Genera Energy plans to take on a more focused role as a biomass supply company for biofuels producers as the state of Tennessee's $70.5 million investment in the Tennessee Biofuels Initiative ends this month.

At the same time, the University of Tennessee will spin off a second company, TennEra, based on the Genera model, to pursue related opportunities to transfer university technology to the marketplace, according to Kelly Tiller, Genera president and CEO.

TennEra's general research and development focus will be on technologies and processes for biomass fractionation, or separating cellulosic biomass components and commercial application of biorefinery co-products.

Meanwhile, Genera will shift away this summer from its work with the Tennessee Biofuels Initiative to become a self-sustaining commercial venture as a biomass supply company.