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Automaker Investing in Ethanol Company

GM partners with cellulosic ethanol firm.

General Motors has invested an undisclosed amount into, Coskata, Inc., an Illinois-based company working to develop cellulosic ethanol. This move follows GM's aggressive marketing of flex-fuel vehicles that are compatible with E-85 and statements that they want to build cars that run on a wide array of power options.

So far, no plants are producing cellulosic ethanol beyond a pilot phase; however research is ramping up due to the energy bill signed by President Bush. The new bill requires that 21 billion gallons of the 36 billion gallon mandate of renewable fuel use by 2022 be advanced biofuels such as cellulosic ethanol.

By partnering with GM, Coskata hopes to have a platform ready for its fuel when it hits the market; however that is not expected to happen until 2011.

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