NH biofuels company signs deal with Valero

LEBANON, N.H.— New Hampshire-based biofuels company Mascoma Corp. has entered into an agreement with energy giant Valero to build a plant that produces ethanol using Mascoma's proprietary technology.

Mascoma, of Lebanon, agreed to the deal with Texas-based Valero to build the $233 million plant in Kinross, Mich. It would produce millions of gallons of "second generation" ethanol.

Valley News of Lebanon (http://bit.ly/tGpBoy ) says the plant would be Mascoma's first commercial-scale facility. It's also a crucial step as Mascoma attempts to bring its plant-based ethanol to market.

So far, Mascoma's ethanol has been produced only in laboratories and a small demonstration facility in upstate New York.

The company, which was founded in 2005, has incurred $150 million in debt to date and has never posted a profit.