LEBANON, N.H. (AP) — New Hampshire-based ethanol company Mascoma Corp. has signed a deal with oil giant Chevron.
Under the agreement, the Lebanon-based company will get feedstock for making renewable fuel and Chevron Technology Ventures, a division of Chevron, will get an energy-rich byproduct from that process.
Chevron spokesman Russell Johnson told the Valley News that the byproduct, called "lignin," is being studied for its potential use as a high-performance fuel replacement for petroleum.
Financial terms of the agreement were not disclosed. But Mascoma spokeswoman Kate Casolaro said it was significant for a company of Mascoma's size. Mascoma makes ethanol out of woody biomass such as switchgrass and woodchips and turns it into fuel.