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Alternative Energy - Thursday, November 8, 2007

Mascoma Buys Out Celsys BioFuels

VC-backed Mascoma has acquired Indianapolis-based Celsys BioFuel for an undisclosed amount. Celsys' technology was developed by Dr. Michael Ladisch, who will be taking a leave of absence from Purdue University to join Mascoma as the company's CTO. Some of the startup's IP is owned by Purdue. Cambridge, Mass.-based Mascoma, a biotechnology startup that develops biofuels from biomass. Celsys is similar but has taken a different path in terms of the raw materials. Mascoma has raised two rounds totaling $34M from General Catalyst Partners and Atlas Venture.

On the subject CNET run an interview with VC Vinod Khosla where he mentions Macoma. Says Khosla: "If they get to $1.25 per gallon or below (cost of production), you will have essentially unlimited market available to them. Unlimited from a start-up's point of view because that's how you can compete with gasoline. So that's the key. Multiple processes will eventually get there."