Ensyn signs joint venture with Brazilian fiber producer
October 5, 2102, Ottawa, ON – Canadian biofuels company Ensyn has formed a strategic alliance with Brazilian pulp and fiber producer Fibria Celulose to develop cellulosic liquid fuels and chemicals.
The alliance includes the establishment of an equally-owned joint venture for the production of cellulosic liquid fuels and chemicals in Brazil besides a $20 million equity investment in Ensyn by Fibria.
The investment will provide Fibria six per cent stake in Ensyn besides the right to improve its investment to nine per cent in the future.
Ensyn developed the proprietary rapid thermal processing technology, used in the conversion of wood and non-food biomass into renewable liquid fuels and chemicals.
Fibria chief executive officer Marcelo Castelli remarked that Ensyn is now the company's key partner in cellulosic liquid fuels development.
"Our mission is to leverage our expertise in growing fiber and market position in Brazil to develop a value-added, non-food renewable fuels business that complements our global leadership in pulp production.
"We believe Ensyn and its technology platform, together with Fibria s capabilities, will allow for the generation of a powerful biofuels growth business over the coming years," Castelli added.
"We are pleased to establish a key strategic alliance with Fibria," said Dr. Robert Graham, chairman and CEO of Ensyn. "Fibria's significant expertise, resource base and strong local presence are a perfect fit for Ensyn as a joint venture partner in this major market. In addition, we welcome Fibria as a shareholder to Ensyn Corporation and to our Board of Directors."
The transaction is expected to close by the end of October 2012 with Canadian Imperial Bank of Commerce and Deutsche Bank being the financial advisors to Ensyn.