Coskata, ICM to build ethanol plant

Warrenville, Ill.'s Coskata said today that it's teaming up with Colwich, Kan.-based ICM to design and construct a commercial ethanol plant.

Coskata, which is developing cellulosic ethanol from waste, came out of stealth mode last month when Detroit, Mich.'s General Motors (NYSE: GM) announced that it would take a significant stake in the startup (Khosla-backed Coskata, EcoMotors come out of stealth).

The size of the investment from GM was not disclosed.

Coskata's first commercial facility, using its biological fermentation technology, is expected to open in late 2010.

"Aligning with ICM on one of our first commercial plants is a natural choice because of their unrivaled biofuels technical knowledge and ability," said Bill Roe, president and CEO of Coskata.

ICM is an ethanol plant design, engineering and support firm.

Coskata said it uses microorganisms and efficient bioreactor designs for its conversion process.

The company said its system can turn virtually any carbon-based feedstock, including biomass, municipal solid waste, bagasse, and other agricultural waste into ethanol.

"Coskata and ICM will speed the commercialization of a process that will convert biomass into advanced biofuels from a number of renewable materials, at a production cost of less than $1 a gallon," said Roe.

Coskata was founded in 2006 with funding from Khosla Ventures, Advanced Technology Ventures and Great Point Ventures.