Under terms of the agreement announced Sept. 14 by Mascoma Corp., Chevron Technology Ventures (a division of Chevron U.S.A. Inc.) will provide various sources of lignocellulosic feedstock to Mascoma. Mascoma will then convert the feedstock to cellulosic ethanol through its proprietary process, which produces lignin as a byproduct. Mascoma will provide this lignin, which will still have some energy value after sugars are removed via the Mascoma process, to Chevron. That company hopes to find a way to create a liquid fuel out of the remaining energy in the lignin. Mascoma’s proprietary Consolidated Bio Processing method breaks down the sugars in the cellulose and turns them into ethanol. The project will last for two years, and Mascoma is hopeful that the developed technology may be suitable for a wide variety of feedstocks. A company spokesperson said Mascoma is in talks with "a number of other organizations" regarding feedstock supply. In December 2008, Mascoma began creating ethanol from cellulosic biomass with positive results at its demonstration facility in Rome, NY. The ethanol is used for R&D purposes. The company, in collaboration with its commercialization subsidiary, Frontier Renewable Resources, is in the process of financing its first full-scale ethanol facility in Kinross, MI. The company plans to break ground for that facility in the first half of 2010.