Raízen investing in cellulosic ethanol company Iogen; joint development of cellulosic ethanol project in Brazil

16 October 2012

Raízen Group, the world’s largest producer of sugarcane ethanol, has committed an initial investment to develop a commercial cellulosic ethanol project in Brazil with Canada-based Iogen Energy, operator of the longest-running cellulosic ethanol facility.

The investment, the first step toward the commercialization of cellulosic biofuels technology in Brazil, will cover development and engineering costs associated with the front end design of a biomass-to-ethanol facility to be co-located with Raízen’s Costa Pinto facility in Piracicaba, São Paulo.

The deal comes after Raízen conducted a thorough review of cellulosic technologies and concluded that Iogen is the company with the most advanced technology ready for commercialization at Raízen’s sugar cane ethanol facilities.

Raízen Energia S/A is the production company of Raízen Group, a $12-billion joint venture between Royal Dutch Shell and Brazilian ethanol company Cosan SA. (Earlier post.) Included in Raízen’s portfolio at launch was Shell’s commercialization rights related to Iogen Energy.

Raízen produces 2.2 billion liters of ethanol annually, 4 million tons of sugar, and has installed capacity of 900 MW of electric energy derived from sugar cane bagasse. The company has more than 4,500 service stations for retail fuel distribution in Brazil, 700 convenience stores, 53 fuel distribution depots, and aviation fuel businesses in 54 airports in Brazil.

Iogen Energy has been producing cellulosic ethanol at its Ottawa demonstration plant since 2004 where is has manufactured more than two million liters (528,000 gallons US). Iogen also develops, manufactures and markets enzymes used to modify and improve the processing of natural fibers within the textile, animal feed, grain processing, and pulp and paper industries