The nation's first commercialscale cellulosic ethanol plants will be built in the Upper Peninsula south of Sault Ste. Marie with construction beginning next year. The facility, which could employ 50 full-time workers, will produce clean-burning, fuel-grade ethanol from wood fiber.

Construction could lead to between 500 and 700 spin-off jobs, according to the governor's office, including about 100 construction jobs for up to two years, 150 to 200 transportation maintenance jobs, and 200 to 300 forestry jobs.

The Center of Energy Excellence legislation ,sponsored by Senator Jason Allen, passed the Michigan Legislature Friday, June 27, and was announceed by Governor Jennifer Granholm and Mascoma Corporation CEO Bruce Jamerson. With with the governor's signature, Mascoma will be eligible for a $15 million grant to become Michigan's first Center of Energy Excellence.

The legislation creating the program, said Senator Allen, is designed to attract technology businesses to Michigan, partner with a state university, and requires accountability.

"Every project must have a university partner so that Michigan also is training the next generation of scientists," said Mr. Allen. "Forging these relationships gives Michigan new products and new workers with valuable skills."

Mascoma, based in Boston, Massachusetts, chose Michigan for the facility based on its sustainable forests and agricultural materials available. The company also worked with J.M. Longyear of Marquette, a forest products company and owner of 76,500 acres of forestland in the Upper Peninsula.

Mascoma is collaborating with Michigan State University and Michigan Technological University to develop and hone scientific processes that utilize Michigan feedstocks for cellulosic ethanol production. MSU will provide expertise in areas relating to pretreatment technology for cellulosic ethanol production and assistance with renewable energy crops that can be utilized by the biorefinery. MTU will contribute its knowledge of sustainable forestry management practices and access to its automotive engineering laboratories for analysis of the biofuels produced at the project site, part of its woods-to-wheels initiative.

Mascoma's single-step cellulose to-ethanol method, called consolidated bioprocessing, or CBP, uses advanced technologies to make ethanol from non-food based renewable sources such as wood chips and other biomass. The clean-energy technology is critical to producing ethanol more quickly, efficiently, and economically, according to the company.

Engineering work is underway to finalize the site that will be secured through a land swap under negotiation with the Michigan Department of Natural Resources.

Last month, Mascoma announced equity investments by General Motors and Marathon Oil Corporation.

"Sustainable transportation fuels will be part of the infrastructure much sooner than most people expect," said Beth Lowery, GM vice president of environment, energy, and safety policy. "It is exciting to see these latest moves by Mascoma to make nextgeneration biofuels a reality."