Coskata

About Coskata

Coskata, Inc. was a renewable energy firm established in July 2006, with its headquarters in Warrenville, Illinois. The company was brought into existence by Andrew Perlman's GreatPoint Ventures group, with initial financial backing from prominent venture capital firms including Khosla Ventures and Advanced Technology Ventures. The core of Coskata's business was the development of technology for producing cellulosic ethanol from a wide array of non-food feedstocks. These materials included wood chips, agricultural waste, municipal solid waste, and even old tires.

The company's process was a hybrid model, integrating thermochemical and biological methods. It involved a three-step approach: first, the carbon-based input material was converted into synthesis gas (syngas) through gasification. Next, this syngas was fermented into ethanol using proprietary anaerobic microorganisms originally discovered by researchers at Oklahoma State University. The final step involved separating and recovering the ethanol. This technology was notable because the bio-fermentation occurred at low pressures and temperatures and did not require expensive enzymatic pre-treatments, which aimed to lower operational costs. Coskata projected production costs at under $1 per gallon, a significant reduction compared to conventional corn-based ethanol. The process was also designed to be environmentally efficient, using less water and reducing greenhouse gas emissions by up to 96% compared to gasoline.

Coskata's business model focused on being a technology provider, intending to license its process to partners who would build and operate the production facilities. Key strategic partners included General Motors (GM), which invested in the company and planned to test the ethanol in its vehicles, and French oil major Total S.A. In 2008, the company announced plans for a pilot plant near Pittsburgh, Pennsylvania, with a capacity of 40,000 gallons annually. This was followed by the unveiling of a $25 million semi-commercial facility in Madison, Pennsylvania, in October 2009, which operated for over two years. The company also had plans for a full-scale commercial plant. Despite its promising technology, which led to its inclusion in MIT Technology Review's list of the 50 most innovative companies in 2010, Coskata faced challenges. In 2012, the company shifted its focus from biomass to natural gas as its primary feedstock and shelved plans for an IPO, citing unfavorable market conditions. Ultimately, Coskata went out of business in 2015, and its technology was re-emerged under a new company, Synata Bio.