Financial details of the acquisition will not be disclosed. Completion of the transaction is subject to customary approvals and notifications.

DSM currently is already capable of offering both enzyme and yeast fermentation technologies to increase conversion rates to make the technology commercially viable. The yield of DSM’s advanced yeast technology for second generation bio-fuels on cellulose derived C5/C6 sugars can exceed 90% conversion rate, recent tests have shown.

There are two primary classes of fermentable sugars that are liberated from cellulosic biomass during hydrolysis, six carbon sugars (C₆) and five carbon sugars (C₅). Typically yeasts only consume C₆ sugars, but DSM’s advanced yeast technology is capable of converting both C₆ and C₅ sugars to ethanol. DSM wants to be the technology provider for the second generation biorefineries, providing enzymes to convert the biomass into a sugar mix and yeast to convert the C₆ sugars as well as the C₅ sugars. DSM is convinced this will be a winning combination.

C5 Yeast Company has developed a key yeast technology and extensive patent position. The acquisition adds additional technology for the conversion of specific fractions of biomass (C₅ sugars/arabinose) to DSM’s portfolio, allowing DSM to further optimize its yeast technology.

DSM is currently working with many companies in the development of second generation biofuels and is overall on-track to support several commercial demonstration facilities timed to start up in 2014.