Mascoma Corporation will receive a total of $26.0 million in funding from the Department of Energy and an overall contribution of $23.5 million from the State of Michigan for the development of a cellulosic fuel production facility that uses non-food biomass to convert woodchips into fuel.

Mascoma executives made the announcement Tuesday with officials from the DOE, Michigan Governor Jennifer M. Granholm, members of the Michigan Congressional delegation and the Michigan Economic Development Corporation.

“Michigan is proud to partner with Mascoma as a part of our commitment to lead the nation in alternative energy production,” said Governor Granholm. “This company, and their partners, will create jobs in Michigan as they develop the next generation of cellulosic ethanol that will reduce our dependence on foreign oil and make fuel more affordable for our families.”

The facility will be located in Chippewa County in the Upper Peninsula of Michigan, in the town of Kinross. The funding provided by DOE and the State of Michigan will accelerate Mascoma’s construction of the facility and the scale-up of its technology process while also paving the pathway to commercial low-carbon and sustainable fuel production in Michigan.