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Canadian ethanol technology heads to Brazil

November 29, 2013, Ottawa, Ont. – Iogen Corporation announced that Brazilian ethanol giant Raízen Energia Participacoes S/A, has started construction of a commercial biomass-to-ethanol facility using Iogen Energy`s (a joint venture between Raízen and Iogen Corporation) advanced cellulosic biofuel technology.


November 29, 2013
By Iogen

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November 29, 2013, Ottawa, Ont. – Iogen Corporation
announced that Brazilian ethanol giant Raízen Energia Participacoes S/A, has
started construction of a commercial biomass-to-ethanol facility using Iogen
Energy`s (a joint venture between Raízen and Iogen Corporation) advanced
cellulosic biofuel technology.

The $100 million plant, to be located adjacent to Raízen’s
Costa Pinto sugar cane mill in Piracicaba, São Paulo, will produce 40 million
litres of cellulosic ethanol a year from sugarcane bagasse and straw. Plant
start-up is anticipated in the fourth quarter of 2014.

Iogen will provide cellulosic ethanol related process
technology, process designs and start-up and operational services to Raizen
through their jointly owned Iogen Energy affiliate. Iogen Energy, the original
owner of the technology, has granted comprehensive licenses to both Raizen and
Iogen Corp.

“This announcement is just the beginning of our partnership
with Iogen,” says Vasco Dias, CEO of Raízen. “We believe Iogen has the most
robust, well proven, and competitive technology platform in the cellulosic
ethanol business and, after this first facility is complete, we plan to combine
Iogen’s cellulosic ethanol with seven more of our sugar cane production
operations. We see tremendous potential for this technology in meeting the
world’s growing demand for cleaner and more sustainable fuels, and we
anticipate a long and profitable future.”

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The announcement follows one year of development,
engineering, and design work associated with the commercial cellulosic biofuels
facility. After concluding that Iogen had the most advanced technology for
building co-located commercial plants at Raízen’s sugar cane ethanol
facilities, Raízen committed, in July 2012, an initial investment to a project
in Brazil with Iogen through their jointly owned Iogen Energy affiliate.

Earlier, the Banco Nacional de Desenvolvimento Economico e
Social (BNDES) reported that it has approved funding of BRL 207.7 million for
Raizen to build a production plant for second generation ethanol using
sugarcane biomass.

"It will be the first project in the world that uses
technologies for conversion of bagasse and cane straw at industrial scale that
is fully integrated into the process of conventional ethanol, obtained from the
juice of sugar cane (first generation)," said the BNDES.

“The technology being deployed has undergone extensive
testing and validation work. We have nine years of demonstration scale
operating experience with cereal straw and corn stover, so by operating over 6
months with the Brazilian bagasse, we were able to identify differences,
troubleshoot problems, collect information, and adapt designs for reliable
low-cost operation” said Brian Foody, CEO of Iogen.

With the technology now being commercialized in Brazil,
Iogen has plans to pursue a deployment program in North America and Europe that
will help meet the renewable fuel obligations in those jurisdictions. The
Company is committed to building effective strategic partnerships with leading
players in the industry, and believes that successful alliances, such as its
one with Raizen, will be needed to deliver on the multi-billion dollar global
cellulosic biofuel opportunity.

"We’re very excited to be working with a major industry
player like Raízen to deliver large scale cellulosic ethanol production” says
Foody. “Raizen is an incredibly dynamic partner with immense know-how and
expertise in first generation ethanol production. We share a common vision for
the global potential of our technology and the importance of developing a
successful first project. This project with Raizen is a key step towards
rolling our technology out around the world.”

 


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