Cobalt Technologies and American Process Inc. have agreed to build the world’s first industrial-scale cellulosic biorefinery to produce biobutanol in Alpena.  The continuous fermentation and distillation technology will convert cellulosic biomass feedstock into fermentable sugars that will be used to produce ethanol and biobutanol.  The biobutanol can be used “as is” in paints, coatings and blended with gasoline, diesel and ethanol, or it can be converted into bio-based plastics or full performance jet fuel.  Ethanol production will begin in early 2012, with a switch to biobutanol later in the year.  Funding for the project includes grants of $18 million from the U.S. Department of Energy and $4 million from the State of Michigan.