June 23, 2011

Coskata Signs Letter of Intent for the Engineering, Procurement and Construction of its First Commercial Facility

coskata_logoCoskata, Inc., a developer of technology for the production of renewable fuels and chemicals, announced today that it has issued a Letter of Intent with Fagen, Inc. for engineering, procurement and construction services for the construction of its commercial cellulosic ethanol facility in Boligee, Alabama, that will be designed around the Coskata technology.

Fagen, Inc., the U.S. leader in construction of first-generation bio-refineries, and Harris Group Inc., a global leader in advanced biofuels engineering, will lead an EPC process that will include in its scope the project detailed design, procurement, construction and commissioning.

“After a rigorous selection process, we are pleased to announce that Fagen and Harris Group will work together to provide a facility that will be unmatched in quality, cost, and time to completion,” said William Roe, chief executive officer for Coskata, Inc. “We are confident that together with Fagen and Harris Group, we will demonstrate the value potential and long-term benefits of the Coskata technology in this exciting project.”

Coskata received a conditional commitment for a loan guarantee from the United States Department of Agriculture, and is working on the details that will be necessary to close the financing for the project. The facility will convert sustainably harvested wood biomass into ethanol, a high-octane renewable fuel, and is expected to bring approximately 300 construction jobs and 700 direct and indirect jobs to Greene County, Alabama.

“Our company has been extensively involved with ethanol plant construction, having built over half the ethanol plant production in the United States,” said Ron Fagen, Chairman of Fagen, Inc. “We are excited to work with Coskata, involving the next generation of ethanol production technology, and the continued drive toward locally produced biofuels. We look forward to excellent relations with the citizens and officials of Greene County, Alabama.”

“Harris Group is proud to have had a great working relationship with Coskata for nearly three years,” said Jim Gabriel, President of Harris Group Inc. “Our intimate familiarity with Coskata’s technology and our extensive experience in advanced biofuels commercialization will allow us to deliver a facility that can be replicated many times over around the world.”

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