May 15, 2008

Dupont, Genencor Invest $140M In Cellulosic Ethanol Joint Venture

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DuPont and Genencor, a division of Danisco A/S, have formed DuPont Danisco Cellulosic Ethanol LLC, a 50/50 joint venture to develop and commercialize a echnology solution for the production of cellulosic ethanol.

The partners plan an initial three-year investment of US$140 million, which will initially target corn stover and sugar cane bagasse. Future targets include multiple ligno-cellulosic feedstocks including wheat straw, a variety of energy crops and other biomass sources.

The parent companies will license their combined existing intellectual property and patents related to cellulosic ethanol. The goal is to maximize efficiency and lower the overall system cost to produce a gallon of ethanol from cellulosic materials by combining the process steps into a single technology solution.

The venture expects its first pilot plant to be operational in the U.S. in 2009, and its first commercial-scale demonstration facility to be operational within the next three years.

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