Abengoa Bioenergy New Technologies, Inc. has agreed to pay Dyadic International, Inc., a global biotechnology company focused on the discovery, development, manufacture and sale of enzyme and protein products for the bioenergy, biochemical, biopharmaceutical and industrial enzyme industries, $5.5 million for an expansion of its rights under the non-exclusive license agreement the parties entered into in February 2009. (Earlier post.)
The license agreement originally provided Abengoa with the right to use Dyadic's C1 platform technology to develop, manufacture and sell enzymes for use in second generation biorefining processes to convert biomass into sugars for the production of fuels, chemicals and/or power in certain territories.
The amended license agreement expands the territories to worldwide rights and provides Abengoa with the ability to produce, use and sell C1 enzymes in first as well as second generation biofuels and other bio-based processes.
In addition to the license fee described above, Dyadic is entitled to receive royalties on the commercial production and use by Abengoa, its affiliates and third party sublicensees, as well as royalty fees on the sale of products by Abengoa and its affiliates. Abengoa will have the right to work with third party sublicensees to further develop C1 enzymes. All other terms of the amended and non-exclusive license agreement remain confidential.