Mascoma Corporation of Cambridge, Mass. is planning to build a cellulosic ethanol facility somewhere in Michigan by the end of 2009, putting that state in the race to be the first in the nation to produce ethanol from wood on a commercial scale.

Michigan Governor Jennifer M. Granholm joined Mascoma Corporation CEO Bruce Jamerson in making the announcement.

“Mascoma’s decision to choose Michigan is helping us achieve a key part of our economic plan – making our state a leader in alternative energy production,” Granholm said. “Cellulosic is the next step in wide-scale ethanol production, and this puts Michigan on the leading edge of technology that will create good-paying jobs for Michigan citizens.”

“It is exciting that the birthplace of the American automobile industry is becoming a leader in next-generation biofuels,” said Mascoma’s Jamerson.

Mascoma’s Michigan cellulosic plant will make ethanol from mainly wood chips and other non-food agricultural crops.