Royal Dutch Shell is abandoning the pursuit of a project with Iogen Corporation to build a larger scale cellulosic ethanol facility in southern Manitoba.
In June 2010, the two companies made a further investment in Iogen Energy, their jointly owned subsidiary, to accelerate the commercial deployment of Iogen Energy’s process for making cellulosic ethanol from agricultural residue. Shell committed to fund research and development activities at Iogen Energy until mid-2012. (Earlier post.)
As a result of the decision, Iogen Energy will “refocus” its strategy and activities. This refocusing will lead to a smaller development program at Iogen Energy and a loss of 150 jobs.
Shell says it will continue to explore multiple pathways to find a commercial solution for the production of advanced biofuels on an industrial scale.
Iogen Corporation will continue to employ approximately 110 people at its Ottawa headquarters and plans to expand its line of offerings with new technology for the production of advanced and cellulosic biofuels.
Iogen Corporation’s industrial enzymes business—solutions to customers in the grain processing, animal feed, pulp and paper and textiles industries—will not be affected by these changes.