Coskata's secret weapons are patented bacteria and bioreactors that it says can produce larger amounts of cellulosic ethanol at lower cost than other methods from materials including farm waste, household trash and prairie grass. Oklahoma State and Oklahoma Universities developed the micro-organisms and granted exclusive license to Coskata, which developed the bioreactors and process to recover the ethanol.
The company says it can turn four old tires into seven gallons of ethanol and two bales of hay or straw into five gallons at a production cost under $1 per gallon. That compares with $1.40 to $1.50 for corn-based ethanol, according to the Renewable Fuels Association and Department of Energy, respectively.
The project has a long way to go before achieving a significant scale. Privately held Coskata, which was launched in 2006 and has 37 employees, will open a plant late this year in a location to be named that will be able to produce 40,000 gallons annually.