A $10 million equity investment by Marathon Oil in Mascoma was announced yesterday (6th May) as part of the $61 million raised in Mascoma’s third round of funding round. With the completion of this round of financing, Mascoma has raised approximately $100 million in equity investment. The company has also received commitments for over $100 million in state and federal grants, including the recent awarding of a $26 million grant from the U.S. Department of Energy.

According to the company, Marathon’s investment will go towards the funding of research and development activities at Mascoma, as well as the construction of operating facilities. As part of this new investment, Cliff Cook, Senior Vice President of Supply, Distribution and Planning at Marathon, has joined the Mascoma Board of Directors.

"This investment in Mascoma’s leading-edge technology reflects our commitment to address increasing energy demand by bringing to market environmentally friendly, renewable fuel derived from non-food domestic biomass," said Clarence P. Cazalot, Jr., Marathon President and CEO. "Marathon’s integrated refining, marketing and transportation infrastructure and extensive engineering capabilities, combined with Mascoma’s world class research and development team, provide the kind of synergy that will be necessary to bring next-generation cellulosic ethanol out of the laboratory and into full-scale commercial production."

In addition to Marathon, General Motors Corporation and several other investors participated in the third round of financing, joining the company’s existing investors who include Khosla Ventures, Flagship Ventures, Atlas Venture, General Catalyst Partners, Kleiner Perkins Caufield & Byers, Pinnacle Ventures and Vantage Point Venture Partners. Pinnacle Ventures also provided a $20 million debt facility to Mascoma.

"We are pleased to have closed our third round of financing and to have assembled a strong team of partners from across the cellulosic ethanol value chain," said Mascoma Chairman and CEO Bruce Jamerson. "The recognition that Mascoma has received from our new investors has helped further position us for long-term growth and success. We look forward to entering into a new and exciting phase of development and to collaborating with Marathon to promote ethanol production and distribution."

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