(RTTNews) - Waste Management, Inc. (WM: News ) Wednesday announced an agreement with Terrabon, L.L.C. to invest in Terrabon's waste-to-fuel conversion technology.

The company said that the deal combines its industry leadership and expertise in the collection and management of a wide range of segmented waste streams with Terrabon's technology, which is complementary to the company's waste services in the areas of recycling, landfill, and waste-to-energy and consulting services capabilities.

The company also said that it joins Valero Energy Corp. (VLO: News ), the largest refiner in North America, which also invested in Terrabon in April 2009 and recently increased its investment in Terrabon.

Terrabon will use the investment from Waste Management and Valero to advance the scalability of their technology. Waste Management will also assist Terrabon in securing organic waste streams, which Terrabon will use to produce high-octane gasoline using its MixAlco technology.
MixAlco is an acid fermentation process that converts biomass into organic salts, or bio-crude, which would be shipped by truck, rail or pipeline to a Valero refinery or other centralized processing facility. It would be converted to a high-octane gasoline that can be blended directly into a refiner's fuel pool. Terrabon has recently completed the production of gasoline from sorghum biomass at its advanced biofuels research facility in Bryan, Texas.

WM closed Tuesday's trading at $30.04.

To receive FREE breaking news email alerts for Waste Management Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com