GM partners up with Mascoma for non grain Biomass.

With the price of corn and other agricultural grains rising, the auto industry is wondering just how quickly ethanol and other alternative fuels will catch on with American customers. General Motors envisions one potential solution: Develop so-called cellulosic ethanol from non-grain sources.

GM on Thursday announced a strategic partnership with alt-fuel maker Mascoma to convert non-grain biomass into cellulosic ethanol. GM is taking an undisclosed stake in privately held Mascoma, which is based in Boston and was founded in 2005 by two Dartmouth engineering professors.

Cellulosic biomass refers to such naturally occurring sources as wood chips and switchgrass, which can be converted into biofuels such as ethanol.

GM President Fritz Henderson said the automaker continues to invest in cutting-edge alt-fuel technologies and firms because GM believes that "ethanol has the greatest near-term potential as a clean-burning, renewable fuel that can help reduce oil dependence."

What this means to you: As long as nobody gets the bright idea to make breakfast cereal from wood chips.