08 June 2010 17:27 [Source: ICIS news]
No financial details were disclosed, but under the deal Shell said it would take a seat on Virent’s board of directors.
The two companies have worked together in the development of biogasoline production from plant sugars. That partnership began in 2007 and resulted in the start-up of a pilot plant last year, the oil company said.
Biodiesel is typically made from vegetable oils, but Shell said it would develop a process started by Virent to convert plant sugars sourced from non-food crops directly into diesel.
"The expansion … to include research into the production of diesel from plant sugars offers considerable potential and complements Shell’s wider biofuels portfolio,” said Luis Scoffone, vice president of alternative energies at Shell.
Market participants said the outlook for the second-generation biodiesel market was good, as the product would not require blending and could fully replace conventional diesel.
The investment in Virent expands Shell reach into the global biofuels market.
Shell is among several oil companies and refiners investing in biofuels.
US refiner Valero earlier this year became one of the top three US ethanol producers, after acquiring plants formerly owned by bankrupt ethanol maker VeraSun.
($1 = €0.84)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|