Industrial enzymes producer Novozymes and Beta Renewables will partner to produce biofuels from agricultural residues, energy crops and other cellulosic feedstocks.
As part of the agreement, Novozymes will acquire a 10 percent share in Beta Renewables, paying approximately $115 million cash for the equity, marketing fees, other intellectual property rights and milestone payments.
The partners will combine Novozymes’ Cellic enzymes and Beta Renewables’ Prosea engineering and production technology. Beta Renewables will embed Novozymes’ enzymes in the Prosea technology and guarantee biofuel production costs upon start-up of customers’ cellulosic facilities.
The deal will help reduce the financial risk of cellulosic biofuel projects and help accelerate large-scale commercialization of the industry, says Beta Renewables’ Chairman and CEO Guido Ghisolfi.
Novozymes expects Beta Renewables to be able to contract 15 to 25 new facilities within the next three to five years, representing potential sales of $175 million, according to Novozymes.
For more information, visit www.novozymes.com.