Coskata Gets US Loan Guarantee for Biorefinery

Being a biofuel manufacturer these days certainly pays off, especially during this exciting time when the race for an alternative to fossil fuels is more engaging than ever. One of the biggest such producers in the US, Coskata, received today the confirmation from the United States Department of Agriculture that some money would be coming its way.

More precisely, the US will give the company a $250 million loan guarantee for a commercial biorefinery which is poised to become the largest-planned cellulosic biofuel facility in the US.

The news in itself is music to another big market player's ears as well. GM, a major investor in Coskata, will be one of the first beneficiaries of the products coming off the pipes of the new plant.

Being the holder of one of the largest fleets of vehicles which run on biofuel (some 5 million cars), GM is paying an increasing attention to the developments on this market. Together with Coskata and the US Department of Energy, the car maker announced in March last year that it would pick up farming and start growing jatropha (a plant which can be used to produce biodiesel) in India.

“One of the challenges in making cellulosic ethanol available to the public is a lack of financial backing,” said Mary Beth Stanek, GM director of federal environmental and energy regulatory affairs.

“This loan will help to further commercialize this unique technology and environmentally friendly fuel. It’s great news for Coskata and an important first step for the construction of a full-scale facility.”