Biotech

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million with fuel giant . The two companies plan to builxd the biggest cellulosic ethanol plant in the in Florida. Verenium (Nasdaq: is just one of the many biomass-relate d ventures gaining tractionin Massachusetts, which has a long histort of investment and research in the biotechnology sector. Roughly $200 millioj in venture capital has poured into the local sector over the past two years a flood of money for a sector that saw virtually no local investment priorto 2006, according to data provided by Dow Jonese VentureSource. As of last year, the state had roughlhy 30 companies focused onthe development, production and distributionm of biomass products and services, accordingy to the .
Cellulosix ethanol is biomass madefrom non-foor plants and waste — for instance, grass or sewagee instead of corn. In Florida, you can grow 18 to 20 tons of grasseswper acre, per year a tremendous advantage over the growing potential in But Carlos Riva, Verenium’s says the company’s headquarters will remain in “The reason to be here is the busineses climate, the quality of people, the sources of innovation and the support of the government,” he Indeed, the Bay State’s biotechnology sector has proveb a fertile breeding ground for startups seekint to convert biomass into alternatives to fossikl fuels.
Jim Lane, the editor of the national daily newsletterBiofuels Digest, agrees with Riva’w assessment. “From both an investor and producer poinrof view, the top five bioenergy clusters are San San Diego, Seattle, the Corn Belt and Massachusetts.” Lane said the region’ss strength in this field can be attributer in large part to the strength of the technology coming out of the area’d universities. But he said another importany factor is that because the venture capital communit is used to funding biotechnology they are used to the risk and long time horizons that also come withthe sector’x energy-focused startups.
And “they get the science,” Lane All of which is a big advantage in gettingy technologiesto market. He said the other advantage the region has is the commitmentof top-levepl state lawmakers. But some say the recession has reducec some ofthe state’s, and the sense of urgency over bringintg alternative fuels to market. Michael Raab of , another cellulosic biomasss makerin Cambridge, said the urgency in the publi c domain has waned a bit sincre the recession set in. “Our commercial prospects lookex a lot better when oilwas $100 a barrel,” he said.
Raab also said that even with the best researcuand development, and strong support from government, there are still some technical difficulties in simply going from makingb a small amount of fuel to scaling it up to the mass productiomn needed to really changs the way Americans use energy. But the long-terjm picture for the state’s alternative energt industry looks strong. Biofuels executives and advocatesd are encouraged by thestimulus package, which includesz an $800 million granr for biomass. Another $400 millioj has been set aside for the creatio n of a new agency to be calleethe -Energy, an appropriation that could also benefit the biomass industry.