Codexis sent this news today about Shell and biofuel producer Cosan announcing their planned $12bn joint venture to produce and market sugarcane-based ethanol and electricity in Brazil as well as explore business opportunities to produce and sell ethanol and sugar worldwide.
The resulting joint venture will form a 3rd largest ethanol producer in the world with 4,500 retail stations and annual production capacity of 2 billion liters (440 million gallons). The proposed JV will have a combined total annual sales of 18bn liters of fuels.
Cosan currently has a sugarcane crushing capacity of 60m tonnes/year from 23 mills, and ethanol production capacity of 2bn liters/year.
Now what's the role of Codexis here, you would ask? The company said Shell will contribute its 15% equity stake in Codexis, as well as its 50% stake in cellulosic biofuel developer Iogen Energy to the new JV.
Codexis said the new JV, pending regulatory approval, would accelerate the commercialization of Codexis' advanced biofuels technology. The company is developing biocatalysts for use in producing advanced biofuels using non-food based biomass feedstock under a multi-year research and development collaboration with Shell.
[Photo from al.com]