SmartEnergyViews

A joint pilot project between the University of Tennessee and Mascoma Corp. to make switchgrass ethanol has been scaled back. and Mascoma is dropping out as a partner but will provide technology.

According to the news report, the company pulled out because of a soft market for ethanol, and the university says their "previous expectations were unrealistic." The project was previously awarded a $26 million DOE grant.

Mascoma, which recently got equity funding from GM, says they have patented microorganisms that break down cellulosic biomass into ethanol.

They say they have raised $61 million in third-round funding, including $10 million in equity funding from Marathon Oil and the $26 million DOE grant with U.T.

Just editorializing, but maybe U.T. got hooked up with a company in the IPO business instead of the biofuels business?