New investment of in the region of the $45 to $55 million is being sought by the Colusa Biomass Energy Corporation in order to support the validation, feasibility, plant engineering and design, as well the cost of the construction of its planned biorefinery. The company says it is in discussions and initial negotiations with prospective funding sources, but that a restructuring and reorganization of the company will probably be required.

Tom Bowers, CEO of Colusa Biomass stated, “It is critical that funding, which has not previously been available to us on acceptable terms, be obtained and committed. Such funding should place the Company and its technology, which is focused on the conversion of waste rice straw to fuel grade ethanol, and the production of sufficient quantities of marketable silica, in a position to pursue the opportunity.”

The company said today (12th February) that its primary objective is to complete, as soon as possible, independent testing and validation of its biomass to ethanol technology. Results of the technology testing and validation, together with the independent feasibility study, are expected to be completed early this year.