Joint venture to develop "bolt-on" biofuel technology

DuPont and Genencor set to invest $140m in attempt to commercialise production of second generation cellulosic ethanol

Engineering giant DuPont yesterday unveiled plans for a major new joint venture with biofuel specialist Genencor as it seeks to establish a standardised technology for producing so called second generation biofuels.

DuPont and Genencor's parent company, Danish food giant Danisco, said that they will jointly invest $140m over three years in the newly-formed DuPont Danisco Cellulosic Ethanol company as it aims to develop technology capable of producing ethanol from cellulosic biomass such as waste plant matter and grasses.

The joint venture's technology is to be designed so that it can be used as a "bolt-on" to an existing ethanol plant, expanding its capacity to accept cellulosic biomass as well as traditional energy crops. Although the company added that the design could also be used as the basis for a stand-alone cellulosic ethanol facility.

DuPont is expected to provide pre-treatment technologies, while Genencor's enzyme technology will be used to accelerate the breakdown of the waste material. The joint venture will initially focus on using agricultural waste material such as corn cobs and sugar cane.

Tom Knutzen, chief executive of Dansico, said that the aim of the new joint venture would be to establish "the technology standard for cellulosic ethanol production". It is expected to try and achieve this by ultimately licensing the technology to independent ethanol producers and other "regional affiliates".

The joint project is expected to open its first US pilot plant in 2009 while its first commercial-scale demonstration facility is slated for launch within the next three years.