Cobalt Biofuels gets $25M for biobutanol

Usually when a startup classifies itself as a biofuel company, it makes one of two fuels: biodiesel or ethanol. However, there’s a range of alternatives that could be commercialized, one of which Cobalt Biofuels is after: biobutanol, a liquid fuel that is more similar to gasoline than ethanol.

Cobalt has just taken a third venture round of $25 million to put further work into the fuel, which it plans to use as an additive for either standard diesel or gasoline. Butanol is also useful in the chemical industry, and is made, at least with Cobalt’s processes, from non-food feedstocks.

The round was led by LSP and Pinnacle Ventures. Also participating were Vantage Point Venture Partners, The Malaysian Life Sciences Capital Fund, @Ventures and Harris and Harris. Cobalt is based in Mountain View, Calif.

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