What could be better than an inexpensive, environmentally friendly process for converting plants into fuel? On Sept. 10, Biofuels Digest reported that Incitor Inc., an Albuquerque-based start-up was successful in attracting another round of venture capital investments totaling $1 million for its conversion technology that turns biomass into biodiesel for $2 a gallon.
According to Biofuels Digest, "The company has signed a letter of intent to build its facility in Milan, and has since attracted investment from the New Mexico Angels and the Sun Mountain Capital of Santa Fe."
Over the summer, Cottonwood Technology Fund, an early-stage technology fund that targets the entrepreneurial communities along the Rio Grande, invested $1.5 million in Incitor.
An Incitor press release states that Incitor's "patent-pending low-temperature chemical process breaks down almost any biomass from agricultural, solid, woody or algal waste to create commodity petrochemical replacements, specialty bio-based chemicals, and Alestron(TM), a novel third generation biofuel compatible with both gasoline and diesel."
"We believe Incitor's unique low-cost chemistry brings new economics to the biofuels and biochemical industries. It's new chemistry that's potentially disruptive," Cottonwood Managing Director David Blivin said in a press release.
According to Incitor Vice President for Business Development Jacob Berman the new venture funding is being put to use to rapidly scale biofuel production to about 30,000 gallons per year, as a pilot project. The goal is to reach between 4 million and 10 million gallons annually in a few years. However, government certification will be required before Incitor can commercially produce and sell a new type of biofuel.
The technology was developed under a $2 million Army Corps of Engineers' Construction Engineering Research Laboratory contract and another $1.6 million was also obtained from individual investors, including Incitor CEO, Dr. John Elling.
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