"To address a $75 billion market opportunity," DuPont and Genencor, a division of Danisco A/S,
will form DuPont Danisco Cellulosic Ethanol LLC, a 50-50 global joint venture. By combining DuPont's proprietary pretreatment and ethanologen technology with Genecor's enzyme technology, the JV will work to develop and commercialize a low-cost solution for the production of cellulosic ethanol as an alternative to traditional corn-based ethanol. Their goal:
To license its technology package directly to ethanol producers for deployment in the U.S. and around the world, as well as through the establishment of regional cellulosic ethanol affiliates, which will invest in equity interests with strategic partners, including ethanol producers and energy companies.
The partners plan an initial three-year investment of $140 million, initially targeting corn stover and sugar cane bagasse, or sugarcane pulp. Future targets include wheat straw, a variety of energy crops and other biomass sources. The JV plans to open a plant next year and enable production of commercial volumes of cellulosic ethanol by 2012.
With fuel prices soaring, the pursuit of low-cost biofuel alternatives is a popular business model. CD Forum recently reported that
BP plc entered the production side of ethanol with its investment in Tropical BioEnergia SA, a JV established by Brazilian firms Santelisa Vale and Maeda Group. And Chevron
Corp. and Weyerhaeuser Co. in February
announced the creation of a 50-50 JV to develop
technology for converting cellulose-based biomass into carbon biofuels.
Some food for thought: There is serious debate about whether the
demand for biofuels are pushing up food prices around the world. -
Baz HiralalSee the announcement from DuPontGo to the biofuel debate article from FoodNavigatorUSA.com
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