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Shell and Codexis Expand Collaboration to Hasten Commercialization of Iogen Cellulosic Ethanol Process; Work on Biohydrocarbons Continues

Royal Dutch Shell plc and Codexis, Inc. have expanded their collaboration to develop better biocatalysts that could accelerate commercialization of next-generation biofuels. Shell also increased its equity stake in Codexis and will take an additional seat on the company’s board.

As part of the agreement, Codexis will work closely with Shell and Iogen Energy Corporation to enhance the efficiency of biocatalysts used in the Iogen cellulosic ethanol production process. The Iogen demonstration plant in Ottawa, Canada currently produces hundreds of thousands of liters of cellulosic ethanol from agricultural residue, such as wheat straw. In 2008, Shell increased its stake in Iogen to 50%. (Earlier post.)

The research program with Codexis aims to enhance the Iogen process and shorten the timeline to its full-scale commercial deployment. Iogen’s technology uses biocatalysts to break down the cellulose in biomass and convert it to sugars, which are then fermented and distilled into ethanol.

The new Shell-Codexis deal also continues the collaboration announced in November 2007 to investigate other biofuels, researching new biocatalysts to convert biomass directly into renewable hydrocarbon components similar to gasoline and diesel. (Earlier post.) Codexis will expand research at a center in the US and at a new center in Budapest, Hungary.

In just over two years, our biofuels collaboration with Shell has grown from a pilot project to a significant multifaceted program to create commercial-scale biofuels from non-food sources. Codexis has complemented its advanced directed evolution platform with world class technologies ranging from systems biology to large scale biocatalyst production.

—Dr. Alan Shaw, Codexis President and CEO

Codexis develops novel industrial biocatalysts, including enzymes and microbes, for use in the energy and pharmaceutical industries. The Codexis directed evolution platform (“MolecularBreeding”) uses DNA shuffling to generate a library of novel genes or genomes via recombination of selected starting or parental genes or genomes.

Codexis then screens the encoded library of novel enzymes or strains for those possessing desirable and improved properties and repeats the process until the resulting enzymes or strains meet or exceed the desired efficiency benchmark.

Shell’s global biofuels program also includes collaborations with Choren (on production on BTL) and Virent (on development of biogasoline); a joint venture called Cellana (development of marine algae for vegetable oil); and work with a number of academic institutions globally.

Comments

SJC

Maybe it is just me, but when I hear about Shell, Chevron or any other big oil company buying into the "next generation" of biofuels I have to wonder. I do not imagine that they will be rocketing to the front of the pack with all their petro dollars...quite the opposite.

Andrey Levin

SJC:

Iogen is the oldest company in cellulosic ethanol game; first experiments were done just after WW2. In early 70s Chevron was major financier of Iogen, but abandoned the idea when oil prices crushed. Iogen was able to survive by supplying industrial enzymes to manufacturers of … stonewashed jeans.

SJC

That may be, but I can remember quite a while ago Iogen was going to the the next big thing and now they are still selling to investors and trying to raise capital. 10 years seems quite a long time from a break through to any significant production.

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