant will produce ethanol in late 2008, Bolsen said. Around the same time, dirt work will begin on a 50 MMgy to 100 MMgy commercial-scale facility, which is estimated to cost $300 million to $400 million. Site locations haven't been announced yet, but Coskata announced that Colwich, Kan.-based ICM Inc. would design and construct the commercial plant.
Because the plants can use any locally available waste, the production, environmental and transportation costs are lowered, Bolsen said, adding that it's politically appealing because the feedstock doesn't interfere with the food chain. Bolsen envisions locating Coskata refineries next to corn-based ethanol plants to capitalize on the agricultural waste those plants generate, which will make them more efficient. Coskata also plans to partner with feedstock suppliers, gasification companies and large chemical companies that have the capital to adopt the technology.
According to a regulatory filing in early March, investors eager to capitalize on cellulosic ethanol's promising technology have pledged $19.5 million to Coskata Inc., an Illinois upstart that promises to produce waste-based fuel for $1 per gallon.
Coskata's second round of funding attracted venture capital from initial investors and some new ones. The new capital came from Globespan Capital Partners, General Motors Corp., Capital Partners, Khosla Ventures, GreatPoint Ventures and Advanced Technology Ventures. Coskata was formed in 2006 with backing from Khosla Ventures, Advanced Technology Ventures and GreatPoint Ventures.
"Coming off of General Motors making an undisclosed strategic investment in Coskata, we are happy to have closed our Series B round and be in an excellent financial position to move forward," said Wes Bolsen, Coskata chief marketing officer of business development. "We look forward to continuing our work with the investment community as we rapidly commercialize Coskata's technology."
In January, the fledgling company announced a partnership with GM to commercialize the production of cellulosic ethanol, using gasification technology and bacteria developed at the University of Oklahoma, to generate 99.7 percent pure ethanol, plus water. The process uses most organic waste, including garbage, old tires and wood waste. According to the companies, GM cars will test the fuel later this year.
A 40,000-gallon pilot plant will produce ethanol in late 2008, Bolsen said. Around the same time, dirt work will begin on a 50 MMgy to 100 MMgy commercial-scale facility, which is estimated to cost $300 million to $400 million. Site locations haven't been announced yet, but Coskata announced that Colwich, Kan.-based ICM Inc. would design and construct the commercial plant.
Because the plants can use any locally available waste, the production, environmental and transportation costs are lowered, Bolsen said, adding that it's politically appealing because the feedstock doesn't interfere with the food chain. Bolsen envisions locating Coskata refineries next to corn-based ethanol plants to capitalize on the agricultural waste those plants generate, which will make them more efficient. Coskata also plans to partner with feedstock suppliers, gasification companies and large chemical companies that have the capital to adopt the technology.
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