Canadian biofuel developer Iogen Energy Corp. took on an undisclosed but potentially huge amount of additional
investment
from Royal Dutch Shell plc, which is boosting its stake in the
cellulosic ethanol producer from 26.3% to 50%. Shell first invested in
Iogen in 2002 and holds its position alongside other venture and
strategic investors Goldman, Sachs & Co. [
GS], Petro-Canada, the
government of Canada and biotech producer Royal DSM NV.
Shell, along with Chevron Corp. [
CVX], and BP plc (which even boasts Beyond
Petroleum as a marketing slogan), has been an active investor in all
kinds of alternative fuel development, in marked contrast with Exxon
Corp. [
XOM], which has fought with investors over its
intransigence
about alternative fuel and global warming initiatives. But the Iogen
commitment is particularly significant in making such a big play in
liquid fuels that directly compete with gasoline.
Shell's investment will support additional technology development as
part of the oil giant's commitment to next-generation biofuels that use
non-food feedstocks, advancing Iogen's work with raw materials
such as wheat straw. Iogen opened a demonstration plant in Ottawa in
2004, and the Shell investment may support a full-scale commercial
plant currently in feasibility and design assessment studies.
In addition to ethanol production, Iogen is working on broad
biotechnology applications that include development and manufacturing
of enzymes in textile, animal feed and pulp and paper industries. The investment from DMS
(formerly Roche Vitamins) is related to work the company is doing with
enzymes used in animal feed, while the Canadian government has invested
partly to support work that is being done in enzyme development with
the country's large pulp and paper industry.
-- Clifford Carlsen
See July 15 press release from Iogen Energy
See May 27 post from Corporate Dealmaker
For more see
Green Car Congress
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