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March 17, 2009
Oil giant Shell has stepped up its push into the biofuels sector, shelling out an undisclosed sum to increase its stake in Codexis, a developer of enzymes designed to enhance the efficiency of second generation biofuels.
The company announced last week that it has increased its equity stake in Codexis and will take an extra seat on the company's board. According to reports, the deal is on a similar scale to $30m (£21m) deal that saw Shell take an initial stake in the firm back in 2007.
Under the terms of the latest agreement, Codexis has agreed to work with Iogen, a biofuel developer in which Shell also holds a stake, on a project that will see Codexis' enzymes used at Iogen's cellulosic ethanol plant in Canada.
Iogen's plant uses enzymes to break down the cellulose in waste agricultural matter such as wheat straw to create sugars that are then distilled to make ethanol. It will now trial Codexis' enzymes in an attempt to enhance the efficiency of the process, which aims to create second generation ethanol that does not rely on food stocks such as corn.
Shell and Codexis say they will also expand their co-operation on research projects designed to identify enzymes that could turn biomass directly into biofuels similar to gasoline and diesel, removing the need for energy intensive fermentation processes.
"The expert Codexis team will make a real difference in the race toward full-scale commercial production of biofuel from non-food sources, says Graeme Sweeney, Shell executive vice president, future fuels and CO2. Better enzymes will improve efficiency and help lower costs."
The two companies say they will work together to expand their existing research centre in the US and also open a new centre in Budapest, Hungary.
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WINNIPEG, Manitoba, July 15 (Reuters) - Oil major Royal Dutch Shell Plc (RDSa.L: Quote, Profile, Research) said on Tuesday it will make a "significant investment" in a venture it has with Canadian cellulosic ethanol maker Iogen Corp.
Shell said it would increase its stake in Iogen Energy Corp, a subsidiary of Iogen that focuses on technology develompent, to 50 percent from 26.3 percent.
Shell also said it would consider investing in a full-scale commercial plant for the Iogen technology, which makes ethanol from wheat straw. It did not disclose how much it will invest in the privately held company.
Iogen, which is also backed by Goldman Sachs Group Inc (GS.N: Quote, Profile, Research), has run a demonstration plant in Ottawa since 2004 that can produce about 2.5 million liters of ethanol a year from the plant stalks that are left behind after farmers harvest crops.
It is planning to open a C$500-million ($500 million) commercial-scale plant in Saskatchewan, Canada's largest wheat-producing province, in 2011. That plant would produce about 90 million liters (23.78 million U.S. gallons) of ethanol a year.
Iogen has also been working on a similar project in Idaho.
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15/07/2008
Royal Dutch Shell plc and its subsidiaries ("Shell" ) and Iogen Corporation today announced an extended commercial alliance to accelerate development and deployment of cellulosic ethanol.
The terms of the agreement include a significant investment by Shell in technology development with Iogen Energy Corporation, a jointly owned development company dedicated to advancing cellulosic ethanol. The arrangement will also see Shell increasing its shareholding in Iogen Energy Corporation from 26.3% to 50%. Shell first took an equity stake in 2002.
The collaboration with Iogen is a key part of Shell's strategic investment and development programme in biofuels, particularly in 'next generation'biofuels using non-food feedstocks. The fuel is made from raw materials such as wheat straw and promises to reduce CO2 production by up to 90% compared to conventional gasoline.
Iogen's first demonstration commercial plant opened in Ottawa in 2004. Shell is considering investing in a full-scale commercial cellulosic ethanol plant and is contributing to Iogen's detailed feasibility and design assessment work.
Commenting on Shell's increased investment, Dr. Graeme Sweeney, Shell Executive Vice President Future Fuels and C02 said "This is a strong statement that Shell is committed to accelerating the development of cellulosic ethanol in collaboration with Iogen. We have come a long way together already on this particular technology pathway for sustainable biofuel and we will be working ever closer to meet the technical and commercial challenges facing larger scale production."
"We are excited to see this expanded partnership" , said Brian Foody, Chief Executive Officer of Iogen Corporation. "This transaction sets the stage for successful large scale cellulosic ethanol production."
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam and New York stock exchanges. Shell companies have operations in more than 110 countries and territories, with businesses including: oil and gas exploration; production and marketing of liquefied natural gas and gas to liquids; marketing and shipping of oil products and chemicals; and renewable energy projects including wind, solar and biofuels. |
